Mid-day Mood | Sensex, Nifty mildly lower ahead of US economic data; broader markets outperform benchmarks

The broader market outperformed the benchmark indices. While BSE Midcap gained 0.3 percent, BSE Smallcap was up 0.6 percent.

The Sensex and Nifty experienced volatile trading in negative territory on September 3, weighed down by losses in the banking and IT sectors. This decline comes after both benchmarks had recorded gains for the past 10 sessions. All eyes are now on US economic data, including US ISM manufacturing survey due later on September 3 and particularly jobs data on September 6, which could provide cues on the extent of Federal Reserve rate cuts.

At 11.30 am, the Sensex was down 96 points or 0.1 percent at 82,463 and the Nifty 50 was down 23 points at 25,255. About 1,801 shares advanced, 1,461 shares declined, and 90 shares were unchanged.

"The Nifty is expected to consolidate around current levels, with the potential for limited upside due to aggressive call writing across multiple strike prices. On the downside, the 25,200 level is anticipated to provide key support," said Shrey Jain, Founder and CEO of SAS Online. Jain advised investors to exercise caution in stock selection and maintain light carry-forward positions to navigate current uncertainties.

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The broader market outperformed the benchmark indices. While BSE Midcap gained 0.3 percent, BSE Smallcap was up 0.6 percent. Analysts said that the focus will now be on global market trends amid a lack of any major domestic triggers.

Sectoral Trend

Nine of 13 major sectoral indices were in the red. Nifty Media and Nifty Metal fell the most while Nifty Pharma and Nifty Healthcare gained 0.5 percent each.

Fundamental View

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that there are two distinct trends that are being observed in the secondary and primary markets. He said that in the secondary market, high-quality stocks such as Bajaj Finance, ITC, Bajaj Auto and Maruti Suzuki are being accumulated. "At the same time there is froth in segments of mid and small caps where valuations are hard to justify," he said.

The other trend pointed out by Vijaykumar was the irrational moves in the SME IPO market where many SMEs of doubtful credentials are getting their IPOs oversubscribed many times and the stocks on listing are manipulated and driven to upper circuits for days. "This will end in tears for the newbies who have no understanding of market fundamentals," he said.

Also Read | How brokerages value Reliance Industries' business segments

Technical View

Hardik Matalia, Derivative Analyst at Choice Broking expects Nifty 50 to find support at 25,200 followed by 24,150 and 25,050. "On the higher side, 25,350 can be an immediate resistance, followed by 25,450 and 25,500," he said.

Key Nifty gainers

Hero MotoCorp, Nestle, HUL, Sun Pharma, Wipro

Key Nifty losers

Bajaj Finance, BPCL, JSW Steel, Britannia, Axis Bank

Key Sensex gainers

Nestle, HUL, Wipro, Sun Pharma, ITC

Key Sensex losers

Bajaj Finance, JSW Steel, Axis Bank, Bharti Airtel, Bajaj Finserv

Stock moves

Rallis India: Shares fell nearly two percent as HSBC issued a "Reduce" call on the stock with a target price of Rs 251 per share. The bearish call on the chemical, crop care & seed company's stock is due to industry headwinds that could impact its performance.

Kaynes Technology : Shares surged over eight percent in early trade after the Central government approved a chip proposal by the firm under the semiconductor scheme.

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