Sensex Pares Gains To Trade Lower, Nifty Near 10,750; Reliance Industries Scales New High

A day after surging over 260 points, the market benchmark index S&P BSE Sensex oscillated between gains and losses on Thursday. After having opened 97 points higher at 35,644 on Thursday, Sensex traded in red in the late morning trade. Also, NSE's Nifty50 after opening 36 points higher at 10,808, slipped to 10,760 in a couple of hours. The indices, however, pared initial gains soon after. At 11.35 am, Sensex traded at 35,529 points, 18 points or 0.05 percent, lower. Nifty, at the same time, fell 6 points,or 0.06 per cent, to trade at 10,766. Stocks of Reliance Industries (RIL) continued the upward trajectory, scaling a new peak of Rs 1,031 by surging 1.08 per cent, reported Press Trust of India.

Major gainers among Sensex stocks are Adani Ports (2 percent), ICICI Bank (1.62 per cent) and Tata Steel 0.72 per cent). At the same time, major laggards are PowerGrid (1.59 percent), ONGC (0.83 per cent) and Wipro (0.79 percent). Among the Nifty stocks, the major gainers turned out to be Zee Entertainment (2 per cent), Adani Ports (2 per cent) in the morning trade, while the major laggards are Bharti Infratel (2.9 percent) and Hindustan Petroleum Corporation (1.9 per cent).

The Indigo share might see an uptick after it clarified that it didn't receive summons from Enforcement Directorate for alleged FEMA (Foreign Exchange Management Act) violation. Also, Jet Airways stock will be eyed after it announced that it has taken the delivery of its maiden 737 Max aircraft out of the 150 on order from Boeing.

Today will be second day for the RITES IPO as well as for the Fine Organic Industries IPO. 

Technical analysts, however, believe that upside above 10,900 is unlikely today since the 10,860-10,900 level happens to be the strong resistance. Dyaneshwar Padwal, AVP, technical analysis of KIFS Trade Capital explains: "Key benchmark index nifty is unfolded in to corrective pattern where in tug of war between bulls and bears lead to the consolidation. On higher side 10,860-10,900 could be strong resistance where in tremendous selling pressure has been observed." When it comes to global markets, Asian shares crept ahead on Thursday as a lull in the Sino-US trade tussle and talk of more Chinese stimulus helped calm nerves, while tensions in the oil market grew ahead of an OPEC meeting that could expand the supply of crude. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent, while Japan's Nikkei added 0.7 percent.

Futures for the S&P 500 added 0.4 percent as investors waited for new developments on global trade. After a hesitant start, Chinese markets moved into positive territory as Shanghai blue chips rose 0.6 percent.

The mere absence of new threats from President Donald Trump on tariffs was enough to stem recent selling, with investors clinging to the hope that all the bluster was a ploy which would stop short of an outright trade war.

"Many participants see the Trump Administration's hard line as part of the negotiating strategy," said Richard Grace, chief currency strategist at CBA.

BSE Sensex fell on Wednesday by 261 points to close at 35,547. At the same time, the NSE's Nifty50 shed 0.58 per cent to end at 10,772 points on Wednesday. (With inputs from Reuters,PTI)