Sensex, Nifty open lower; Senco Gold, Hi-Tech Gear jump 10%

Tanking over 1 per cent on Monday’s trade, the domestic benchmark indices opened lower on Tuesday. The BSE Sensex traded at 73,062.29, lower by 337.49 pts or 0.46 per cent as of 9.33 am, and the Nifty 50 traded at 22,196.00, down by 76.50 pts or 0.34 per cent.

Nifty smallcap 100 was up 0.78 per cent at 16,337.70, and Nifty midcap 100 was up 0.18 per cent at 49,369.20.

The sectoral indices traded in a mix. Nifty IT declined over 1 per cent to trade at 34,112.95. Nifty oil & gas, media, auto, metal, consumer durables, FMCG, and pharma traded positively as of 9.38 am.

Commenting on Nifty outlook, Anand James, Chief Market Strategist, Geojit Financial Services, said, “The 22,110 objective that we had started with is one stretch away. Though the fact that yesterday’s opening low defended a repeat attack towards close, will encourage bargain buying today, but we will look for a push above 22,350 for upside confirmation. Inability to do so, or a direct fall below 21,800 could confirm a break of the bullish structure that had 23,200 in the horizon, and line up 20,300 instead, as the first objective for the bear move.”

Shrikant Chouhan, Head Equity Research, Kotak Securities, stated that the market is facing sustained selling pressure at higher levels. “The index has formed a bearish candle on the daily chart and a bearish continuation pattern on the intraday chart, indicating potential further weakness. For traders, the 20-day SMA (Simple Moving Average) or 22,300/73,500 is a key resistance level. If the index falls below this level, the weak sentiment is likely to continue, and the market may slip to a 50-day SMA or 22,150/72,965. This could potentially drag the market towards 22,050/72,650. However, if the index manages to trade above the 20-day SMA, a technical upside to 22,420-22,440/73,800-73,900 could be possible.”

“The Bank Nifty has meaningful support between 47,200 and 47,000 below the level of 48000. Buying is advisable only around 22,050 on the Nifty and 47,200 on the Bank Nifty. If the Nifty bounces to 22,300 or 22,400, it’s advisable to reduce long positions. Given the current market volatility, level-based trading is the ideal strategy for day traders,” Chouhan added.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt Ltd, said, “The support for the day is seen at 72,900/22,100 levels while the resistance is seen near 73,800/22,400 zone.”

Stocks to watch

The stocks that were major gainers on the NSE as of 9.43 am were ONGC (1.84 per cent), Nestle India (1.13%), Hero Motocorp (1.10%), Eicher Motors (1.01%), and Maruti (0.77%). Stocks such as LTI Mindtree (-2.92%), IndusInd (-1.93%), Bajaj Finserv (-1.59%), Bajaj Finance (-1.50%), and Infosys (-1.39%) were major laggards.

Infosys Ltd has announced the completion of the technology landscape separation program of the Australian express logistics business, Team Global Express. 

Senco Gold stock hit a 52-week high at ₹1,066.50. The stock traded at ₹1,044.55 on the NSE, higher by 9.73 per cent as of 9.48 am.

The Hi-Tech Gears Ltd stock traded in upper circuit at ₹962.85, higher by 10 per cent on the NSE.

Vodafone Idea stock declined 3.42 per cent on the NSE, trading at ₹12.70 as of 9.57 am.

The board of Hinduja Tech Ltd, subsidiary of Ashok Leyland, had approved allotment of compulsorily convertible preference shares and equity shares to investors. Ashok Leyland stock declined by 0.17 per cent as of 9.35 am trading at ₹74.55 on the NSE.

The board of GTPL Hathway Ltd has recommended a dividend of ₹4 per equity share of ₹10 each for the financial year ended March 31, 2024. Stock rose 2.75 per cent to trade at ₹192.60.