HDFC Bank, ITC lift Sensex 100 pts on late buying; Nifty ends atop 19,600

CLOSING BELL ON SEPTEMBER 06, 2023: The Sensex gained 483 points from the day's low, with HDFC Bank, ITC and Bharti Airtel contributing 217 points to the BSE benchmark on Wednesday.

SI Reporter New Delhi

Stock Market Highlights: The frontline indices extended their winning run into the fourth straight trading session, thanks to the late buying in index heavyweights - HDFC Bank, Bharti Airtel and ITC.

The NSE Nifty50 swung in a range of 142 points – the index hit a low of 19,492, and a high of 19,636, before signing off the day at 19,611 – up 36 points. The NSE benchmark closed above the 19,600-level after nearly a month, and has gained 357 points in the last four trading sessions.

Meanwhile, the S&P BSE Sensex which slipped to a low of 65,488 amid weakness in banking, IT and metal shares, rebounded and rallied to a high of 65,971 – up 483 points from the day’s low in late deals. The Sensex finally ended with a gain of 100 points at 65,881.

The three index heavyweights – HDFC Bank, Bharti Airtel and ITC contributed 217 points to the Sensex. Individually, Airtel and HDFC Bank gained 1.5 per cent each, while ITC was up a per cent. Titan, UltraTech Cement and Sun Pharma were the other notable gainers in the Sensex 30.

On the other hand, Tata Steel slipped nearly 2 per cent. Axis Bank, IndusInd Bank, NTPC and ICIC Bank were down around a per cent each.

The broader market ended on a quiet note today. The BSE MidCap index was up 0.1 per cent, while the SmallCap edged a wee bit lower.

Sectorally, the BSE FMCG index was up 1 per cent, while Metal and Realty indices declined 1 per cent each.

Primary Market Update

Jupiter Life Line Hospitals was subscribed up to 61 per cent on Day 1 of the offer period as of 03:30 PM. Retail quota received bids up to 86 per cent, while HNIs segment was subscribed 81 per cent.

Ratnaveer Precision Engineering IPO was subscribed 89.4 times as of 03:30 PM on the final day of the offer period. Retail portion saw bids in multiples of 51.2 times; HNIs 134 times and QIBs up to 123 times.

4:09 PM

Tech View :: 'Bank Nifty may remain sideways'

Bank Nifty has witnessed three days of consolidation. It witnessed a pullback though closed in the negative. On the downside 44,200 proved to be a strong support and the Bank Nifty witnessed a sharp pullback from the support. Going forward, we expect the positive momentum to continue and expect the Bank Nifty to target levels of 45,000 – 45,200 from short term perspective. The daily and hourly momentum indicators are providing divergent signals which can lead to a sideways consolidation; however, the downside appears limited.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

4:06 PM

Tech View :: 'Nifty may next attempt 20,000-mark'

Nifty exhibited volatility but achieved a significant milestone by closing above 19,600 for the first time in a while. The bullish crossover of the 21EMA and 55EMA has persisted, signaling an ongoing bullish trend. Additionally, a bullish crossover in the RSI highlights the index's strength. In the short term, Nifty may target levels of 19,750 or even 20,000. On the downside, key support rests at 19,440, and the market is expected to maintain a buy-on-dips strategy as long as this support level holds.

Views by: Rupak De, Senior Technical analyst at LKP Securities

4:00 PM

Comment :: 'Market rebound lacks decisiveness'

Though we are seeing a rebound in the index, it lacks decisiveness due to the prevailing underperformance of the banking pack, which holds considerable weight. Besides, mixed cues from the global front are also weighing on the sentiment. We thus reiterate our view to stay focused on stock selection and avoid going overboard.

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.

3:55 PM

Comment :: 'Domestic markets rallied on improved India outlook'

A spike in crude oil reverberated across the globe, reviving concerns about inflation and sparking fears of a Fed rate hike. This led to a surge in US bond yields, causing investors to shift towards the safety of bonds and reversing the buying trend of foreign investors in the domestic market. Nevertheless, the resilience of the domestic markets shone through as investors placed their bets on an improved outlook, ultimately helping the market recover from the initial shock.

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

3:51 PM