Sensex gyrates 370 pts, ends 127 pts down; Nifty holds 17,350; RIL dips 2%

Stock market updates: Benchmark indices started the week on a choppy note as the S&P BSE Sensex gyrated 370 points in the intra-day trade before settling 127 points, or 0.22 per cent, lower at 58,178 levels.

Kotak Bank (up 1.7 per cent), Tata Steel, TCS, and Bajaj Finserv were the top gainers on the 30-share pack while Reliance Industries (down 2.2 per cent), ICICI Bank, HUL, HDFC Bank, and M&M ended as the top laggards.

It's NSE counterpart, meanwhile, closed at 17,355 levels, down 14 points or 0.08 per cent. Sectorally, the Nifty Metal index settled over 1 per cent higher while the Nifty Private Bank index slipped 0.5 per cent.

However, healthy buying in the broader market kept overall market breadth in the favour of the buyers. The BSE MidCap and SmallCap indices closed 0.3 per cent and 0.8 per cent higher, respectively, resulting in a advance-decline ratio of 1.1:1 

5:07 PM

MARKET CLOSING COMMENT :: Deepak Jasani, head of retail research, HDFC Securities

Nifty closed mildly down in a narrow band of closings over the past four days on the first day of the trading week on Sept 13. Nifty opened flat and sold out in the first hour of trade. After making an intra day low at 1005 Hrs, it started to rise gradually. At close, Nifty was down 14 points or 0.08% at 17355.

 

On a day when the volumes on the NSE continued to be lower than recent averages, Metals, Utilities and Realty indices gained the most while Energy, Consumer Durables and Bank indices fell the most. Small and midcap indices ended in the positive

Nifty continues to close in a narrow band of 17353-17378 over the past 5 sessions. This reflects lack of enthusiasm on the part of sellers to sell aggressively while buyers keep nibbling at individual stocks. Advance decline ratio continues to be positive. 17254-17437 is the band for the near term for the Nifty.

4:53 PM

MARKET STRATEGY :: Shrikant Chouhan, Executive VP, Equity Technical Research, Kotak Securities

Markets witnessed profit-taking in select frontline stocks as weakness in other Asian markets weighed on Indian gauges. Benchmark Nifty moved in a range of 100 points and took support near 17270 after falling sharply in early trades. Over the last four days, the index has been hovering between 17250 to 17435 levels. At the same time, the Nifty is consistently taking support at 17250. As long as the index is trading above 17250, the bullish formation is likely to continue up to 17450 -17500 levels. However, trading below the same could possibly trigger correction up to 17200-17150 levels.

4:39 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The short term trend of Nifty continued with range bound action, but the overall market breadth has placed at the positive side. The Nifty is expected to form a higher bottom reversal around 17250 levels (near the support of 10 day EMA) in the next 1-2 sessions before witnessing another round of upside bounce. Immediate resistance to be watched at 17450 levels.

4:28 PM

TECH VIEW :: Fresh buying only can only happen above 17,500 zone

The Nifty index showed some sell-off in the beginning but a smart recovery has been seen from good support zone.

It managed to close at 17,351 & formed a Doji candle pattern on daily chart.

Good support zone for the index is coming near 17,300-17,250 zone. If it manages to hold above-said levels, we may see next move towards 17,430-17,500 zone. Fresh buying only can happen above 17,500 zone

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities.

4:16 PM

TRADING STRATEGY :: Markets are still expected to consolidat

Nifty has been constantly consolidating in a range, 17,250 is immediate support to Nifty followed by 17,210-17,175. Hurdle on the upside is placed at 17,370 & cross over can take nifty to 17,435-17,475 levels. 

 

Bank Nifty which is underperforming the market is also traveling in a range, strong support is placed at 36,150 followed by 36,000-35,900 levels & similarly on upside hurdle for bank nifty is placed at 36,700 and crossover will take to next resistance level which is placed at 37,000 levels for Bank Nifty.

 

Markets are still expected to consolidate. We are still bullish on Mid & Small caps as this week many companies have come out of the Trade-to-Trade category and we expect them to be out of the ASM list with the next 3 weeks.

 

Sectors to Focus – Specialty Chemicals, Textiles, Metals & Banks

Views by: Rahul Sharma, Co-Founder, Equity99

4:04 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Indices remained rangebound in trade today after a stellar run in Index stocks during the past few weeks making India one of the best-performing markets globally last month. Action however was seen in select Small & Midcap names as consolidation in several sectors have benefited select companies who have used the Pandemic to gain share. Market Participants were however picking their spaces as valuations are pricey with several stocks trading at 3.5x price to book

3:57 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services.

Indian indices extended its early losses in a volatile session, ahead of the release of domestic inflation data. Despite hopeful signs, the global markets failed to inspire Asian markets. The European Central Bank in its policy meeting last week raised its growth and inflation projections for the year owing to quicker economic recovery thereby moderately reducing the pace of its pandemic-era bond-buying programme. Domestic retail inflation is expected to remain high in line with the July inflation rate of 5.59%.

3:51 PM

Volatility Alert

India VIX ends 0.5 per cent higher at 14.03 level

3:50 PM

BSE Snapshot :: 255 scrips hit 52-week high in a subdued market

3:48 PM

Sector of the day :: Nifty Bank dips 0.5%

3:46 PM

Sector of the day :: IT stocks shine; Mindtree surges 5%, Mphasis 2%

3:45 PM

Sector of the day :: Gains in metal stocks help Nifty50 end flat

3:44 PM

Broader market :: BSE SmallCap index outperforms benchmarks

3:42 PM

Broader market :: BSE MidCap index recoups losses, ends mildly above flat line

3:41 PM

Sector Check :: Nifty Metal climbs over 1%, pvt banks under pressure