17 May , 2024 By : Debdeep Gupta
Benchmark indices Sensex and Nifty 50 opened lower on May 17, tracking global markets, even as concerns over election results continue to weigh. However, analysts are optimistic about India's growth story in the long term.
"The only caveat here is we are in the midst of major general elections, and hence, the volatility is likely to remain on the higher side," said Sameet Chavan, Head of Research, Technical and Derivative at Angel One. He added that global developments need to be tracked closely.
India VIX was up nearly 1 percent at 20.2.
At 9:23 AM, the Sensex was down 125 points, or 0.2 percent, at 73,538, and the Nifty 50 was down 40 points at 22,363. About 1,806 shares advanced, 784 shares declined, and 114 shares were unchanged.
IT and financial services stocks were the major laggards. Meanwhile, the broader markets outperformed, with the BSE Midcap and BSE Small cap rising 0.5 percent each.
"The continuity of the government is crucial. A change in administration would introduce new processes and policies, which markets typically view unfavourably. However, if the incumbent government retains power, it would alleviate concerns in that regard," explained Sandip Agarwal, Research Analyst.
"While the markets are in a positive zone, they are currently undergoing a consolidation phase," said Kranthi Bathini, Director of Equity Strategy at Wealth Mills Securities. He identified the range of 22,200-22,700 as significant for the Nifty 50 in the near to medium term.
Although analysts express concern about the selling by FIIs, they acknowledge that the market has been sustained from further decline by the support from DIIs.
The Volume Weighted Average Price (VWAP) suggests a trading range for May 17 between 22,210 and 22,520, according to Kotak Securities.
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