Sensex rangebound; Nifty above 7,900-mark; Dr Reddy’s top gainer

Sensex rangebound; Nifty above 7,900-mark; Dr Reddy’s top gainer

The S&P BSE Sensex opened higher in trade on Wednesday, while broader CNX Nifty was trading above its key support level of 7,900 ahead of derivatives contracts expiry later this week.

At 9:20 am, the 30-share index was trading at 26,128.03, up 48.55 points, while broad-based 50-share index was quoting 7,939.45, up 10.50 points.

Market breadth remained positive with 21 of the 30 Sensex components trading in green.

“Traders should keep booking profits once the Nifty reaches levels of 7950-7970. On the flipside, 7852 would now be seen as an immediate support level for the index. At this juncture, a prudent strategy would be to continue with a stock centric approach,” said Angel Broking in a research note.

The stock of Dr Reddy’s was the best performing Sensex stock and gained over 1 per cent.

Shares of United Spirits fell over 3 per cent after the company said its networth has eroded by more than 50 per cent of its peak networth due to a host of reasons, including provisions on advances to its erstwhile promoter group firm United Breweries (Holdings) Ltd.

Among Asian markets, China’s Shanghai Composite was trading with a downtick of 0.07 per cent, while Hong Kong’s Hang Seng was quoting 0.41 per cent lower. Japan’s Nikkei bucked the trend to trade with gaines of 0.21 per cent.

Overnight, US stocks ended higher boosted by tech stocks such as Apple and Amazon. The Dow Jones industrial average ended 1.1 per cent higher at 17,720.98 points while the S&P 500 gained 1.06 per cent to 2,078.36. The Nasdaq Composite added 1.33 per cent to 5,107.94.

 

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