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Markets turned choppy in early trades oscillating between positive and negative terrain even as select index heavyweights helped offset losses in FMCG majors and private banks.
At 9:35AM, the 30-share Sensex was down 32 points at 28,812 and the 50-share Nifty was down 10 points at 8,747.
“If the support at 8,700 breaks, we will see lower supports being tested at 50-point intervals on the Nifty. A break below 8,700 would imply the current short-term correction could turn into an intermediate correction. The 200-Day Moving Average is in the 8,050-8,100 zone and the previous intermediate correction saw support come in at 7,950-8,000. A move below that level would be taken seriously, in that it would indicate a potential trend reversal in the long-term bull market.” points out Devangshu Datta, independent technical analyst and market expert.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, as per provisional data.
Besides, investors would keenly await data on industrial production for January and consumer price index for February scheduled to be announced on Thursday.
Developments in the ongoing session of Parliament will be closely watched.
GLOBAL MARKETS
The US dollar neared multi-year highs on the yen and euro in Asia on Tuesday amid starkly diverging outlooks for interest rates globally, while markets looked past a surprisingly high reading on Chinese inflation.
The dollar climbed to a three-month high at 121.71 yen and came within a whisker of the December peak at 121.84. A break would take it to territory not visited since July 2007.
A lower yen is generally viewed as positive for Japan's exports and corporate profits, and the Nikkei added 0.5%.
Other Asian markets were mixed with Australian stocks up 0.5%, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%.
Chinese consumer prices topped expectations with an annual rise of 1.4% in February, although much of the pick up was caused by seasonal volatility in food prices.
STOCKSHDFC and HDFC Bank were among the top Sensex losers while profit booking was seen in FMCG major Hindustan Unilever after the stock gained nearly 3% while ITC was down 0.6%.
Among others Axis Bank and Gail were the other Sensex losers in early trade.
Meanwhile, Tata Motors, Bharti Airtel, Cipla, Infosys, L&T and BHEL were among the top Sensex gainers.
Further, the initial Public offer (IPO) of Adlabs Entertainment in the price range of Rs 221-230 per share will open on March 10 and close on March 12, 2015.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.6-0.7% each.
Market breadth was strong with 1,073 gainers and 539 losers on the BSE.
