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Taking Stock | Market ends lower amid weak global cues; mid, smallcaps outshine –

Investors continued offloading their positions in largecaps as frontline equity indices the Sensex and the Nifty ended lower on September 13 amid mixed global cues.

The recent trend of selling largecaps and picking quality mid and smallcaps continued as the second rung indices—the BSE midcap and smallcap—ended in the green for the third consecutive session.

The market opened lower and remained in a range, enduring bouts of volatility, throughout the session.

The 30-share pack Sensex closed 127 points, or 0.22 percent, lower at 58,177.76, while the Nifty ended the day at 17,355.30, down 14 points, or 0.08 percent.

The BSE midcap index closed 0.32 percent higher, while the smallcap index settled with a gain of 0.80 percent.

Shares of Reliance Industries, ICICI Bank, Hindustan Unilever, HDFC Bank and Mahindra & Mahindra were the biggest Sensex laggards.

On the other hand, TCS, Bharti Airtel, Bajaj Finserv, Tata Steel and Maruti Suzuki emerged as the top Sensex gainers.

Experts said indices remained rangebound as investors’ risk appetite was subdued after the strong rally of the last few weeks which saw valuation of many stocks shoot up.

Sectors and stocks

The sectoral picture was mixed. On the BSE, metal, utilities and basic materials ended a percent higher each, while the energy fell more than a percent. The BSE Bankex fell 0.50 percent.

More than 250 stocks, including Bharti Airtel, HCL Tech, Hindalco, Havells India, Dish TV India, APL Apollo Tubes, L&T Technology Services, Mindtree, Persistent Systems, Nalco, Voltas, Tata Elxsi and Zydus Wellness, hit their 52-week highs in the intraday trade on BSE.

Nearly 400 stocks, including Somany Home Innovation, Borosil Renewables, IIFL Finance, Reliance Power and Hindustan Construction Company, hit their upper circuits in intraday trade on BSE.

Tech View

Profit-taking in select frontline stocks amid weakness in other Asian markets weighed on Indian bourses.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities, said over the last four days, the index has been hovering between 17,250 and 17,435. At the same time, the Nifty has been taking support at 17,250.

“As long as the index is trading above 17,250, the bullish formation is likely to continue up to 17,450-17,500 levels. However, trading below the same could possibly trigger correction up to 17,200-17,150 levels,” said Chouhan.

Rohit Singre, Senior Technical Analyst, LKP Securities, said the Nifty formed a Doji candle on the daily chart, signifying indecision in the market.

“Good support zone for the index is coming near 17,300-17,250 zone and if it manages to hold the above said levels, we may see the next move towards 17,430-17,500 zone. Fresh buying can be seen above 17,500,” said Singre.

It remained to be seen if the market goes sideways, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.

“If that were to happen, we will be locked between 17,250 and 17,450. If we can get past 17,450, we will resume the uptrend and achieve higher targets. A buy on dips would be a good strategy to implement,” said Hathiramani.

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