Mumbai, July 16 The Indian equity indices opened in the red on Wednesday due to mixed cues from global markets.
At 9:26 am, Sensex was down 141 points or 0.17 per cent at 82,429 and Nifty was down 57 points or 0.23 per cent at 25,138.
Midcap and smallcap indices were trading in the green with marginal gains. Nifty midcap 100 index was up 23 points to 59,636 and Nifty smallcap 100 index was up 15 points to 19,150.
“The market has been oscillating in a narrow range during the last two months. A breakout above the upper band of the range, well beyond Nifty 25,500, needs positive triggers," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Such a trigger may come from an India-US trade deal with tariffs on India pegged at around 20 per cent.
“If this happens, can it trigger a sustained rally in the market? Unlikely. A sustained rally in the market needs earnings support,” he added.
On the sectoral front, IT, PSU Bank, FMCG, realty, media and PSE were major gainers in the morning trade. Auto, financial services, pharma, metal and energy were major losers.
In the Sensex pack, Adani Ports, Trent, Tech Mahindra, HDFC Bank, SBI, Infosys, ITC, HCL Tech and BEL were major gainers. M&M, Tata Steel, Tata Motors, Bajaj Finance, ICICI Bank, Eternal, TCS and Ultratech Cement were major losers.
According to analysts, the Nifty 50 witnessed a sharp rebound after retesting the crucial 25,000 support zone, signaling renewed bullish momentum.
“Fresh long positions can be considered only if Nifty sustains above the 25250 mark.Overall, while sentiment remains cautiously bullish, traders should keep a close eye on key technical levels and evolving global cues,” said Aakash Shah from Choice Equity Broking.
International markets were trading in the mixed zone. Tokyo, Hong Kong, Jakarta and Bangkok were in the green while Shanghai and Seoul were in the red. In the US, Dow Jones closed 0.98 per cent down on Monday.
On the institutional front, foreign institutional investors (FIIs) snapped their two-day selling streak, turning net buyers with purchases worth Rs 120 crore on July 15. Meanwhile, domestic institutional investors (DIIs) extended their buying streak for the seventh consecutive session, investing Rs 1,555 crore on the same day.
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