Mumbai: Domestic equity benchmarks opened flat on Wednesday tracking mixed global cues as investors remained cautious after foreign investors extended their selling streak to a fourth straight session.
Nifty opened at 22,665, down about 50 points or 0.23 per cent. Sensex began trading at 72,441.15, lower by 87.92 points or 0.12 per cent.
In early trade, the Nifty MidSmall IT & Telecom index was top sectoral gainer which rose more than 1 per cent.
Meanwhile, Nifty PSU Bank, Nifty Chemicals, Nifty Oil & Gas, Nifty Cement and Nifty Media also jumped up to 1 per cent.
In contrast, metal stocks were among the laggards with Nifty Metal falling 0.42 per cent. Healthcare and pharmaceutical indices were also marginally lower.
Market experts said elevated US bond yields were contributing to foreign investor selling, while the recent correction had created attractive valuations in parts of the Indian market.
“From the Indian investors’ perspective, this sharp correction in the market presents an opportunity. Largecaps with good growth prospects have reached attractive valuations,” they said.
Experts also noted that a correction in crude oil prices could trigger a market rally with largecap market leaders potentially leading such a move.
Technical analysts said the market could attempt to stabilise after its recent decline, with buying emerging around key technical levels.
Nifty had formed a hammer candle in the previous session, indicating buying interest at lower levels, while strength in select heavyweight stocks helped limit the decline.
The near-term structure has improved towards sideways to mildly bullish following the reversal from 22,600.
Immediate support is seen at 22,650-22,700, while resistance is placed at 22,950-23,000, according to the experts.
On Tuesday, foreign institutional investors (FIIs) extended their selling streak to a fourth consecutive session, offloading equities worth nearly Rs 10,000 crore, according to provisional data.
Domestic institutional investors (DIIs) provided support, buying equities worth nearly Rs 7,000 crore.
In addition, Asian markets were broadly positive in early hours despite a mildly weaker Wall Street session, while investors remained focused on upcoming US economic data and global market trends for further direction.
(IANS)
