Sensex, Nifty swing between losses and gains in early trade

By Koustav DasBenchmark stock market indices opened weaker on Tuesday after gaining sharply in the previous trading session. The weakness in early trade was largely due to weakness in banking and financial services companies.

The S&P BSE Sensex was down 161.79 points at 61,183.92 at around 9:35 am, while the NSE Nifty 50 fell 31.65 points to 18,367.20.

However, both indices made a recovery and were back in positive territory around 9:50 am

Among sectoral indices, Nifty Realty was leading from the front, followed by Nifty IT, Nifty Pharma and Nifty PSU Bank.

However, the heavyweight banking and financials snapped their winning streak, dragging down the entire market in early trade.

Some of the top gainers on the Nifty 50 were Divi’s Laboratories, ONGC, Cipla, Bajaj Finance and Infosys. On the other hand, Maruti, IndusInd Bank, UPL, L&T and M&M were the top drags on the 50-share index.

Stock markets were expected to open on a positive note today, supported by positive retail inflation data and persistent buying by foreign institutional equities.

Also Read | Sensex, Nifty climb as investors cheer positive inflation data; auto stocks gain

Hopes of a debt ceiling deal in the US also boosted sentiments as Wall Street equities advanced.

“All US Indices closed on the higher side while the Asian market also trading on a positive note. On the daily chart, a modest positive candle with light upper and lower shadows formed in Nifty. The immediate support remains at 18250 while Resistance is placed at the 18520-18580 zone,” said Om Kumar Mehra, tehcnical analyst, Choice Broking.

“A successful close over 18600 will trigger a breakout in the index. Strong FIIs buying have boosted the sentiments which had led the Index to scale higher while Bank Nifty on verge to attain all-time high. We anticipate Banking and IT stocks would hold the command for today’s session,” he added.