Closing Bell: Nifty below 19,550, Sensex down 316 pts; capital goods, PSU Bank outshine

Taking Stock: Market slips into the red; Nifty ends below 19,550, Sensex falls 316 points

ONGC, Eicher Motors, Hindalco Industries, Maruti Suzuki and Dr Reddy's Laboratories were among the top losers on the Nifty. The gainers included Titan Company, Bajaj Finance, L&T, Bajaj Finserv and Adani Ports... Read More

The Nifty ended the session with a selling pressure following a volatile trading day. Towards the downside, the index found support at the ascending trendline on the daily chart. The sentiment looks pessimistic for the short term. Looking ahead, the level of 19,480 is expected to serve as a pivotal "make or break" point. If there is a decisive decline below 19,480, it might trigger heavy selling in the market. On the upside, 19,600 will continue to remain a significant resistance level.

The Indian rupee started the fourth quarter of the year on the back foot. Hopes and expectations of a risk-assets bounce have ebbed, thanks to a surge in US yields and the greenback. Domestic traders will eye this week’s RBI monetary policy decision after the monsoon season ends with a 6% deficit.

Spot USDINR is expected to trade higher in line with weaker regional currencies. The pair has resistance at 83.30 and support at 82.80.

The Bank Nifty bulls have successfully defended the crucial support level of 44,200, which is being seen as a make-or-break point for the index. On the upside, the index faces resistance around the 44,800 mark. It's worth noting that the index is still trading below its 20-day moving average (20DMA), suggesting a cautious "sell on rise" sentiment in the market.

Currently, the Bank Nifty is consolidating within a broad range of 44,200 to 44,800, and a decisive break on either side, confirmed by a closing basis, is expected to determine the continuation of the prevailing momentum.

After a flat opening Nifty came down near strong support of 19500 and managed to close the session above 19500 levels. Bank Nifty has also bounced from the support of 44200 levels and managed to close near 44400 levels.

The market has traded negative with the Sensex losing 0.48 percent and closed at 65512.10 and Nifty was down by 0.56 percent intraday and closed at 19528.75 levels whereas Bank Nifty was down by 0.42 percent and settled at 44399.05.

Among sectors Nifty Realty, Nifty Media and Nifty PSU Bank ended in green while Nifty Auto, Nifty IT and Nifty Energy ended on the lower side. In Nifty stocks, L&T, Titan and Bajaj Finance were the top gainers while ONGC, Eicher Motors and Hindalco were the prime laggards.

India VIX was positive by 2.88 percent intraday and settled at 11.78. Index has a support around 19500-19450 zone.

Coming to the Open Interest (OI) Data, on the call side, the highest OI observed at 19700 followed by 19800 strike prices while on the put side, the highest OI is at 19500 strike price. On the other hand, Bank Nifty has support at 44000-44200 while resistance is placed at 44750-44900 levels.

Nifty fell on October 03 following weak global cues. At close, Nifty was down 0.56% or 109.6 points at 19528.8. Volumes on the NSE continued to be on the lower side. Smallcap index ended 0.61% in the positive even as the advance decline ratio ended at 0.87:1.

Global shares fell on Tuesday, rumpled by a surge in U.S. bond yields that lifted the dollar after the US Fed officials served a reminder that borrowing costs won't drop any time soon. The Fed's outlook has thrashed other rate-sensitive assets such as oil, which slipped again on Tuesday. Yen trembled near a one-year low, keeping traders on alert for a possible intervention.

The India Manufacturing Purchasing Managers’ Index stood at 57.5 in September compared with 58.6 in August, showing mild signs of a slowdown in September, primarily due to a softer growth in new orders.

Nifty failed to build on to a day’s gain again and faced the sell on rise scenario especially in largecaps. It could now remain in the 19453-19674 band for the near term with a downward bias. However, the broader market continues to be doing well. This could get disrupted only on large back to back losses in the Nifty.

After the extended weekend, the frontline index faltered, but small and midcap index surprisingly held their ground. Nifty took a hit, sliding down to 19,528, and Sensex dropped by 316 points, closing at 65,512. The BSE midcap index stayed steady, and the smallcap index managed a 0.6 percent increase.

