Closing Bell: Nifty above 19,600, Sensex gains 100 pts; oil & gas, FMCG, pharma rally

Taking Stock: Last-hour buying pushes Nifty above 19,600; Sensex gains 100 points

Tata Consumer Products, Divis Laboratories, Bharti Airtel, Cipla and HDFC Bank were among the top gainers on the Nifty, while losers included Axis Bank, Hindalco Industries, Tata Steel, ICICI Bank and NTPC... Read More

After a flat opening Nifty came down near the first support level of 19500 and bounced towards the high of the day. The Nifty has managed to close above the initial resistance of 19600 but bank nifty closed below 44500 on the day of 1st weekly expiry on Wednesday.

The market has traded positive with the Sensex gaining 0.15 percent and closed at 65880.52 and Nifty was up by 0.18 percent intraday and closed at 19611.05 levels whereas Bank Nifty was down by 0.28 percent and settled at 44409.10.

Among sectors Nifty FMCG, Nifty Pharma and Nifty consumption ended in green while Nifty metal, Nifty PSU Bank and Nifty IT ended on the lower side. In Nifty stocks, Divis Lab, Bharti Airtel and Cipla were the top gainers while Axis Bank, Hindalco and Tata Steel were the prime laggards.
INDIA VIX was negative by 1.39 percent intraday and settled at 10.67.

Index has a support around 19450-19500 zone. Coming to the 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 43900-44100 while resistance is placed at 44800-45000 levels.

The Nifty opened on a flat note and witnessed volatile price action during the day. It witnessed selling pressure during the first half of the day while an equally sharp pullback during the second half helped the Nifty to close with gains of ~42 points. Today the intraday correction found buying interest at the key hourly moving averages placed around 19500. We believe that the overall trend is positive, and these dips are likely to be bought into. On the upside we expect the Nifty to target levels of 19650 – 19700 from short term perspective. In terms of levels, 19490 – 19520 shall act as a crucial support and 19650 – 19700 shall act as immediate hurdle.

Bank Nifty has witnessed three days of consolidation. It witnessed a pullback though closed in the negative. On the downside 44200 proved to be a strong support and the Bank Nifty witnessed a sharp pullback from the support. Going forward we expect the positive momentum to continue and expect the Bank Nifty to target levels of 45000 – 45200 from short term perspective. The daily and hourly momentum indicators are providing divergent signals which can lead to a sideways consolidation however the downside appears limited.

Nifty swung between gains and losses to end Sept 06 higher. At close, Nifty was up 0.18% or 36.2 points at 19611.1. Volumes on the NSE were on the higher side compared to the recent average. Smallcap index ended marginally in the negative underperforming the Nifty after a gap. Advance decline ratio fell but remained above par at 1.07:1.

Global stocks fell on Wednesday after tentative growth in China and Europe heightened concerns about broader economic momentum. European stocks extended their fall as weak German data and elevated oil prices reignited stagflation worries across the euro area.

Nifty made another high wave candle on a positive day. It showed a good recovery from lower levels for the second day in three. Slow upmove seems to be continuing and the broader market seems to be giving charge to largecaps. Nifty could now remain in the 19645-19452 band for the near term.

Nifty exhibited volatility but achieved a significant milestone by closing above 19600 for the first time in a while. The bullish crossover of the 21EMA and 55EMA has persisted, signaling an ongoing bullish trend. Additionally, a bullish crossover in the RSI highlights the index's strength.

In the short term, Nifty may target levels of 19750 or even 20000. On the downside, key support rests at 19440, and the market is expected to maintain a buy-on-dips strategy as long as this support level holds.

A spike in crude oil reverberated across the globe, reviving concerns about inflation and sparking fears of a Fed rate hike. This led to a surge in U.S. bond yields, causing investors to shift towards the safety of bonds and reversing the buying trend of foreign investors in the domestic market. Nevertheless, the resilience of the domestic markets shone through as investors placed their bets on an improved outlook, ultimately helping the market recover from the initial shock.

Markets traded volatile and ended marginally higher, in continuation to the prevailing recovery phase. After the flat start, Nifty inched gradually lower in the first half however a strong rebound in the select heavyweights pared all the loss. Eventually, it settled around the day’s high at 19611.05 levels. The tone was mixed on the sectoral front wherein FMCG and pharma rebounded swiftly while realty and metal ended lower. The broader indices witnessed a breather after the recent surge and closed almost flat.

Though we are seeing a rebound in the index, it lacks decisiveness due to the prevailing underperformance of the banking pack, which holds considerable weight. Besides, mixed cues from the global front are also weighing on the sentiment. We thus reiterate our view to stay focused on stock selection and avoid going overboard.

Markets witnessed a choppy ride in intra-day trades but selective buying in late trades helped benchmark indices log gains for the 4th straight session. Despite the continuing upward momentum, the market is lacking depth as investors' confidence is a bit shaken due to rising global uncertainty. A fresh rise in US bond yields and the dollar index is creating uncertainty in global markets and in India, and this has once again led to offloading of local shares by the FIIs.
Technically, the Nifty took support near 19500 and bounced back sharply. A promising intraday reversal formation is indicating a strong possibility of further uptrend from the current levels. For the trend following traders now, 19550 would be the trend decider level, above which the index could rally till 19650-19700. On the flip side, fresh selling pressure could be seen after the dismissal of 19550, and below the same it could slip till 19500-19460.

We do not see any impediment in Sebi’s plan to implement one-hour settlement of trades first. It is highly implementable when Clearing Corporations and Depositories are ready with the systems. UPI’s success created confidence in near real time settlement.

Investors will get faster settlement and they will have faster cash in hand. It is like having an UPI where transactions are settled quickly. It will mark a significant leap in transparency and efficiency in the Indian stock market offering investors real time access to their assets which will further attract resident investors in our stock market.

In line with weak Asian currencies and risk-off moods, the Indian rupee depreciated against the US dollar. Worries over inflation and higher trade deficits are back in focus as crude oil reclaimed the level of $90/bbl. Unless the US ISM services index somehow collapses today, expect the dollar to remain in demand. The growth and policy divergence in the developed markets will continue to be in focus as Forex are awaiting the European and Japanese GDP numbers later this week.

In the near term, spot USDINR has resistance at 83.29, lifetime low and support at 82.85. Indian forex traders should be watchful of crude oil and Asian currencies for short-term directions.

Indian rupee ended 10 paise lower at 83.13 per dollar on Wednesday versus Tuesday's close of 83.03.

: Indian benchmark indices ended on a positive note for the fourth consecutive session on September 6 with Nifty above 19,600.

At close, the Sensex was up 100.26 points or 0.15 percent at 65,880.52, and the Nifty was up 36.10 points or 0.18 percent at 19,611. About 1869 shares advanced, 1659 shares declined, and 142 shares unchanged.

Tata Consumer Products, Divis Laboratories, Bharti Airtel, Cipla and HDFC Bank were among the top gainers on the Nifty, while losers included Axis Bank, Hindalco Industries, Tata Steel, ICICI Bank and NTPC.

On the sectoral front, FMCG index rose 1 percent, while pharma, oil & gas and power indices gained 0.5 percnet each. On the other hand, metal, realty and bank indices down 0.4-1 percent.

The BSE midcap and smallcap indices ended on a flat note.