Mid-day Mood| Nifty, Sensex flat ahead of GDP data, banks under pressure

The Sensex and the Nifty traded flat around noon on February 29 ahead of the declaration of India's Gross Domestic Product (GDP) later in the day.

The market also took cues from the global markets which remained weak ahead of the release of the personal expenditures price index data due on Thursday. The data will give cues to the Federal Reserve's possible rate-cut trajectory.

The broader market also witnessed slight selling pressure with the BSE midcap index and BSE smallcap index down 0.1 percent and 0.4 percent, respectively.

Around noon, the Sensex was up 113.17 points or 0.16 percent at 72,418.05, and the Nifty 50 was up 16.70 points or 0.08 percent at 21,967.90. About 1,230 shares advanced, 1,943 declined, and 81 shares remained unchanged.

Sectoral Trends

The financial services sector was down with the State Bank of India, Bajaj Finance, Axis Bank, and HDFC Bank as the worst hit stocks.

Fundamental View

Markets are cautious ahead of the release of India’s Q3 GDP data, said Siddhartha Khemka, the head of retail research at Motilal Oswal Financial Services Ltd. The US Q4 GDP preliminary reading and core personal consumption expenditure (PCE) data would keep investors busy, Khemka said adding that he expects the market to remain volatile amid key events.

Technical View

Ahead of the expiry on February 29, analysis of the Nifty Weekly Option OI Distribution indicates significant open interest of approximately 1.60 crore shares at the 22200 call strike, while the 21800 put strike holds substantial open interest of approximately 58 lakh shares, said Shrey Jain, founder and CEO of SAS Online.

Jain expects Nifty 50 to find support at 21800 level. "While Nifty has historically bounced back from similar levels, a drop below 21700 could precipitate a sharp decline in the near term," he said. Jain sees the immediate resistance of Nifty 50 within the range of 22150-22200 levels.

Key Nifty gainers

Mahindra & Mahindra, Maruti Suzuki, Tata Consumer Products, and Adani Enterprises

Key Nifty losers

Apollo Hospitals, Bajaj Auto, LTIMindtree, Eicher Motors, and Eicher Motors

Key Sensex gainers

Mahindra & Mahindra, Maruti Suzuki, Nestle India, Titan Co, and Asian Paints

Key Sensex losers

Axis Bank, Power Grid Corporation of India, Tata Motors, HDFC Bank, Hindustan Unilever

Stock moves

NBCC: Shares traded higher intraday after the company executed the e-auction of approximately 61,000 sqft commercial built-up area at Ayurvigyan Nagar in New Delhi.

Bajaj Auto: Shares fell around 4 percent as they traded ex-buyback. The company's board had approved a Rs 4,000-crore share buyback in January, the record date for which was February 28.

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