After a weak start to the day, the market witnessed some recovery in the later half on September 29 supported by the buying in power, metal, realty and pharma names.
At the close, the Sensex was down 254.33 points or 0.43% at 59,413.27, and the Nifty was down 37.30 points or 0.21% at 17,711.30.
“Domestic market started on a very negative trend due to global sell-off on Tuesday & high crude prices. Spiking US treasury yields and slowing economy were impacting growth stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
“During the day, European & Asian markets recovered and crude prices stabilized. Indian growth-oriented sectors like Energy, Metals and Pharma also recovered strongly but selling continued on other sectors like private sector banks & consumption,” Nair added.
HDFC, Kotak Mahindra Bank, Asian Paints, UltraTech Cement and HUL were among the major losers on the Nifty. Coal India, NTPC, Power Grid Corporation, Sun Pharma and IOC were among the gainers.
The broader market has outperformed the main indices with BSE midcap index rising 0.62 percent and smallcap index gaining 0.4 percent.
On the sectoral front, the Nifty Metal, Pharma, PSU Bank and Energy indices rose 1.5-2.7 percent. However, Nifty Bank, Auto and FMCG indices ended in the red.
Stocks & sectors
On the BSE, the Power index jumped 3.5 percent, Metal index added 2.5 percent and Realty index was up 1.2 percent. However, selling was seen in the auto, bank, capital goods and FMCG names.
Among individual names, a volume spike of more than 200 percent was seen in Canara Bank, Escorts and HDFC AMC.
Long buildup was seen in Alkem, Torrent Pharma and Sun Pharma, while short buildup was seen in HDFC AMC, Tech Mahindra and Info Edge.
More than 200 stocks, including Coal India, Titan, Godrej Properties, Sun Pharma, NTPC, Power Grid, hit a 52-week high on the BSE.
Technical View
The Nifty formed a small bodied bullish candle on daily scale with longer shadows on either side indicates tug of war between bulls and bears.
“Now, it has to continue to hold above 17,700 zones, for an up move towards 17,850 and 18,000 zones, whereas support is placed at 17,600-17,580 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 30
Sachin Gupta, AVP, Research at Choice Broking:
After a negative opening, the benchmark index recovered the maximum loss and settled above 17,700 levels with a marginal loss of 0.2%, while Bank Nifty ended at 37,743 levels with a loss of 202 points.
Technically, the index is hovering above the Middle Bollinger Band formation and also moving above 50-SMA, which indicates a bullish presence in the counter. Moreover, the index witnessed a positive crossover in Stochastic. At present, the Nifty has immediate support at 17500 while resistance lies at 17,900/17,950 levels.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty continues to remain in a medium-term uptrend for targets of 18,500 and above; expect positive activity to continue for the initial part of the October series.
Immediate support is seen at 17,400 with buying on dips advisable. Select stocks in the Auto and BFSI space are showing positive buildup, while Metal stocks are expected to consolidate before any positive reversal.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed a highly volatile trading session, which was marked by weak global cues but benchmark Nifty once again took support near the 10-days SMA or 17,600 and reversed sharply. After yesterday’s sharp intraday fall, the index has formed an inside candle pattern which indicates indecisiveness between bulls and bears.
In the run-up to monthly F&O expiry, the market may continue with the narrow range activity. For day traders, 17,800 -17,850 would be the key resistance level, while 17,625-17,590 could act as strong support.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
