After trading near record highs in the early session, equity market indices turned volatile and closed flat on Friday, amid mixed cues from global equities. Paring gains from early trade, Sensex ended 12 points higher at 51,544 and Nifty fell 10 points to 15,163. Earlier today, Sensex hit a record high of 51,804 and Nifty hit a lifetime high of 15,243.
Bajaj Finserv, Infosys, HCL Tech, Tech Mahindra, HDFC Bank, TCS were among the top gainers today while Titan, L&T, Tata Motors, Coal India, Eicher Motors were among the top losers. Investors will also await key data outcome such as IIP & CPI data that is scheduled to be released later today.
Yesterday, the 30-share barometer index, the S&P BSE Sensex, ended 222 points higher at 15,531. The NSE Nifty 50 barometer closed 66 points higher at 15,173.
Sectorally, indices ended on a mixed note today. Gains in realty, IT, banking and financial stocks were capped by losses in pharma, FMCG, metal and auto scrips.
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets continued their lacklustre move throughout the day. This was characterised by less than average volumes on the Nifty futures contract as well. The target of 15500 is still open and traders can accumulate positions for this target with a strict stop below the 14500 mark which is good support for the index. Since the risk-reward ratio is skewed, a buy on intraday corrections would be a prudent way to enter long positions."
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited- Investment Adviser said,"The market's short-term technical conditions favouring a sideways correction is in the process. While it is subject to further price action evolution, we retain our cautious stance and advise the traders to refrain from building a new buying position until we see further improvement and breakout above 15250 (Nifty 50 Index). The momentum indicators like RSI, MACD continue showing divergence, the market is likely to take a pause around this level and stay in a range. We expect the 15230-15250 level to act as short-term resistance."
Anand James, Chief Market Strategist at Geojit Financial Services said,"Risk appetite trickled down and equities pared gains with several cities across globe entering fresh lockdowns. Oil's winning streak was also broken following IEA's bleaker demand outlook. Indian equities were in the green in the first half with Bank Nifty rising over 1%, but VIX rose in the second half, and traders opted cut down long bets across sectors, going into the weekend."
Traders said market indices have gained over 8% since January month on back of an optimistic union budget, better than expected corporate earnings, continued foreign fund flows and positive progress on the COVID-19 vaccinations.
Overseas, Asian stocks continued to trade on a mixed note on Thursday as multiple major markets in the region like China, Japan, South Korea and Taiwan were closed for holidays. Australian markets were trying to remain in green with thin volumes. Oil price saw profit booking but decline was capped on hopes that production cuts and vaccine rollouts might drive demand recovery
In US, the Nasdaq and S&P 500 gave up early gains by midday but bounced back towards the end to close on a flat to positive note backed by IT stocks. The Dow Jones Industrial Average too ended flat. European markets opened flat as traders analysed corporate earnings, amid no major cues emerging out of Asia due to Lunar New Year.
Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research Limited said," The rupee opened on flat at 72.76 against the US dollar in opening trade on Friday morning, Possibility of RBI intervention from this level to offset the impact of foreign inflows in local equity. FII bought 944.36 CR into the domestic equity market strengthened domestic currency, Investor will take try to fresh ques from today's CPI and IIP data. All other major Asian markets are closed, the dollar index changed a bit, and trading at 90.50 in the morning session. The U.S. Dollar Index is currently testing the nearest support level at 90.30 and several times it proved its strength. Only below 90.30 will push the U.S. Dollar Index towards the support at the 90 level. Technically, USDINR Feb Future closed at 72.95. it is expected to trade with bearish momentum for the day, Market is trading in a very narrow range above the crucial support and below the strong resistance, Breakout of either side will push currency very sharply."
On the currency front, Indian Rupee gained by 12 paise to close at 72.75 against US dollar.
Rohit Singre, Senior Technical Analyst at LKP Securities said,"Index managed to hold the bullish stream throughout the week and closed a week at 1563 with gains 1.60 percent and formed a small bullish candle on weekly chart. The index has formed good support at 15k mark any dip near said levels will be again buying opportunity for the overall targets of 15250 zone which is the strong hurdle on the higher side. The current range is 15000-15250 zone either side breakout will decide the final direction of index."