There's a hint of weakness, but it's far from a panic situation. Overall, the market is range bound, indicating no major issues and it’s a market driven by specific stocks and sectors. So, when you're making your moves, keep this in mind.

The support level is hanging around 19,500-19,600 for Nifty, and for Bank Nifty, it's between 44,200 and 44,600. So, it's all about strategizing smartly within these parameters.

USDINR spot closed 17 paise higher at 83.20 in a day of lackluster trading. Suspected heavy intervention from RBI capped the advance. Global cues kept importer and oil demand alive. Over the near term we expect a range of 83.00 and 83.30.

Markets started the week with a cut over half a percent, in continuation of the prevailing corrective phase. After the initial fall, Nifty remained range bound till the end and finally settled at 19528.75 levels. Most sectors traded in sync wherein energy, auto and pharma were among the top losers. However, the broader indices managed to outperform for yet another session and ended in the green.

The move reaffirms our negative bias on the index, however buying in select heavyweights is capping the damage. Besides, resilience in midcap and smallcap space is also offering opportunities on the long side. We thus recommend maintaining focus on stock selection while keeping a check on leveraged trades.

The Nifty opened on a flat note and traded with a negative bias throughout the day. It ended the day down ~110 points. On the daily charts we can observe that the Nifty is unable to sustain at higher levels. The key hourly moving averages placed in the zone 19590– 19640 is acting as a stiff resistance and until the Nifty does not manage to close above this resistance zone we can expect the weakness to continue. On the downside it can slip towards 19440 – 19320 where support parameters in the form of 78.6% fibonacci retracement level and 20-week moving average are placed.

We have been anticipating a pullback however the attempts have been fragile and thus we shall await for a decisive price confirmation. In terms of levels, 19500 – 19440 is the crucial support zone while 19590 – 19640 shall act as an immediate hurdle zone.

Bank Nifty also closed in the red down ~185 points. The pullbacks towards the key hourly moving averages are being sold into and hence until the Bank Nifty does not sustain above 44700 – 44800 zone, we can expect the weakness to continue. On the downside the Bank Nifty can slip towards 44000 – 43800.

Investors preferred to shun their equity exposure ahead of the monetary policy committee meeting this week. Markets were in weak terrain through the session, as traders trimmed their holding in automobile, oil & gas and metal shares. The stronger dollar once again weighed heavily on the rupee, which indicates that foreign investors may have once again pulled the plug on Indian equities.

Even the robust September GST collections failed to enthuse investors as global worries continue to dictate the trend on local markets. Technically, on daily charts, the Nifty has formed a bearish candle and on intraday charts it is still holding lower top formation, which is largely negative.

For the bulls now, 19580 could be the immediate resistance zone, above which the index could move up till 19700-19725. On the flip side, 19450 and 19480 would act as a strong support zone for the traders. Below 19450, the selling pressure is likely to accelerate and the index could slip till 19375-19350.

Indian bourses began the week on a tepid note at 19,630 by following its weak Asian counterparts. During the day, an attempt of recovery was seen but the higher levels did not last long and Nifty50 ended the day at 19,528.75 down by 109.55 points.

Among sectors, PSU Banking was the best performer followed by the Media; on the flip side, Energy and Auto were the major laggards. Mid and Smallcap indices outperformed the Frontline Index as corrective moves were mainly seen in the heavyweights.

Nifty50 has made a bearish candlestick pattern but at present, it stands close to its strong support level of 19,450, a close below the mentioned level will drag the Index further lower to 19,200 while immediate resistance is 19,630 and for trend reversal, the Index has to give a convincing close above 19,730.

Consolidation continued given the rising US bond yields and dollar index, prompting FIIs to pull funds. While the moderation in oil prices may provide respite on the downside. Infrastructure activity indicates an acceleration led by the rise in core sector output.

The auto stocks declined due to mixed bag monthly data, while a near-normal monsoon will aid positive sentiment for consumption in the near term.