Sensex up 68 pts; Nifty slips below 24,600 as new Closing Auction Session Framework takes effect
Mumbai, August 4
The Indian benchmark indices opened on a muted on Tuesday with Sensex and Nifty opening with a gap-down, erasing gains from Monday's bull run. Sensex opened at 79,132.97 as against previous close of 78,639.03 while Nifty opened at 24,703.90 as against 24,774.30 following the introduction of a new Closing Auction Session framework.
CAS, which was implemented on Monday, pools all buy and sell orders at the end of the trading day and identifies a single price at which the maximum number of shares can be traded. This price is then set as the stock's closing price.
Sensex was trading at around 78,707.73, up 68.70 points or 0.09 per cent while Nifty was trading at around 24,594.60, down 179.70 points or 0.73 per cent at the time of reporting. Correction was seen in all broad market indices; sectorally, most indices traded in the red with Nifty Relty, IT and Cement emerging as top laggards, declining over a per cent during the early morning trade.
On BSE, Asian Paint, Tata Steel, Trent, Kotak Bank, Bajaj Finance, Adani Ports, HCL Tech, Power Grid, BEL, M&M, LT among others were the top gainers. Hindustan Unilever, TCS, Tech Mahindra, Reliance, NTPC, among others were the top drags.
Likewise, on NSE, Adani Ports, Trent, Hindalco, IndiGo, Tata Steel, among others, were the top gainers while ITC, Sun Pharma, BEL, Tech Mahindra, among others, were the top drags. In the commodity market, Brent crude was trading at around USD 84.82 per barrel while crude oil was trading at around USD 81.04 per barrel at the time of reporting. At the same time, gold was trading at around USD 4,054.94.
As per market analyst Vipin Dixena, "Today's market is reflecting a cautious undertone despite supportive domestic factors. Investors appear to be taking a wait-and-watch approach as they assess the ongoing Q1 earnings season and key macro developments.
"While the broader trend remains positive, I don't expect a broad-based rally until the market gets a fresh trigger. I believe stock-specific opportunities will continue to outperform, with earnings playing a decisive role in determining near-term price action," he said.
Rajesh Palviya, Head of Research, Axis Direct, noted, "From a technical perspective, the market structure continues to remain positive as long as the Nifty holds above the 24,500 support zone. Immediate resistance is placed near 24,900, and a decisive close above this level could pave the way towards 25,150. After four successive sessions of strong gains, some consolidation or profit booking at higher levels would be healthy, though the broader trend remains constructive. Investors should continue to monitor crude oil prices and geopolitical developments in the Middle East, which remain the key external risks for global and domestic markets."
— ANI
Reader Comments
As a retail investor, I honestly don't understand all these technical terms like Closing Auction Session. 😅 But I do understand that my IT stocks are taking a hit today! TCS, Tech Mahindra all down. Also, gold at 4,054 USD - that's crazy expensive. Is it a good time to invest in gold or wait? Would love some expert advice here.
Market is just consolidating, nothing to worry about. After four days of bull run, some profit booking is natural. The analysts are right - 24,500 is the key support for Nifty. If it holds, we could see 25,150 soon. But honestly, with Middle East tensions and crude at 84 USD, external factors remain a concern. Also, Adani Ports and Trent performing well today - good signs for infrastructure and retail sectors.
Interesting to see the market's reaction to this new Closing Auction Session. I work in finance in the US and we've had similar mechanisms for a while. It does prevent end-of-day manipulation. The Indian market is maturing with these reforms. Though today's muted response shows investors are still a bit cautious about the Q1 earnings season. That said, the fundamentals look strong.
I'm a bit disappointed that Hindustan Unilever and Reliance are dragging the market. These are usually the safe bets! But I guess even blue-chips need correction sometimes. The CAS thing is confusing for new investors like me - they should have explained it better before implementing. Also, why is only Nifty down while Sensex is up? Can someone explain this divergence? 🤔
D We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.