Market Morning: Sensex, Nifty off to a muted start, Sun Pharma, KEI in spotlight

Nifty and Sensex got off to a slow start, with Nifty50 trading at 23,613.7 points, up by 0.2%, and Sensex up by 0.24% at 77,651.53 points, as of 9:35 am. Amongst sectoral indices, auto, financial services, FMCG, PSU and private bank continued to trade in red. On the other hand, IT, media, metal and pharma opened on a positive note.
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After receiving a warning letter from the USFDA yesterday, stocks of Sun Pharma inched up by 0.36% during early morning trade today o touch Rs 1,476.25. The pharma major informed NSE today that it has signed a non-exclusive patent licensing agreement with Japanese pharma company Takeda for introducing Voltapraz (Vonoprazan), a new gastrointestinal drug in India.

Stocks of KEI Industries are set to be in action today, given that the company lost production of around Rs 10 crores due to strikes and disturbances seen at its factories in Rakholi and Chinchpada. The situation has since normalised, and the company will ramp up production in the days to come to compensate for the loss. During early morning trade, the stocks of the electric cable and wire manufacturer were trading 1.51% up at Rs 4,488.95

According to Aditya Gaggar, Director of Progressive Shares, "for the past couple of days, the Index has been oscillating in a range; breakout on either side will provide a clear direction. As per anticipation, a strong rally was noticed in all the fertilizer counters. Some uptick can be seen but we believe it will eventually correct in the form of profit booking as in the lower timeframe they are in an extremely overbought condition, so it's better to book certain parts of profits."

"From the IT sector, Sonata Software looks strong. Selective buying can be seen in the Metal sector. We have identified a few stocks from the Mid and smallcap segments that are likely to rally in the short term namely Astec Life Science, GHCL, Jay Bharat Maruti, Mahindra Holidays, Ramky Infra, and Usha Martin", he continued.

As per Shrikant Chouhan, Head Equity Research, Kotak Securities, "From last couple of days market witnessing narrow range activity which indicates indecisiveness between the bulls and the bears. We are of the view that, the current market texture is non-directional perhaps traders are waiting for either side breakout. On the higher side, 23,680/77,800 would be the immediate breakout level while below 23,450/77,100 the selling pressure is likely to accelerate. Above 23,650/77,700, the market could move up till 23,750-23,850/78,000-78,200".