Sensex, Nifty struggle after opening in red as investors remain cautious

New Delhi: In a volatile trade, the equity benchmark indices on Wednesday opened in red but continued to fluctuate as investors remained nervous on uncertainties over economic growth. Nifty slips below 11,000-mark.

At 10:20 am, Sensex was trading at 37,287.72 down 40.29 points, or 0.11%, however Nifty was trading lower by 21.85 points, or 0.19%, at 10,995.15.

On BSE, Infosys, HDFC Bank, Hero Motor Corp, Maruti Suzuki and Bajaj-Auto were the best performing, rising 0.90%. However, Tata Motors, Yes Bank, Tata Steel, Vedanta and ITC were the biggest laggards on the Sensex pack, shredding as much as 5.05%.

On Nifty, 32 out 50 stocks were trading negative with Tata Motors being the top loser.

“Indecision will prevail as long as 200 DMA(11188) is not breached. However, intraday up moves will depend on the ability to float above 10976. Dips below 10976 could drag index back to 10795/10729,” Geojit Financial Services said in a report.

The broader market continues to remain under pressure with BSE Midcap and Smallcap indices losing 0.40% and 0.34% respectively.

Among sectors, BSE Metal was the worst performer, slipping 1.57% followed by Basic Materials (-0.96%), Realty (-0.93%), Industrials (-0.83%) and Telecom (-0.81%).

Meanwhile, BSE Information Technology was up 0.35% and Teck 0.13% as the rupee strengthened against the US dollar in the opening bell. Rupee opened at 71.48 to a dollar.

“Indian bourses breached prior daily rising trend as NSE-Nifty settled tad above the psychological mark-11,000. Despite daily reversal, its major technical indicators on the daily chart were positively poised above their averages, signals near-term positive momentum will continue. On the lower side, Nifty will initially find support around its swing low-10,780 mark and then at 10,600 level. However in case of rebound, the index will face major hurdle around its long-term moving average 200-day EMA (placed at 11,260 level),” Reliance Securities report said.

“As for the day, support is placed at around 10,900 and then at 10,835 levels, while resistance is observed at 11,070 and then at 11,125 levels,” it added.

Shares of CG Power and Industrial Solutions continued shrink after the company on Tuesday reported major governance and financial lapses. At 11:10 am, the scrip was trading at ₹11.80, touching its 52-week low, tumbling almost 20%.