Closing Bell: Nifty above 19,500, Sensex gains 241 pts; all sectors in the green

Taking Stock: Nifty above 19,500, Sensex up 241 pts; midcap, smallcap hit fresh high

The broader indices, BSE midcap and smallcap, outperformed the benchmark and rose nearly a percent each to touch fresh 52-week highs... Read More

After a gap up opening Nifty came down near Friday’s closing and bounced higher and managed to close the session near day’s high. The Nifty has managed to close above the initial resistance of 19500 and Bank Nifty has also shown some strength and has closed above 44500 levels.

The market has traded Positive with the Sensex gaining 0.37 percent and closed at 65628.14 and Nifty was up by 0.48 percent intraday and closed at 19528.80 levels whereas Bank Nifty was up by 0.32 percent and settled at 44578.30.

Index has a support around 19225-19275 zone. Coming to the OPen Interest (OI) Data, on the call side, the highest OI observed at 19600 followed by 19700 strike prices while on the put side, the highest OI is at 19400 strike price. On the other hand, Bank Nifty has support at 43900-44100 while resistance is placed at 44900-45100 levels.

Nifty continues to stay in the bullish territory as the index has maintained its position above the channel breakout level. The trend is expected to stay positive as long as it remains above 19,525. On the upside, the index could potentially extend its gains towards 19,750. Conversely, if it falls below 19,400, we may witness a period of consolidation.

Nifty opened higher and held on to steady gains through Sept 04 barring a small downmove in the morning. At close, Nifty was up 0.48% or 93.5 points at 19528.8. Volumes on the NSE were higher than recent average. Broad market indices rose more than the Nifty even as the advance decline ratio was high at 1.69:1.

Global Stocks were higher on Monday following a report that signaled the US jobs market, while still healthy, shows some signs of cooling, raising hopes for an easing of interest rate hikes. Announcement of fresh stimulus measures from China - cutting down-payment requirements for first and second-time home buyers and lowered rates on existing mortgages also helped sentiments.

Nifty rose for the second day, building on the gains of the previous session. US markets are shut on Monday due to labour day holiday. Nifty could now face resistance in the 19584-19646 band while 19310 could offer support.

Recent releases of domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment.

The Nifty opened gap up and consolidated for most part of the day. It closed with gains of ~93 points. On the daily charts we can observe that the Nifty is stretching on the upside. The intraday dip was bought into which indicates buying interest at supports and also suggests bullishness. The daily momentum indicator has a positive crossover which is a buy signal.

We believe that the Nifty is in the process of retracing the fall it has witnessed from 19992 – 19223 and hence the pullback is likely to last over the next few trading sessions. On the upside we expect the Nifty to target levels of 19650. In terms of levels, crucial support zone is placed at 19420 – 19360 and immediate hurdle is placed at 19650 – 19700.

Bank Nifty has also witnessed follow through buying interest from the previous trading session. It has managed to close above the 20- and 40-day moving averages which is a sign of strength. We expect the Index to continue its pullback and towards the daily upper Bollinger band placed around 45000. The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting that the positive momentum is likely to continue.

Markets extended rebound amid volatility and gained nearly half a percent. After the initial uptick, Nifty oscillated in a range and finally settled around the day’s high at 19,534 levels. All key sectors contributed to the move wherein metal, IT and energy were among the top gainers. Meanwhile, the market breadth was inclined strongly on the advancing side, thanks to the upbeat tone in midcap and smallcap pack.

Indications are favorable for further rebound as Nifty has surpassed a trend line resistance while holding the support zone of short-term average i.e. 20 EMA. However, a hurdle of around 19,650 may cap the upside and prompt some profit taking too. Amid all, we reiterate our view to focus on stock selection and preferring auto, IT and metal for long trades.

Although the markets commenced the week on a strong note; in the opening trade itself, the Index erased all its gains. However, the strong performance of the Metal stocks helped the Index recover. In the mid-session, IT and PSU Banks took the lead and pushed the Index further higher to settle the day at 19,528.80 with gains of 93.50 points.

All the sectors participated in the rally except for FMCG. A streak of outperformance has been extended by the broader markets. On the daily chart, Nifty50 has made a DOJI candlestick pattern which generally indicates a reversal of the trend. A level of 20&50DMA will act as a support which is 19,430 while immediate resistance stands at 19,580.

Indian rupee ended flat at 82.74 per dollar on Monday against Friday's close of 82.71.

: Benchmark indices ended higher for the second consecutive session on September 4 amid buying across the sectors.

At close, the Sensex was up 240.98 points or 0.37 percent at 65,628.14, and the Nifty was up 93.50 points or 0.48 percent at 19,528.80. About 2210 shares advanced, 1425 shares declined, and 182 shares unchanged.

Coal India, Wipro, HCL Technologies, UltraTech Cement and Tata Steel are among the top gainers on the Nifty, while losers included Axis Bank, M&M, Nestle India, ITC and Asian Paints.

All the sectoral indices ended in the green with power, metal, auto, realty, oil & gas and PSU Bank up between 1 and 2.8 percent.

The BSE midcap and smallcap indices rose nearly1 percent each.

-Equal-weight rating, target at Rs 2,250 per share
-Uday Kotak Has resigned from the post of MD & CEO, is now non-executive director
-Bank has reportedly proposed two names to RBI in order of priority for the posts
-In the interim, Dipak Gupta assumes MD & CEO duties
-Think bank remains well placed to capture growth opportunities in macro upcycle
-Bank has also been driving a loan mix shift toward higher margin assets
-Prefer large banks given better relative valuations

Bharat Heavy Electricals Limited (BHEL) has won a prestigious order for the Electro-Mechanical (E&M) works of the country’s largest capacity hydropower project of 2,880 MW Dibang Multipurpose Project in Arunachal Pradesh.