Mkt hovering in non-directional trading

Mumbai On Wednesday, the benchmark indices witnessed selling pressure at higher levels as BSE Sensex was up by 12 points. Among sectors, Digital and Reality indices gained over one per cent whereas intraday profit booking were seen in banking and financial stocks. Technically, after a gap-up opening, the index took the resistance near 65,450 and reversed. From the day, highest point the market corrected over 400 points.

“We are of the view that, the current texture of the market is non-directional for the day traders now, fresh uptrend rally possible only after 65,200,” says Shrikant Chouhan of Kotak Securities.

Above which, the index could rally till 65,450-65,600 points. On the other side, below 64,900 the selling pressure is likely to accelerate. Below 64,900pts, the index could retest the level of 64,700-64,600pts.

Vinod Nair, head of research at Geojit Financial Services, says: “Positive sentiment initially propelled domestic equities, buoyed by softer US labour market data that caused a retreat in US bond yields, alleviating concerns about rate hikes. This positive outlook was reinforced by Chinese banks’ move to reduce existing mortgage rates, favourably impacting Indian metal stocks.”

However, gains were tempered as the day progressed, primarily due to weakness in global markets attributed to lacklustre economic data from Europe. Banking stocks bore the brunt of this downturn, while mid- and small-cap segments displayed resilience amid the market dynamics.