Sensex, Nifty open marginally lower dragged by FMCG stocks; HDFC Bank up 3%

The S&P BSE Sensex was down 70.87 points to 81,153.88, while the NSE Nifty50 lost 58.90 points to 24,795.15

Benchmark stock market indices opened marginally lower on Monday led by a decline in consumer goods stocks. The market also witnessed some profit booking which resulted in a slight fall.

The S&P BSE Sensex was down 70.87 points to 81,153.88, while the NSE Nifty50 lost 58.90 points to 24,795.15 as of 10:35 AM.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that with the US markets setting new record highs, the global stock market rally appears intact. The steady decline in crude and stability in the US bond yields impart resilience to the stock market despite the lingering tensions in the Middle East.

"The hope raised by the Chinese stimulus and the cheap valuations of Chinese stocks have the potential to sustain the ‘Sell India, Buy China’ tactical trade for some more time. This presents an opportunity for medium to long-term investors. Of the total FII AUM of $930 billion about 28% is financials which are facing the brunt of FII selling. The sustained FII selling has rendered the valuations of financials attractive in an otherwise overvalued market. More importantly, the financial segment is doing well and is in the pink of health. Q2 results of leading banking names like HDFC, Kotak and Axis indicate improving prospects," he added.

Kunal Kamble, Sr. Technical Research Analyst at Bonanza said that the Nifty Index has formed a piercing pattern at support, indicating a potential pause in the short-term negative trend.

"For the index to continue its downward momentum, it must close below the low of 24,567. A move towards the 25,000 level, which has been acting as a magnet for the index, can be expected. Use dips as buying opportunities as long as the index holds above the 24,567 level, with an anticipated upward move towards 25,000, followed by 25,300," he added.