Investors turned little nervous ahead of earnings season with the market ending on a flat note. The S&P BSE Sensex fell 10.12 points or 0.03% to close at 34,433.07, while the Nifty 50 index shed 4.80 points or 0.05% to settle at 10,632.20. In fact, the Sensex had hit a record high in early trade.
The mid and small cap segment underperformed as the S&P BSE Mid-Cap index fell 0.31% while the BSE Small-Cap index dropped 0.04%. Among the sectoral indices on BSE, the S&P BSE Auto index (down 0.68%), the S&P BSE Consumer Durables index (down 0.65%), the S&P BSE Finance index (down 0.46%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.4%), the S&P BSE Utilities index (down 0.39%), the S&P BSE Capital Goods index (down 0.37%), the S&P BSE Bankex (down 0.31%), the S&P BSE Basic Materials index (down 0.22%), the S&P BSE Power index (down 0.2%), the S&P BSE Industrials index (down 0.19%), the S&P BSE FMCG index (down 0.14%) and the S&P BSE Healthcare index (down 0.09%), underperformed the Sensex. The S&P BSE Oil & Gas index (down 0.02%), the S&P BSE Metal index (up 0.10%), the S&P BSE Telecom index (up 0.12%), the S&P BSE Energy index (up 0.17%), the S&P BSE Realty index (up 1.16%), the S&P BSE Teck index (up 1.46%) and the S&P BSE IT index (up 1.84%), outperformed the Sensex.
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking: “It sounds strange when we see overall intraday trading range for the benchmark index; but, look at what ‘IT’ index has done today. We saw a mesmerising rally across all ‘IT’ counters post the midsession. And clearly the shining star was ‘TCS’ as we saw this heavyweight clocking decent gains of nearly 4% to close at record highs one day ahead of its 3QFY2018 earnings. As far as Nifty is concerned, it has once again precisely respected our mentioned trading range of 10660 – 10588. There was some sort of index balancing seen during the mid session as we saw IT space zooming to a great extent and on the other hand, banking conglomerates along with some other heavyweights remained subdued. Due to today’s price action, the daily chart exhibits yet another narrow range candle; indicating exhaustion in benchmarks. We reiterate that traders should remain light on index and keep a close watch of this trading range (10660 – 10588). We just highlighted how ‘IT’ pack showed some interesting move and hence, this pocket remains in focus along with very few selective midcaps for the coming session.
Factors at play
IT index gained on account of relief from US H1B visa norms and expectation of positive outlook helped to recoup the losses. Investors are caution ahead of the budget and rise in CPI inflation and oil prices. —Ashwin Punnen