After seeing a strong open, the benchmark indices on Dalal Street, Nifty 50 and Sensex gave way to selling pressure, erasing all gains to trade flat in the afternoon session on Monday, September 29. While PSU banking stocks supported the sentiment, weakness in Axis Bank, L&T, and Maruti Suzuki capped the gains.
At 12 p.m., the Sensex was up 14.33 points or 0.02 percent at 80,440.79, and the Nifty was up 10.65 points or 0.04 percent at 24,665.35. About 1,688 shares advanced, 1,946 shares declined, and 159 shares unchanged.
Further, sectoral performance on NSE showed a mixed trend. PSU Bank stocks were leading the pack with gains of 0.9 percent, followed by Realty (0.8 percent), Energy (0.7 percent), and Metal (0.7 percent).
The Infra index was flat with a marginal uptick of 0.06 percent, while Pharma edged higher by 0.18 percent. On the downside, Media was the worst performer with a fall of 0.8 percent. FMCG slipped 0.2 percent, Auto was down 0.2 percent, and IT saw a minor dip of 0.04 percent.
The weakness in the broader market is likely to sustain given the valuations which continue to remain elevated. Investors can slowly accumulate largecaps in automobiles, banking, telecom, capital goods and cement, according to experts.
"Weakness in pharmaceuticals is an opportunity to buy into the segment since India’s generic exports will not be impacted by Trump’s tariffs on patented and branded medicines," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
On the technical front, the Nifty 50 now trades under its 20-day and 50-day EMAs, while nearing the 200-day EMA, a sign of weakness in the short-term trend. "A breakdown below 24,500 could trigger a decline toward 24,400 (200-day EMA) and further to 24,180. On the upside, resistance is placed at 24,750, 24,880, and 25,000, but unless these levels are reclaimed, the short-term bias will remain negative," Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking said.
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