Stock specific moves likely

After a volatile trading session, the Sensex ended flat with 22.21 points, or 0.06 per cent lower, to settle at 36,351.23, while the Nifty 50 Index fe­­­ll 23.35 points, or 0.21 per cent, to close at 10,957.

The BSE Mid-Cap Index fell 0.63 per cent and the Small-Cap Index fell 1 per cent as investors turned cautious ahead of a no-confidence motion against the government on Friday.

The market breadth was weak as only 827 shares rose, while 1,754 shares saw a dip. Among the sectoral indices on BSE, Con­sumer Durables Ind­­­­e­x (up 0.99 per cent), FMCG Index (0.52 per cent) and Oil & Gas Index (0.17 per cent) outperformed the Sensex.

Technical view

Pritam Deuskar, fund manager, Bonanza Portfolio, said: “The Nifty range looks, as per open interest data, between 11,200 and 10,600. With the recent rally in large-caps, some small profit booking may come up in a couple of weeks, and we will see range bound to slight negative 2 per cent move in the Nifty. Only a few stocks are holding the indices, and mid-caps and other large-caps were seen declining. With factors like earnings season, rupee depreciation and crude little softening, we will see some stock-specific actions in the consumer, IT and Nifty stocks. CPI data was less than analysts’ expectation, which is positive, but there remains a chance of one rate hike, however, it won’t be immediate. "

Market view

Jayant Manglik, president, Religare Broking, said: “The Nifty ended almost unchanged in a dull trading session and consolidated its position around 11,000. Participants were in profit taking mood from the beginning, citing uneven price swings across the board. Mostly sectoral indices traded in line with the benchmark and closed slightly on the negative side. However, there was no respite on the broader front and both the broader indices lost over half a per cent each.

“The Nifty is showing resilience despite volatile global markets and weakening rupee, but continuous decline in broader markets has pushed the participants completely on the back foot. And unfortunately, there's no sign of reversal on that front yet. We reiterate our view to prefer stock specific trading approach and keeping the leveraged positions hedged.”

—Ashwin Punnen