Key equity indices the Sensex and the Nifty ended higher on September 30 but the upside was capped as the risk appetite of investors remained low following mixed global cues.
Equity benchmarks witnessed selling at higher levels as uninspiring global cues amid caution over the outcome of US presidential elections weighed on sentiment. Spiralling coronavirus infections also worried investors.
The Sensex ended 95 points, or 0.25 percent, higher at 38,067.93 and the Nifty settled at 11,247.55, up 25 points or 0.22 percent.
Mid and smallcaps underperformed as the BSE midcap and smallcap indices closed with gains of 0.05 percent and 0.04 percent, respectively.
Among the sectoral indices, BSE telecom emerged as the top loser, falling 2.86 percent. It was followed by BSE metal and oil & gas indices that slipped 1.92 percent and 1.90 percent, respectively.
BSE consumer durables, up 1.72 percent, and FMCG, up 1.42 percent, were the top gainers.
We have collated experts' views on what investors should do on October 1, here they are:
Shrikant Chouhan, Executive Vice President-Equity Technical Research at Kotak Securities
The Nifty closed within the trading range of the previous day. It formed a bearish 'Harami Cross' pattern on the daily chart that suggests prices may soon reverse to the downside if the Nifty breaks 11,180.
Rarely, does it acts as the continuation formation and for that, the Nifty will have to break 11,310 on the upside.
It also reflects the indecisive nature of the market and cues from the US markets would decide the next course of action.
On October 1, it could be make or break for the Indian markets. Below 11,180, the Nifty can fall to 11,050 or 11,000 levels, while on the upside, if the Nifty crosses 11,310, it will lift the index to 11,370/11,430. The Bank Nifty will follow the trend.
Ajit Mishra, VP-Research, Religare Broking
We are just mirroring the global markets, so traders should keep a close watch on world indices for further cues.
We are also seeing mixed trends within sectors, so be extra cautious while selecting stocks.
A decisive breakout above 11,300 would pave the way for a further upmove else profit-taking will resume.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The rangebound action with volatility continued in the market for the second consecutive session. A small positive candle was formed with minor upper and lower shadow, which indicates the formation of a high wave-type candle pattern.
Normally, a formation of such a high wave-type candle pattern after a reasonable upmove or decline could be considered as a reversal signal. Having formed this pattern in a sideways range move doesn't show any significant predictive value.
The Nifty is placed at the hurdle of the up-trend line as per the concept of change in polarity around 11,250 levels and the market has been struggling to sustain above this hurdle for the last two sessions. The overall market breadth was not in the favour of the bulls, as the broader market indices like mid and smallcap segments ended with minor loss.
The short-term trend continues to be rangebound. If the Nifty fails to show a sustainable upmove above the immediate hurdle of 11,300 in the next couple of sessions, then there is a possibility of weakness emerging from the highs.
The immediate support is placed at 11,180 and the downside momentum is expected to pick up below this area.
S Hariharan, Head-Sales Trading, Emkay Global Financial Services
Markets tested major support at 200-DMA on Nifty and NSE500 and rebounded from over the last few sessions. The rally has been supported by the return of net buy flows from domestic institutional investors after almost two months.
Given the backdrop of elevated redemptions from domestic mutual funds over the last few months, this turn in the flows shows the ebbing of redemption pressures.
Compared to largecaps, small and midcaps have shown greater resilience and the market breadth is currently near a two and a half year high.
While the bounce of broader indices from 200-DMA mirrors behaviour seen at the end of January, the market breadth is much stronger. Among sectoral indices, the FMCG index displays bullish sign having reclaimed its 200-DMA after a drop into oversold territory.
Rohit Singre, Senior Technical Analyst at LKP Securities
For the second day running, the Nifty closed the day flat at 11,226 and formed a Doji candle on the daily chart hinting at uncertainty in the markets.
The index has strong resistance near 11,300. Any break above the level can activate good momentum, which can push the index to the next hurdle zone of 11,400. Good support is coming near the 11,200-11,120 zone. Overall, the index may trade in consolidation in the 11,200-11,300 zone.
The Nifty Bank also ended flat at 21,415. Supports is placed in 21,170-21,000 zone and resistance near 21,700-22,000.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.