Closing Bell: Market ends flat amid volatility; realty gains, IT drags

Taking Stock: Market breaks 4-day losing streak; ends with mild gains

On the sectoral front, realty index rose 1.5 percent and bank index was up 0.3 percent, while Information Technology index fell 0.7 percent and capital goods index was down 0.3 percent... Read More

Nifty remained turbulent all day after today's flat beginning, but it eventually stabilised and ended flat forming doji candle on daily chart. 19600-19550 is the strong support for Nifty. Further correction can be expected only if Nifty closes below 19550 levels.

The market has traded flat with the Sensex gaining 0.02 percent and closed at 66023.69 and Nifty traded flat for intraday and closed at 19674.55 levels whereas Bank Nifty was up by 0.35 percent and settled at 44766.10.

Among sectors Nifty PSU Bank, Nifty Financial Services and Nifty Realty ended in green while Nifty IT, Nifty Auto and Nifty Pharma ended on the lower side. In Nifty stocks, Bajaj Finance, Bajaj Finserv and Tata Consumer Product were the top gainers while Hindalco, Hero MotoCorp and Infosys were the prime laggards.

INDIA VIX was positive by 2.25 percent intraday and settled at 10.90.

Index has a strong support around 19550-19600 zone. Coming to the Open Interest (OI) Data, on the call side, the highest OI observed at 19800 followed by 19900 strike prices while on the put side, the highest OI is at 19500 strike price. On the other hand, Bank Nifty has support at 44400-44200 while resistance is placed at 44900-45100 levels.

Markets started the week on a muted note and ended unchanged, taking a breather after the recent slide. On the benchmark front, Nifty oscillated in a range and finally settled at 19674.55 levels. Meanwhile, mixed trends on the sectoral front kept the traders occupied wherein realty and financials edged higher while IT and pharma ended in the red. The broader indices too traded mixed wherein midcap posted decent gains while smallcap closed flat.

It is a normal pause and we may see some rebound too due to oversold positions. However, the upside seems capped citing a strong hurdle around the 19800-19900 zone. Besides, weak global cues would continue to weigh on the sentiment. We thus reiterate our view to stay stock-specific and focus more on risk management.

The day presented a mixed picture in the market, with sectors such as Realty, Banking, and Consumer Durables performing well while IT and Pharma struggled. Investors were actively repositioning, shifting away from stocks tied to the global economy and focusing on the domestic economy.

Concerns loomed over a potential global economic slowdown due to the prolonged period of high interest rates. While the domestic market is witnessing good registration and consumption demand ahead of the festival season, India's entry into JP Morgan's Emerging Markets Government Bond Index is benefiting the financial sector in anticipation of a reduction in funding costs.

The Bank Nifty index experienced a brief respite following a four-day sell-off, with buyers gaining traction from lower levels. However, the index continues to trade below its 20-day moving average (20DMA), which is currently positioned at 45,000. A close above this level would signal a potential resumption of the upward momentum.

On the downside, the lower-end support now rests within the 44,500 to 44,000 zone. A breach below this support range could result in additional selling pressure on the index.

Markets snapped 4-session losses to eke out modest gains on selective buying in a lacklustre trading session. While markets were volatile in early trades, sluggish European and other Asian indices saw local gauges end on a flat note. Fresh uptick in US treasury yields is making investors jittery as FIIs continue to offload shares in local equities.

Technically, on daily charts the Nifty has formed a Doji candlestick formation, which is indicating incisiveness between the bulls and bears. However, a quick pullback rally is not ruled out from the current levels.

For the bulls, the 50-day SMA or 19600 would act as a key support zone. Above which, the market could move up till 19800-19850. On the flip side, a fresh sell off is possible only after the dismissal of 19600, below which the index could slip till 19525-19500.

The Nifty opened on a flat note and witnessed a volatile day to trade. Nifty witnessed wild swings in both directions ultimately closed absolutely flat and thus forming a doji pattern on the daily charts. Doji pattern indicates indecision among market participants regarding the direction. It is trading right in the support zone 19600 – 19650 and considering the sharp decline in the past few trading sessions a pullback appears highly probable.

On the hourly momentum indicator we can observe a positive divergence and also a positive crossover which also suggests that a pullback is likely. The pullback can be till 19820 – 19880 where key hourly moving averages and the gap area formed on 21st September is placed. In terms of levels, 19600 – 19620 is the crucial support zone while 19820 – 19880 shall act as an immediate hurdle zone.

Bank Nifty has witnessed a pullback from the 78.6% fiboancci retracement level (44400) and also closed with decent gains. We expect a pullback in the Bank Nifty as well. On the upside the pullback is likely towards 45000 – 45200. On the hourly charts the momentum indicator has a positive crossover which is a buy signal and the positive divergence suggest that the momentum on the downside is weakening.

The index remained volatile before closing with a doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600; a fall below 19,600 might initiate fresh shorts. On the higher end, resistance is placed at 19,755.

Indian equities commenced the week on a flat note and compounded their losses in the opening trade itself to test its 50DMA as well as a strong support zone of 19,600-19,635. After forming a Bullish Shark harmonic pattern, a sharp reversal was seen in the BankNifty which helped the Index to recover from the lows. In the later part of the session, the Index failed to hold higher levels and erased most of its gains; however managed to end the day with minor gains of 0.30 points at 19,674.55.

On a sector-wise performance, Realty was the top gainer while IT and Media were the major laggards. On the daily chart, the Nifty50 has formed a DOJI candlestick pattern at its 50DMA support which indicates reversal of trend. A zone of 19,600-19,635 continues to act as strong support area whereas, the higher side is capped at 19,780.

Indian rupee ended 21 paise lower at 83.14 per dollar on Monday versus Friday's close of 82.93.

Benchmark indices ended on a flat note in the highly volatile session on September 25.

At close, the Sensex was up 14.54 points or 0.02 percent at 66,023.69, and the Nifty was up 0.20 points at 19,674.50. About 1817 shares advanced, 1835 shares declined, and 161 shares unchanged.

Bajaj Finance, Tata Consumer Products, Apollo Hospitals, Bajaj Finserv and Coal India were among the top gainers on the Nifty, while losers included Hindalco Industries, SBI Life Insurance, Hero MotoCorp, Infosys and Dr Reddy's Laboratories.

On the sectoral front, realty index rose 1.5 percent and bank index up 0.3 percent, while Information Technology index down 0.7 percent and capital goods index down 0.3 percent.

The BSE midcap index rose 0.40 percent, while Smallcap index ended on a flat note.

The public issue of JSW Infrastructure was subscribed 28 percent so far on debut, with bids coming in for 3.81 crore equity shares against an IPO size of 13.62 crores on September 25.

All investors have started participating in the first public issue of the JSW Group company in the last 13 years, with retail investors buying 1.08 times the allotted quota and high net-worth individuals 31 percent shares.

Qualified institutional buyers (QIB) have subscribed for 0.13 percent shares of the reserved portion which is 75 percent of total offer size, while the 15 percent of the issue is reserved for high net-worth individuals and the remaining 10 percent for retail investors.

Strides Pharma Science' step down wholly owned subsidiary in Singapore viz., Strides Softgels Pte. Ltd. shall undertake the acquisition of CDMO business and Soft Gelatin business from Strides Pharma Global Pte. Ltd, another step-down wholly owned subsidiary of the Company. The Parties have entered into a Binding Memorandum of Understandingand have agreed that definitive agreements shall be executed within three months from date of signing the Binding Memorandum of Understanding.