Bearish global cues, along with upcoming retail inflation data point subdued India's key stock indices during mid-afternoon trade session on Monday.
Initially, both key indices -- S&P BSE Sensex and NSE Nifty50 -- had a flat-to-negative opening. Globally, Asian markets traded on a mixed note on the back of disappointing international macro data points.
At 1.11 p.m., S&P BSE Sensex traded at 58,238.51 points, lower by 66.56 points or 0.11 per cent from its previous close. Similarly, NSE Nifty50 traded lower. It was down to 17,357.20 points, lower by 12.05 points or 0.069 per cent from its previous close.
"Nifty opened flat to negative due to dampened global cues and breached its previous day's low levels in the initial tick. However recovery can be seen as buying on declines is intact. Consolidative move is visible and volatility is slightly on the rise above 14 zones," said Chandan Taparia, Technical and Derivatives Analyst at MOFSL.
"Today profit booking decline can be witnessed in Banks, Financial Services, Auto and Pharma whereas other sectors including Media, Metal, IT, Realty and FMCG space is trading in the positive territory."
According to Gaurav Garg, Head of Research, CapitalVia Global Research: "The Indian benchmark started with a flat opening with negative bias in the market. Asian markets made a sluggish start packed with major US and Chinese economic data. Traders will get concerned with the rise in unemployment rate, periodically published by National Statistical Office (NSO)."
"Investors will remain cautious about the key inflation data due later in the day. Sentiments may get optimism as RBI Governor said many fast indicators are showing an uptick in economic activity and the Reserve Bank is quite optimistic about its 9.5 percent GDP growth estimate for FY 21-22 at present."
Slump in the shares of index-heavyweight Reliance Industries (RIL) also pulled the indices lower at the opening. Around 10.15 a.m., RIL shares on the BSE were trading at Rs 2,373, lower by Rs 52.45 or 2.16 per cent from their previous close.
Sensex opened at 58,262.11 and has touched an intraday high of 58,314.64 and a low of 57,944.63 points.
Manish Hathiramani, technical analyst with Deen Dayal Investments said: "The markets opened on a soft note this morning. This does not come as a surprise considering the sharp run up with no correction. The support for the Nifty is currently at 17,250 and as long as that holds, traders can consider a buy on dips approach for a target of 17,450."
"There is every possibility the Nifty also becomes sideways and trades within this range of 17,250-17,450," he said.