Markets remain choppy on back of weakness in oil & gas and power sectors despite Asian resource shares rally on surge in commodity prices. The Sensex has turned negative for the second time, the benchmark is currently trading lower by 10 points at 20,677 and the Nifty has also dipped into the red, down 2 points to 6230.
While markets are range bound today, analysts expect the upside on Nifty to be capped at 6400. "There is a shift in broad range of the market, 5800 will act as a strong support and 6400 level could act as a resistance," according Ashish Chaturmohta, VP, Anand Rathi Securities who tracks derivatives.
Among the sectoral indices, IT is up 1% amd continues to lead the gains. "Many frontline IT counters like TCS ,Wipro and HCL Tech are seeing good built up of long positions, these stocks may see 5-7% upside from current levels," Chaturmohta said.
Besides, BSE realty sector is in limelight today led by gains in Indiabulls Real Estate, up 4%, followed by Sobha Developers, Unitech, HDIL, all up over 2% each, pulling the index up 1.6%.
"Among the other sectoral indices banking, metals and financials have a higher open interest activity and lower open interest is seen for infrastrutcture and telecom sectors," Chaturmohta added.
BSE oil & has and power indices are trading in the negative despite sharp surge in commodities which has pulled Asia higher.
BSE Oil & Gas and Power index are trading in the negative despite sharp surge in commodities which has pulled Asia higher. BPCL and HPCL have fallen by 3/4% and 1.2% each, followed by Cairn India, down 1%; from the power space, NTPC has dipped 1.2%, Reliance Power and BHEL have fallen 0.8% each.
The gainers in the Sensex stocks are Tata Steel and Wipro, up over 2% each, followed by Infosys and Jindal Steel, have added 1.2% each.
The losers are L&T, followed by Reliance Communications, NTPC, Cipla down over 1% each.
Market breadth is marginally positive. 1413 stocks have advanced while 1405 stocks have declined.
