Benchmark stock market indices opened flat on Monday as shares of heavyweight Reliance Industries Limited (RIL) witnessed a decline of over 2 per cent in early trade.
The cautious sentiment in the market comes after a sharp fall in both the benchmark indices in the previous trading session, adding to the uncertainty among investors.
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As of 9:38 am, the S&P BSE Sensex was down nearly 30 points at 66,654.39, while the NSE Nifty 50 declined by 11.40 points to 19,733.60.
While the broader market indices initially showed better performance, volatility quickly entered the picture, leading to a sharp spike.
Among the sectoral indices, Nifty Realty and Nifty Auto were the top gainers, while Nifty Oil & Gas faced the most significant decline at 0.55 per cent.
The top five gainers on the Nifty 50 were Mahindra & Mahindra (M&M), Larsen & Toubro (L&T), Axis Bank, IndusInd Bank, and Grasim. Conversely, Kotak Mahindra Bank, Reliance Industries Limited, JSW Steel, and Hindustan Unilever (HUL) experienced losses.
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The decline in Reliance shares was prompted by its announcement of weak Q1 results, which were released after market hours on Friday. This development has further added to the cautiousness prevailing in the market.
Adding to the market’s watchful stance are several companies set to report their first-quarter results today. Tata Steel, L&T, Tata Motors, Asian Paints, Tech Mahindra, Bajaj Finance, Axis Bank, Nestle India, and Bajaj Finserv are among the major companies scheduled to declare their Q1FY24 results.
Deven Mehata, a research analyst at Choice, commented on the market’s technical outlook, stating, “The charts indicate that the Nifty may find support at 19,675, followed by 19,650 and 19,600. In case of an upward movement, 19,800 will be the initial key resistance level to watch out for, followed by 19,850 and 19,900.”
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He further advised traders and investors to consider purchasing quality shares during dips but emphasized the importance of implementing proper stop losses to manage risks effectively.
