The market took a hit on April 17 after opening post the extended weekend as the earnings performance of a few companies so far has disappointed the Street. As of 10.20 am, the Nifty was down 1 percent to 17,645.
Incidentally, the Nifty has seen some buying at low levels which has helped the index shave off some of the losses. Some traders have also taken bullish positions as they believe the Nifty has already hit the day’s low.
“I have taken a long position with day’s low as stop loss,” said Ankush Bajaj, a Chhattisgarh based derivatives trader. “Volatility will be high during the day.”
On the options front, call writers were more active. The 17700 level saw the biggest call accumulation. That means traders see it as a large hurdle for the index for the day. Call writing was also seen at 17,800.
The market movement today also marks a break from last week’s trend when buying was seen on most days. However, most traders are confident that the overall contour of the market is positive and that the fall today is just a blip on the radar.
IT sector was the worst performing one as the earnings performance of Infosys disappointed the market. Thus, bears were seen hammering Infosys, LTIMindtree, L&T Tech Services, Coforge Mphasis and others.
HDFC Bank which also came out with its earnings over the weekend saw a short buildup as traders took bearish bets on the counter.
FMCG giants Nestle and Britannia were favourites among bulls for the day. Smaller banks such as RBL Bank, AU Small Finance Bank also saw bulls taking positions in them.
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