Closing Bell: Sensex ends in the green, Nifty above 17,800; IT shines, realty, power drag

Domestic equities edged higher amid positive global cues. Nifty opened gap-up but failed to sustain at higher levels and closed with marginal gains of 34 points at 17,833. India VIX cooled off by 3 percent to 17.7 levels.

Indian equities although closed positive, faced resistance below 18,000 levels as markets failed to sustain yesterday’s momentum and fell from day’s highs. Fresh buying was witnessed in IT and metals while profit booking was seen in cement, real estate, consumer stocks. Global markets too are trying to shrug off growth and inflation concerns and are likely to make a positive weekly close after 3 consecutive weeks of losses. Domestic markets are likely to remain firm on the back of healthy macro data, strong intuitional flows and improvement in festive demand. Expect sectors linked to capital expenditure, consumption and credit growth to do well over the next few weeks.

After two week’s of correction, Nifty ended this week with a gain of 1.6 percent. On a weekly basis, Nifty closed at the highest levels since 14th Jan 2022.

IT stocks hogged the limelight in today's session. Infosyscontributed the most to the index gain, by rising 2.4 percent. TechMahindrawas the top gainer, up 3.4 percent. Bank Nifty index managed to surpass all previous hurdles and closed at an all-time high on a weekly basis.

Declining shares outnumbered the advancing shares on Friday where advance decline ratio stood at 0.96 on BSE. A close above 17,992 for Nifty would result in a fresh trend breakout, that could bring more bullish momentum for the index. Support has now shifted up to 17,550 levels.

This Week

Sensex & Nifty snapped 2-week losing streak, with both indices gaining 2 percent each. Midcap index gained for 12th straight week, up 2 percent. Nifty Bank clocked in three consecutive weeks of gains

Kothari, Senior Technical Analyst, Choice Broking

The support for Nifty has shifted to 17,600 levels, while on the upside 18,000 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 39,500 levels while resistance at 40,900 levels. Till the time Nifty holds 17500 level, it’s looking strong on charts.

Both Sensex & Nifty Index gained 1.7 percent over the past week. Indian markets were buoyed by falling crude prices and a decline in domestic bond yields. Autos were the top losers in the week, while banks, capital goods and healthcare were the top gainers among major sectors.

Within Nifty, Bajaj Auto (-4.8 percent), Tata Motors (-3.7 percent) and Nestle (-1.9 percent) lost the most, while Shree Cement (+18.5 percent), Adani Ports (+7.1 percent) and Tech Mahindra (+5.3 percent) gained the most. Given the lack of major domestic events, Indian markets’ sentiment will be influenced by its global counterparts to determine its movement. Across the globe, investors will be keeping a close watch on China’s Inflation numbers. The volatility in oil prices and USDINR will be other important factors that may affect the market. Investors need to watch out for stock-specific news.

USDINR (CMP Rs 79.57 spot):Indian rupee appreciated by 0.14 percent on September 9 on the back of positive domestic equities and a weak US Dollar. USDINR spot price is expected to trade in a range of Rs 79 to Rs 80.30 in next couple of sessions.

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