Closing Bell: Nifty above 19,700, Sensex gains 173 points; mid, smallcaps shine

Taking Stock: Bulls back in action; Sensex rises 173 points, Nifty above 19,700

Major gainers on the Nifty were Coal India, ITC, Larsen & Toubro, Cipla and LTIMindtree, while losers were Titan Company, Grasim Industries, Hero MotoCorp, SBI and BPCL... Read More

The Bank Nifty bulls displayed resilience by defending the key support level at 44,200, which coincided with the rising trendline support. However, the index is currently trading below its 20-day moving average (20DMA) positioned at 45,000. A decisive break above this level could trigger significant short-covering.

Currently, the Bank Nifty is trading within a broad range of 44,200 to 45,000. A clear break on either side of this range will likely lead to trending moves. Nevertheless, within this range, the overall sentiment remains bullish, suggesting that a "buy on dip" approach may be favorable.

The Nifty opened the gap down and witnessed a sharp correction thereafter. Soon it witnessed a recovery which lasted throughout the day and the Nifty closed in the green up ~51 points. It has managed to close above the 40-day moving average (19630) and the 61.82% Fibonacci retracement level (19604) which is a sign of strength.

The daily momentum indicator has reached the equilibrium line indicating that the correction has matured, and it can start the new cycle which is a bullish sign. Thus, both price and momentum indicators suggest that today’s low of 19554 shall be a short-term bottom and the index is likely to witness a pullback over the next few trading sessions. In terms of levels, 19600 – 19550 is the crucial support zone while 19880 – 19900 shall act as an immediate hurdle zone.

Bank Nifty held on to its 78.6% Fibonacci support (44360) and witnessed a sharp bounce back. We believe that a short-term bottom is in place and the Bank Nifty is likely to witness a pullback over the next few trading sessions. On the upside we expect the Bank Nifty to pull back towards 45000 initially and above that potentially towards 45200.

The Nifty showed a strong recovery during the day, finding support at the 50EMA. The day concluded with the formation of a bullish engulfing pattern. On the upper side, resistance is situated at 19,750. A clear breakout is necessary to anticipate a substantial rally in the index.

A decisive move beyond 19,750 could potentially push the index towards 19,900. On the downside, support is established at 19,600.

Markets remained volatile for yet another session and ended marginally higher. After the initial downtick, Nifty drifted further lower in early hours but recovery in select heavyweights not only pared losses but also pushed the index in the green. Consequently, Nifty settled around the day’s high at 19716.45 level; up by 0.26%. Meanwhile, a mixed trend continued on the sectoral front wherein pharma, realty and FMCG were among the top gainers. The broader indices outperformed the benchmark and gained in the range of 0.8%-1%.

The impending rebound in select heavyweights like Reliance and ITC largely contributed to the recovery. We are eyeing 19,750 in Nifty as an immediate hurdle and its break may prompt further rebound else profit taking would resume. Amid all, the scheduled monthly expiry of derivative contracts would keep the volatility high so plan your trades accordingly.

Indian bourses have witnessed a complete reversal in today's trade as Nifty50 started the day on a tepid note and weakness in the banking counters put further pressure on the Index to breach its strong support of 19,600. In the 2nd half of the trading session, the turnaround was seen across the board which supported the Index to recover all its losses to end the day at 19,716.45 with gains of 51.75 points.

On sector-wise performance, Pharma was the top gainer followed by PSU Banks and FMCG. Broader indices outperformed the Nifty50 as Midcap and Smallcap indices ended the session with gains of 0.75% & 0.98% respectively.

The Nifty50 has formed a big positive candle on the daily chart with a minor upper shadow and a major lower shadow. As per technical terminology, this candle is known as Bullish Engulfing which is considered as a trend reversal pattern. The level of 19,635 will continue to act as strong support while the higher side is shifted to 19,780.

The market inched higher in the second half, driven by positive openings in European markets. Concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation.

The FMCG and Pharma sectors outperformed, with investors adopting a defensive approach to navigate global challenges. However, persistent outflows of foreign funds and rising US bond yields are expected to keep the broader indices in bleak terrain, in the near-term.

Indian rupee ended flat at 83.22 per dollar on Wednesday versus Tuesday's close of 83.23.

Benchmark indices ended higher in the volatile session on September 27 with Nifty above 19,700.

At close, the Sensex was up 173.22 points or 0.26 percent at 66,118.69, and the Nifty was up 51.80 points or 0.26 percent at 19,716.50. About 1921 shares advanced, 1616 shares declined, and 143 shares unchanged.

Major gainers on the Nifty were Coal India, ITC, Larsen & Toubro, Cipla and LTIMindtree, while losers were Titan Company, Grasim Industries, Hero MotoCorp, SBI and BPCL.

Among sectors, PSU Bank, capital good, FMCG, realty and healthcare indices up 0.5-1 percent, while some selling was seen in the oil & gas names.

The BSE midcap and smallcap indices rose 0.6 percent each.

The initial public offering (IPO) by JSW Infrastructure, part of the JSW Group, has been subscribed 17.15 times on the final day of bidding.

Retail investors, who have 10 percent reservation in the public issue, have bought 8.89 times the allotted quota, while the portion set aside for high networth individuals, which is 15 percent of the total offer, was subscribed 13.85 times.

Qualified institutional buyers (QIB), who are generally considered medium-to-long term investors, have bid 21.55 times their reserved portion which is 75 percent of the issue size.

-Buy rating, target raised to Rs 12,400 from Rs 10,800 per share
-Expect improved product mix to increase EBITDA margin in H2FY24 & FY25
-Raise EBITDA margin estimate by 15 bps & 100 bps
-Upgrade EPS estimate by 3% & 15% for FY24 and FY25 respectively
-Expect strong volume growth due to a healthy orderbook of over 3.50 lakh
-Expect margin improvement, market share gain & 36% EPS CAGR over FY23-FY25

Ahluwalia Contracts (India) has secured orders for construction of expansion of Max Super Specialty Hospital at SAS Nagar, Mohali (Punjab) on EPC Basis for Rs 215.46 crores and construction of Max Super Specialty Hospital at Sector-56, Gurugram, Haryana on EPC Basis for Rs 616.94 crore.