Sensex, Nifty end lower dragged by HDFC Bank, RIL; PSU Bank index jumps 3%

Closing Bell on Monday, September 18: The S&P BSE Sensex fell 242 points to 67,597 levels, while the Nifty50 ended below the 20,150-mark at 20,133, lower by 59 points

Sensex, Nifty end lower dragged by HDFC Bank, RIL; PSU Bank index jumps 3%

Stock market highlights: Caution creeped into the markets ahead of key central bank decisions globally, dragging the domestic benchmark indices up to 0.36 per cent lower.

The S&P BSE Sensex fell 242 points to 67,597 levels, while the Nifty50 ended below the 20,150-mark at 20,133, lower by 59 points.

HDFC Bank, Bharti Airtel, Infosys, Ultratech Cement, Wipro, Tata Steel, Reliance Industries, Kotak Bank, and Tech Mahindra declined between 0.5 per cent and 2 per cent on the Sensex. On the 50-pack index, Hindalco, Dr Reddy's Labs, Adani Ports, and Adani Enterprises were the other laggards.

The broader markets, too, were in the sellers' grip today with the BSE MidCap and SmallCap indices sliding 0.27 per cent and 0.61 per cent, respectively.

Among sectors, the Nifty PSU Bank index jumped 3.4 per cent, followed by the Nifty Auto index (up 0.85 per cent). All other indices ended lower led by the Nifty Realty, Media, and Metal indices (down up to 1.37 per cent).

4:03 PM

Tech View :: Key levels on Nifty, Bank Nifty to watch out

Nifty50
The Nifty index has been consolidating within a broad range, with notable call writing activity observed at higher levels. This suggests that market participants are cautious and have been selling call options to hedge against potential downward movements. The sideways trend in the index is expected to persist in the upcoming trading sessions. The index has support at the 20,100 level and resistance at 20,200. A break on either side of this range is likely to lead to trending moves.

Bank Nifty

The Bank Nifty index experienced profit booking at higher levels and struggled to surpass the 46,300 mark. The PSU (Public Sector Undertaking) bank sector emerged as a clear outperformer in the index. This outperformance is expected to continue in the near term.

The Bank Nifty has an immediate support zone in the range of 45,800 to 45,700. This level is crucial, and a breach below it could trigger further selling pressure in the index.

Views by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

4:00 PM

Comment :: 'Markets await clarification from major central banks'

Domestic markets relinquished their momentum as they anticipated a raft of policy rate decisions due this week. The investors' confidence was also impacted by the expectations of a demand resurgence in China, combined with crude supply cuts. With the Fed rate hike fears back on the cards, as reflected in the elevated US bond yields, the markets await clarification from major central banks.

Views by: Vinod Nair, Head of Research at Geojit Financial Services

3:59 PM

Comment :: 'Profit-taking in momentum stocks may be prudent'

>> FII flows, while previously robust, have started tapering off, possibly due to India's outperformance among emerging markets and potential US Fed rate hikes.

>> Important to remain slightly conservative as corrections can be swift

>> Favoring large cap and larger midcap names is suggested, while profit-taking in stocks (especially momentum ones) may be prudent

>> Despite intermittent corrections, the overall positive outlook for Indian markets remains

>> Interim corrections should be viewed as opportunities to increase equity exposure for long-term investors.

Views by: Milind Muchhala, Executive Director - Julius Baer India

3:56 PM