Closing Bell: Indices end lower for 4th session; Nifty settles below 19,700

Gainers and Losers: 10 stocks that moved the most on September 22

The benchmark indices closed lower yet again as 1,747 shares advanced, 1,779 declined, and 143 remained unchanged... Read More

Taking Stock: Sensex extends losing run to 4th day, Nifty slides below 19,700

JPMorgan, earlier in the day, announced India's inclusion in its Government Bond Index-Emerging Markets (GBI-EM) global index suite with effect from June 2024. This is likely to bring huge amount of liquidity in the Indian market... Read More

The BankNifty index witnessed a significant double top breakdown pattern, which often signals a reversal in trend. This bearish pattern was largely influenced by selling pressure in HDFC Bank.The index breached its 20-day moving average (20DMA) located at 45,000. A break above this level could trigger some short-covering, but the overall sentiment remains bearish.The prevailing sentiment in the BankNifty index remains bearish. As a result, it's advisable to maintain a "sell on rise" approach. The next immediate support is seen in the 44,500-44,400 range.

Nifty experienced consistent selling pressure throughout the week, resulting in a decline of 2.80% from its all-time high. This recent correction has caused it to dip below the critical 21-day Exponential Moving Average (21EMA). The sentiment appears bearish at this point, with a key support level identified at 19,600. A breach below 19,600 could potentially initiate a more significant market correction. On the upside, 19,800 is expected to serve as a resistance level.

Downward spiral continued in the markets despite recovery in other Asian peers, as investors booked profits for the 4th straight session after the recent upsurge. While Indian market valuations have become expensive, other bigger concerns like rising crude oil prices, firm US Dollar index and treasury yields coupled with continuous FII selling have been denting the sentiment. Technically, on weekly charts, the Nifty has formed a long bearish candle, indicating a weak sentiment in the near future. However, due to temporary oversold conditions, we could expect a one quick pullback rally in the near future. For the short-term traders now, the 50-day SMA (Simple Moving Average) 19600 and 19500 would be the key support zones while 19800 and 19900 could be key resistance areas. For Bank Nifty, the 50 day SMA or 45000 would be the sacrosanct support level. As long as its trading below the same, the weak sentiment is likely to continue. Below which, the index may slip till 44300-44000. On the flip side, a fresh uptrend is possible only after the dismissal of a 50 day SMA or 45000, above which it could move up till 45400-45500.

Much-awaited India’s inclusion in global bond indices becomes a reality now which will strengthen India’s external fundamental factors. Inclusion in the JP Morgan index alone can prompt an inflow of more than $25 billion over the next 2 years thereby lowering market yields and also supportingthe currency. It may also open doors for inclusion in other global debt indices. The timing couldn’t have been better as the global backdrop has become more challenging with elevated rates, the surge in crude prices and currencies under pressure. Overall, a big positive for the Indian fixed-income market.

Markets extended decline and lost nearly half a percent, in continuation to the prevailing corrective phase. After the initial uptick, Nifty oscillated sharply in a range and finally settled around the day’s low at 19,674.25 levels. Pharma, realty and metals were top losers among the sectoral pack. However, stability on the broader front eased some pressure.

Feeble global cues combined with pressure on select heavyweights are weighing on the sentiment. Going ahead, recovery in the banking and financial majors would be critical for any meaningful rebound else the corrective tone would continue. We feel it is prudent to restrict aggressive positions until the market stabilizes.

We believe the inclusion of Indian Bond came at the right time as China's economy is facing weakness and slowdown. This will drive Foreign Investors’ interest towards India as India continues to maintain its GDP growth with inflation peaking out and a rebound seen in the rural economy. The inflows will also lead to lower borrowing costs for the Govt which will drive the capex plans of the government further.

Rupee ends at 82.93/$ against Thursday’s close of 83.09/$

Benchmark indices ended lower for the fourth straight session after a volatile trade.The Sensex ended221.09 pointsor 0.33 percent lower at 66,009.15, and the Nifty was down 68.00 points or 0.34 percent at 19,674.30.

PSU banks saw strong buying following JP Morgan's announcement of India bond inclusion, while pharma and metals were the major sectoral losers. Market breadth also favoured declines as about 1,747 shares rose, 1,779 fell and 143 were unchanged.

For the week, the market recorded its biggest weekly loss in seven months, snapping a three-week winning streak, with the Sensex and Nifty down around 3 percent each. The Nifty Bank index was down more than 3 percent while the Nifty Midcap 100 lost around 2 percent this week. Except PSU Bank index, all sectoral indices posted weekly losses.

Power Grid, Asian Paints, Coal India, NTPC, HDFC Life were the top Nifty gainers whereasHDFC Bk, UltraTech, DRL, Wipro were the biggest laggards.

Berger Paints, REC, PFC, Union Bank, Canara led gains amongst midcaps. On the flipside, GNFC, Syngene, Zydus, Godrej Prop were the worst hit among midcaps.

HCLTech on September 22 said ANZ, one of Australia’s four largest banks and the largest banking group in New Zealand and the Pacific, has signed a deal with the IT firm to “transform ANZ’s digital employee experience across 33 countries.”

HCLTech will provide ANZ with digital workplace services and experience management across end user devices and applications including laptops, mobile phones and tablets, the company said in a press release.

HCLTech will be leveraging next-generation technologies including extended reality, GenAI and IoT-powered workspaces to enable experiential, sustainable and inclusive workplaces.

Lux Industries said that the Income Tax department was conducting searches at its premises and the company is extending its full support to the operation. Since the survey is yet to be concluded, the firm said it is unable to make an assessment of the impact