When the global market structure held firm, investors were nervous as markets fluctuated at all-time highs and elevated valuations
The markets scenario
In a highly volatile session, benchmark indices generated gains amid buys in index-heavy RIL, bank and auto stocks. Even when the global market structure held firm, investors were nervous as markets fluctuated at all-time highs and elevated valuations.
Overall, the BSE Sensex fluctuated at 525 points and levelled off 29 points higher at 60.078 for the day. Meanwhile, the NSE Nifty closed at 17,855, just 2 points higher. During the day, the BSE Sensex managed to hit a new high of 60,412.
In the 30pack index, Maruti, M&M, Bajaj Auto and NTPC were the top winners with a 26 per cent lead, while HCL Tech, Tech Mahindra, Bajaj Finserv and Infosys were the biggest losers with up to 4 per cent.
The broader markets lagged the Sensex benchmark as the BSE Midcap closed unchanged, and the BSE Smallcap lost 0.13 per cent.
As a result, the Advancedecline index slightly favoured sellers. Meanwhile, market volatility remained high as India’s VIX rose 6.67 per cent to hit 18.05.
At the sector level, defensive statistics fell out of favour, as Nifty IT fell 2.88 per cent, followed by Nifty Pharma, which lost 0.93 per cent, and Nifty FMCG, which lost 0.90 per cent.
On the other hand, Auto stocks were the most significant buzz, with the Nifty Auto package closing 3.22 per cent higher. Nifty Realty and Media were among the other top winners.
While real estate stocks continued to gain traction amid increased demand, media stocks rallied when movie theatres opened in Maharashtra.
What the experts say
The Indian stock market expects to open in the green as trends in the SGX Nifty indicate a positive opening of the index in India with a gain of 94 points. Four thousand four hundred forty-four benchmark indices closed at an all-time high on September 24.
The BSE Sensex rose 163.11 points to 60,048.47 while the Nifty50 rose 30.25 points to 17,853.20 and formed a bearish candle on the daily charts as the closing price was below the opening level.
During the week, the BSE Sensex increased 1.75 per cent, and the Nifty50 rose 1.5 per cent, continuing the uptrend for the fifth week in a row.
According to the dynamic charts, the critical support levels for the Nifty are at 17,799.17, followed by 17,745.13. When the index moves up, the central resistance values ​​to watch out for are 17,927.47 and 18,001.73.
ON AN EPC BASIS, the NBCC has obtained a work order to “Build 2000 Social Housing” in Hulhumale, Maldives. The total cost of the project is 968.50 billion.
Hindustan Copper, the government, is selling up to 31.98,646 Hindustan Copper shares to eligible employees through an offer to sell at a price of ₹ 116 per share. The OFS staff will be open from September 27 to 29.
Dalmia Cement (Bharat) has started commercial Line 2 at its cement plant in Kapilas, Cuttack.
In recent sessions, Nifty has seen some consolidation and is trading around the “20 EMA” on the hourly charts, providing immediate support for the next session.
The level around 17,800 would be the intraday support below which we can see some gains towards the 17,700 marks. On the downside, 17950 would be the level to watch for on the higher side, where we have seen some resistance during the last two days.
Above 17950, the index would resume momentum to march towards the 18000 levels, and beyond that, 18080 would be the immediate area to watch out for it.
With the above levels in mind, one should trade with proper risk management and look for specific stock opportunities for better trading setups.
