Closing Bell: Nifty around 20,100, Sensex gains; oil & gas, realty, metals shine

Taking Stock: Market fails to hold record levels, ends marginally higher; mid, smallcaps outperform

The broader indices outperformed the main indices, with BSE midcap and Smallcap indices gaining one percent each... Read More

Nifty remained range-bound throughout the day as the index failed to deliver any decisive breakout from the recent range. The "buy on dips" strategy is expected to be the preferred approach until Nifty falls below 19,900 decisively. On the upside, call writers at 20,100 are likely to defend the index against further upward movement. A sustained trade above 20,100 could potentially trigger a significant rally in the short term.

Nifty fluctuated through September 14 after reaching record highs in early trade. Nifty rose for the second consecutive session and closed 0.17% or 33.3 points higher at 20103.3. Volumes on the NSE were the lowest in several days as buying interest in largecaps petered out at higher levels. Midcap and Smallcap indices gained more than a percent even as the advance decline ratio rose to 2.70:1.

Asian stocks rose on Thursday, as traders felt that a small upside surprise for U.S. inflation was unlikely to push up interest rates. European markets were mixed on Thursday as investors in the region waited on a crucial decision from the European Central Bank on whether to raise euro zone interest rates for a 10th straight meeting.

India's domestic air traffic in August rose 22.81 percent compared to the same month last year but was flat compared to July. Air traffic increased 30.55 percent to 10.06 crore passengers in January-August period as compared to last year's data.

Nifty rose on September 14 but could not hold on to all the gains. In the process it formed a spinning top like pattern suggesting possibility of formation of a short term top. Markets did not witness large scale buying in index pivotals after Nifty made new record highs. Nifty could remain in the 20168-19989 band in the near term. A breach of 19989 could take the Nifty to 19833.

While the north-bound journey continued the uptick lacked the firepower as seen in recent sessions as valuations are becoming expensive and investors are taking a cautious route. Rising global crude oil prices are also making investors jittery as this could stoke inflation and force central banks worldwide to maintain the rate hike regime.

Despite early volatility and a range-bound trend thereafter, metals, oil & gas and realty shares sparkled, indicating that traders are willing to take selective bets. On intraday charts the market is holding a higher bottom formation which is indicating that the uptrend wave is likely to continue in the near future.

As long as the Nifty is trading above the 20000 mark the positive sentiment is likely to continue till 20180-20225 levels. On the flip side, below 20000, the selling pressure could accelerate and drag the index up to 19920-19900.

The market traded range-bound after touching a new high as higher-than-expected US inflation and anticipation of hawkish ECB policy meetings later today impacted investor sentiment. Concern over valuation and inflation trajectory due to increasing oil prices may navigate the market into a consolidation phase in the near-term.

Markets traded volatile on the weekly expiry day and ended marginally in the green. After the initial uptick, profit taking in heavyweights trimmed the gains, followed by range bound movement till the end. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein metal and realty posted strong gains while FMCG ended on a muted note. Besides, the continued recovery on the broader front further boosted the sentiment.

The rotational buying across sectors is helping the index to inch gradually higher amid mixed global cues. We are eyeing 20,300 in the Nifty and expect the 19800-19950 zone to offer cushion in case of any dip. Meanwhile, participants should maintain their focus on stock selection and prefer index majors.

Banks, Autos & Realty stocks helped Benchmark Indices close in the Green as we approached the festive season. Several stocks were seen buzzing across sectors in the broader markets in today's trade with interested buying witnessed in Sugar stocks on reports of dip in production from Maharashtra on account of deficient rains. Positive Data Points across key metrics in August kept investors on their toes.

Indian rupee ended marginally lower at 83.03 per dollar versus previous close of 82.99.

Benchmark indices ended marginally higher in the volatile session on September 14.

At close, the Sensex was up 52.01 points or 0.08 percent at 67,519.00, and the Nifty was up 33.10 points or 0.16 percent at 20,103.10. About 2302 shares advanced, 1243 shares declined, and 145 shares unchanged.

UPL, Hindalco Industries, ONGC, M&M and Eicher Motors were among the top gainers on the Nifty, while losers were Asian Paints, Coal India, ITC, LTIMindtree and Britannia Industries.

On the sectoral front, FMCG index ended with marginal cut, while oil & gas, realty, metal and PSU Bank up 1 percent each.

The broader indices outperformed the main indices with BSE midcap and Smallcap indices gained 1 percent each.

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Indian Rupee fell on Thursday on positive Dollar and rising crude oil prices. This may impact the external payments. However, positive tone domestic equities prevented a sharp fall in the domestic currency. US Dollar gained on hotter than expected CPI raised rate hike concerns.

We expect Rupee to trade with a slight negative bias on expectations that US Dollar may rise further. Elevated crude oil prices and selling pressure from foreign investors may put further pressure on Rupee. However, any intervention by the Reserve Bank of India and positive domestic markets may support Rupee at lower levels. Traders may remain cautious ahead of retail sales and PPI data from US which is expected softer than previous month. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.30.

-Buy rating, target at Rs 3,300 per share
-P&W issue larger than expected
-3,000 engines to be recalled versus 1,200, turnaround time of 300 days versus 60 earlier
-This represents additional 26 percent of fleet getting grounded for 300 days
-However, impact should ideally be spread over next 3 years
-Company will see higher ASK impact, but better yields & compensation
-Expect company to report minor net loss in Q2FY24 versus estimate of PAT breakeven