The benchmark indexes Nifty and Sensex began flat, albeit slightly lower, on August 21 as investors waited for the FOMC Minutes and US Fed Jerome Powell's address at the Jackson Hole Symposium on August 23.
At 9:20 a.m., the Sensex was down 8.52 points, or 0.01%, at 80,794.34, while the Nifty was up 4.20 points, or 0.02%, at 24,703.00. Approximately 1826 shares increased, 773 shares decreased, and 150 shares were unchanged.
"The market has encountered some hard resistance around the 24,750 level, and data shows that the market is still in a consolidation stage. Probably this range bond nature can be sustained for the following number of sessions", says Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Bathini also stated that the market expects a rate decrease, and the RBI's decision in concert with the US Fed is more crucial for Indian stocks.
L&T shares were in spotlight today after the Bombay High Court dismissed a Rs 2,237-crore GST claim filed against them. Shares of the business were trading at Rs 3,591, up 0.5%. Tata firms were also in the spotlight as S&P Global lifted their rating actions on many firms following a change in its outlook, bolstered by anticipation of further support from the group's parent.
The wider market, which includes mid and small-size indexes, outpaced the flagship indices, advancing 0.2 and 0.4 percent, respectively. Since the beginning of the year, the wider market has drawn increased investor interest while outpacing the Sensex. "In the mid-small caps, we are witnessing a very stock-specific action right now and while there could be concerns on valuations, but not for every company," says Bathini.
On August 20, foreign institutional investors (FIIs) sold shares worth Rs 1457 crore while domestic institutional investors acquired equities worth Rs 2252 crore.
Among sectors, Nifty FMCG, Pharma, Energy, and Healthcare shone brightly in another relatively flat market. This is because experts feel that relative values are appealing, and the sectors may see some purchasing interest. Following yesterday's dramatic surge, banks and IT equities saw profit booking. The Realty index also declined, with firms like Godrej Properties and DLF dragging it down.
"After a flat beginning, Nifty may find support at 24,600, followed by 24,550 and 24,500. On the upper side, 24,800 may be an immediate resistance, followed by 24,850 and 24,900," Hardik Matalia, Research Analyst at Choice Broking, stated. "The Bank Nifty charts show that it may find support at 50,500, followed by 50,300 and 50,200. If the index rises higher, 51,000 would be the first critical barrier, followed by 51,100 and 51,300," he said.
Divi's Labs, Dr. Reddy's, Bajaj Finserv, Bharti Airtel, and L&T were the Nifty's top gainers. The laggards were UltraTech Cement, Shriram Finance, Tech Mahindra, HDFC Bank, and HCL Tech.
