Benchmark share indices turned range-bound in morning trades on Thursday with 50-share Nifty holding 8,100 levels amid consolidation.
The market gained momentum during the early morning trade but was unable to retain it with two-wheeler stocks under pressure post demonetization.
Both Bajaj Auto and Hero Moto fell more than 2% each in Thursday’s trade.
At 11:00 am, the 30-share index was trading at 26,305, up 6 points, while the broad-based 50-share index was quoting 8,106, down 5 points. The broader markets were also trading flat with BSE Mid Cap down 0.03% and BSE Small cap down 0.28%.
The market breadth was marginally weak as about 1268 shares declined against 822 advancing shares on the BSE.“Nifty is trading below the downward sloping channel suggesting the cautious view. Nifty may witness selling pressure on every rise towards 8400- 8440 levels. Going ahead, we may see pull back rally towards 8400 levels, whereas 8070 may act as a support. Overall market view is cautious trade with a strict stop loss,” Anand Rathi Reseach said in a technical note.
“During last two days market attempt to recover from the lows but fails to do so as selling emerges on rallies. It seems bears are in control of the market. We expect market to remain subdued on going ahead as demonetization move is set to impact short term consumption cycle and worry over FII flows,” said Abnish Kumar Sudhanshu of Amrapali Aadya Trading & Investments.
Tata Motors was the top gainer in both the headline indices followed by Axis bank (1.58%).
SBI was up 2.5% after the company cut interest rate on bulk deposits by 25 bps across tenors effective Nov 17.
Voltas fell 6.67% post reporting a 7% decrease in its Q2 revenue while EIL was up 5% after a 21% rise in Q2 net profit.
Capitalstars Financial Research Private Limited is a research house and an investment advisory carrying out operations in the Indian Equities and Commodity market.We also provide 2 days free trial to our client.Join our services and trade with us.