NEW DELHI: All sectors witnessed profit booking in Wednesday’s session, after a nine-day rally, led by losses in banks and metals that took benchmark indices lower amid fading hopes of a US stimulus and pausing of two vaccine trials.
Bluechip indices have rallied for nine straight days and were showing fatigue in the last few sessions. Private banks were the biggest drags in today’s trade while some support came from RIL and select FMCG names.
“The Nifty seems to be facing some selling pressures around the 11,950-11,975. While the trend remains positive, it is suggested that traders book profits on their long positions if 11,800 breaks. An entry at lower levels can always be used to re-enter the current uptrend. Considering the one-way rally we have witnessed, there could always be some profit booking. However, one should look at building long positions in this market,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Factors driving markets
Early stimulus hopes fade: Hopes for a new coronavirus relief package were dented as US House Speaker Nancy Pelosi rejected a $1.8 trillion proposal from the White House, saying it “falls significantly short of what this pandemic and deep recession demand.” Vaccine trials halted: Johnson & Johnson on Tuesday said it was pausing a COVID-19 vaccine trial due to a study participant’s unexplained illness. Eli Lilly and Co also said it has paused the clinical trial of its COVID-19 antibody treatment due to a safety concern.
How are bluechips doing
After opening with minor cuts, benchmark indices extended their losses as the session progressed. At 9.51 am, BSE flagship Sensex was down 306 points or 0.75 per cent at 40,319. NSE benchmark Nifty followed, falling 94 points or 0.79 per cent to 11,840. In the 50-share pack Nifty, Titan was the biggest gainer, up 1.01