After making a smart recovery in the previous session, Indian benchmark indices had a volatile day on September 22, with a rally in realty, auto, IT and metal names helping indices to narrow losses at end of the day.
At close, the Sensex was down 77.94 points, or 0.13 percent, at 58,927.33, and the Nifty was down 15.30 points, or 0.09 percent, at 17,546.70.
“Despite hopeful signs in the global markets, domestic main indices traded in a narrow range to give away its early gains in today’s volatile session. However, the broad market was robust barring banks, all major sectors were in demand and media, metals and realty outperformed,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Realty stocks were in focus owing to an increase in property registrations in September while easing jitters over the Chinese economy bolstered metal stocks. Investors traded cautiously awaiting the outcome of the FOMC meeting that will clear the air regarding Fed’s tapering plans.” The Federal Reserve meeting concludes on September 22.
The broader market outperformed the benchmarks, as BSE midcap and smallcap indices added over a percent each.
On the sectoral front, Nifty auto and metal indices rose a percent each, while some selling was seen in the FMCG and banking names.
Stocks & sectors
On the BSE, except bank and FMCG, all sectoral indices ended in the green. The realty index gained over 8 percent and auto, metal indices were up a percent each.
Among individual stocks, a volume spike of more than 900 percent was seen in Nalco, SAIL and Zee Entertainment.
Long buildup was seen in Sun Pharma, Cummins and Balkrishna Industries, while short buildup was seen in Adani Ports, SAIL and Torrent Power
More than 200 stocks, including Sunteck Realty, DLF, PVR, Inox Leisure and Escorts, hit a 52-week high on the BSE.
Technical View
The Nifty formed a small-bodied bearish candle on the daily scale and closed flattish but was hovering near the highs of the previous session.
“Now it has to continue to hold above 17,500 zones, for an up move towards 17,650 and 17,777 zones, whereas support is placed at 17,350 and 17,272 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 23
Rohit Singre, Senior Technical Analyst, LKP Securities
The Nifty moved in a very narrow range and closed the day at 17,547 with minimal loss, forming a small bearish candle on the daily chart.
The index has support around 17,500-17,430 and any dip near the levels will be a buying opportunity, with an immediate stop below 17,450 and resistance at 17,600-17,660 zone.
One can lock trading long gains around the said levels. The overall range is still in between 17,300 and17,800 and either side breakout will decide the final direction.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty saw some lackluster movement and an attempt to hold 17,500. For the short term, it will be important for the market to sustain above the 17,450-17,500 support zone.
If it holds the level, it can move higher to 17,850. Momentum indicators like RSI and MACD suggest that market breadth will improve, further strengthening the short-term bullish outlook.
Sahaj Agrawal, Head of Research-Derivatives, Kotak Securities
The Nifty remains in a medium-term uptrend for targets of 18,000 and above. Any meaningful correction is a good opportunity to buy. Support for the September series is seen at 17,325, while resistance is expected at 17,600-17,770.
A breach of 17,325 on the closing basis is expected to result in selling pressure to sub 17,000 levels. Auto and energy stocks traded with a positive bias, while metals are expected to consolidate before resuming uptrend.
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
After a robust pullback rally, the Nifty witnessed a narrow-range activity near the 17,600 resistance level. On September 22, after a muted opening, the Nifty hovered in the 17,525-17,610 range.
It tried to go past the resistance of 17,600 but failed to clear the hurdle due to tepid global cues and lack of follow-through buying activity.
The intraday trading setup suggests 17,600-17,625 will act as the key resistance level for the day traders and below it, a quick intraday correction till 17,500-17,450 is not ruled out.
On the flip side, 17,625 could be the range breakout level for the day traders and above the same, the breakout continuation formation is likely to continue up to 17,665-17,700-17,725 levels.
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