Closing Bell: Nifty below 11,500, Sensex down 155 pts; Yes Bank falls 14%, auto stocks slip

Technical View: Nifty forms hammer pattern, 11,400 crucial for further direction

As long as the Nifty trades above 5 EMA, placed around 11,450, go for 'buy on dip' strategy, says Shabbir Kayyumi of Narnolia Financial Advisors... Read More

"The MPC will be going into the meeting with 1QFY20 GDP growth at 5% against estimate of 5.8-6.6% in 1HFY20 and 6.9% for FY2020 and having unequivocally expressed growth as its primary concern. With inflation remaining within its comfort range, despite recent onion price increases, revisions to its growth forecast warrant a sharper-than-usual rate cut in the October policy. We pencil in a 40 bps of rate cut which should be a signal to the market that the MPC is not quite done as it front loads the remaining couple of rate cuts in the cycle,"SuvodeepRakshit, Vice President & SeniorEconomist,KotakInstitutional Equities said.

An evening walk down D-St: Market falls for 2nd straight day; banks, financials top drag

Investors kept their bets low amid lack of fresh triggers at home and mixed global cues, while rupee's slide against the US dollar weighed on sentiment.... Read More

"We expect that in the near term RBI policy outcome (scheduled on October 04th) will provide some direction to the markets. Further, markets are likely to remain range bound till the beginning of the earnings season from mid-October. Moreover, global developments particularly US-China trade war and crude oil prices may continue to induce volatility in the markets. We suggest investors should stick to stock specific approach,"Ajit Mishra Vice President,Research,Religare Broking said.

"Nifty is trading in a range of 200 points since last 5 days whereas 11,600 is standing as crucial resistance and 11,400 is acting as strong support. As long as the index is trading above 5 EMA placed around 11,450, we suggest opting ‘Buy on dip’ strategy.Moreover, a sustained move below 11,400 will confirm the reversal,"ShabbirKayyumi, Head of Technical Research at Narnolia Financial Advisors said.

Government approvedrelief plan for Jaypeehomebuyers andNBCC is going to build stuck projects, reports CNBC-TV18.

The company announced the completion of the Good Manufacturing Practices (GMP) inspection of its Goa facility (Unit - I & II), by the Pharmaceutical and Medical Devices Agency (PMDA), Japan.

The MPC will be going into the meeting with 1QFY20 GDP growth at 5% against estimate of 5.8-6.6% in 1HFY20 and 6.9% for FY2020 and having unequivocally expressed growth as its primary concern. With inflation remaining within its comfort range, despite recent onion price increases, revisions to its growth forecast warrant a sharper-than-usual rate cut in the October policy. We pencil in a 40 bps of rate cut which should be a signal to the market that the MPC is not quite done as it front loads the remaining couple of rate cuts in the cycle. Further, with the start of the external benchmarked loans in October, a larger rate cut will help in quicker transmission of rate cuts even as the non-benchmarked loans continue to factor in the past rate cuts.

Globally, we are seeing overall interest rates being stable or dropping, accompanying slowdown in growth. With a sizeable cut in corporate tax rates, the fiscal response has been sharp. This along with the RBI’s easier monetary stance - lower rates, easier liquidity- should help to arrest the economic downturn, and boost sentiments. Against this backdrop, the central bank is likely to have a dovish stance. More importantly, one needs to study the policy narrative to get a direction of likely future action by the RBI, liquidity measures, any other structural changes etc.

: Benchmark indices ended lower but off days low in the volatile session on September 30.

At close, the Sensex was down 155.24 points at 38,667.33, while Nifty was down 37.90 points at 11,474.50. About 777 shares have advanced, 1694 shares declined, and 151 shares are unchanged.

Yes Bank, IndusInd Bank, SBI, Zee Entertainment and ICICI Bank were top losers on the Nifty, while lowers were Bharti Airtel, UPL, HCL Tech, Infosys and ITC.

Among sectors, buying seen in the IT, infra, FMCG and energy sectors, while selling seen in the auto, bank, pharma and metal.

Stake sale by government in 5 CPSEs is likely to come up in group of secretary meet today. Government stake sale in BPCL, CONCOR, SCI, THDC and NEEPCO may come up for CGD nod. NTPC may acquire THDC and NHPC is likely to acquire NEEPCO, quoting source, reported CNBC-TV18.

Nifty yet again bounced back sharply from our mentioned support of 11,400. Near term, traders should look to remain long on the index with a stop below 11,400. Till this support is protected on the downside expect the index to consolidate between 11,400-11,700 as mentioned earlier. Index is witnessing a phase of consolidation of its recent near-vertical up-move. Undertone continues to remain bullish overall. Above 11,700 index is likely to head towards 12,000 zone.