The market gave up most of the intraday gains amid volatility to end flat on September 27. The Sensex closed 29.41 points, or 0.05 percent, higher at 60,077.88, and the Nifty moved two points up, or 0.01 percent, to 17,855.10.
During the day, the Sensex touched a fresh high of 60,412.32 and the Nifty 17,947.65 but failed to hold on to the gains.
“Due to profit booking in IT, pharma and FMCG, domestic markets failed to uphold their winning streak to close flat in a volatile session,” said Vinod Nair, Head of Research at Geojit Financial Services.
Realty stocks continued their rally on positive developments in the sector, while the sentiment in the auto sector was lifted on the expectation of better sales numbers for September, he said.
“The market is also awaiting the release of August’s core sector output data and September’s manufacturing PMI data this week,” Nair said.
Maruti Suzuki, Tata Motors, M&M, ONGC and Hero MotoCorp were among major gainers on the Nifty, while losers included HCL Technologies, Divis Labs, Wipro, Tech Mahindra and Bajaj Finserv.
The broader market, too, largely remained unchanged, with BSE midcap and smallcap indices closing flat.
On the sectoral front, the auto index rose over 3 percent and the energy index added 1 percent. The IT index shed nearly 3 percent and pharma was down a percent.
The Nifty Bank, however, ended almost a percent higher after touching a new high of 38,355.20 intraday.
Stocks & sectors
On the BSE, the auto and realty index added nearly 3 percent each. IT, FMCG and healthcare stocks, however, saw some selling.
Among individual stocks, a volume spike of more than 200 percent was seen in Indiabulls Housing Finance, Amara Raja Batteries and IRCTC.
Long buildup was seen in Ashok Leyland, Indian Hotel and ONGC, while short buildup was seen in Ipca Laboratories, Pfizer and L&T.
More than 200 stocks, including Reliance Industries, Oberoi Realty, Hindalco Industries, Tata Motors Ltd – DVR, DLF, Inox Leisure, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the daily scale, with longer lower shadow indicating that declines were bought.
“Now, it has to continue to hold above the 17,800 zones for an up move towards 18,000 zone, whereas support is placed at 17,777 and 17,650 zones,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 28
Rohit Singre, Senior Technical Analyst, LKP Securities
The Nifty opened higher but was unable to hold the gains and saw profit booking. The index managed to close the day at 17,855 and formed a bearish candle for the second consecutive day.
A strong base has been formed near 17,800-17,740, above which the northward movement may continue.
Any dip around the said levels can use as to add fresh longs, keeping the stop out level below 17,700. A strong hurdle is coming near 17,930 followed by 18,000 where one can look for to lock their long gains.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The market witnessed some volatility after the Nifty breached 17,850. The Nifty has to sustain above 17,850 to gain momentum and move towards 18,000.
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