Closing Bell: Sensex gains, Nifty around 19,350 led by power, realty, metals

Taking Stock: Market ends higher amid volatility; power, realty and metals shine

After a positive start, the market traded in the tight range amid volatility and ended with a marginal gain... Read More

In a volatile trading session, Nifty managed to close above the 19,300 mark at 19,343. It was the second consecutive session of gains. Realty, metal and media stock were in demand while PSU bank, FMCG and pharma shares declined. Jio Financial Services Ltd. Was the largest gainer in the index, rising by 5%. Nifty Mid and small cap 100 Index outperformed the Nifty where they gained 0.34% and 0.54% respectively as against 0.19% rise in the Nifty. Advancing shares outnumbered the declining shares as advance decline ratio stood at 1.37 levels on BSE, highest in last five days. Nse Cash market volumes were higher as compared to recent average.

Nifty has been directionless for last three trading sessions by oscillating in the narrow range. 50 days EMA placed at 19288 is expected to act as a support for Nifty, while 20 DMA placed at 19452 is expected to act as a resistance. Violation of the range 19452-19288 on the either side could bring momentum back to the Nifty.

Nifty Small cap and Midcap indices have managed to register fresh all time on closing basis. Breadth of the market is very strong as more than 83% of the NSE 500 stocks are placed above their respective 200 DMA.

The Bank Nifty index remains engaged in a struggle between bulls and bears, resulting in a phase of sideways trading. The option data reflects a broad range, with notable open interest concentrations at both the 44000 put option and the 45000 call option. In terms of immediate technical levels, the index faces a resistance obstacle at 44650. A decisive breach above this level is anticipated to ignite a fresh upward movement, potentially steering the index towards the 45000 mark.

In today’s trading session, the Indian indices exhibited a predominantly stagnant performance, with the Nifty managing to sustain its position at 19350 while the Bank Nifty held steady at 44450. Notably, the Nifty chart displayed the formation of a hammer pattern on the daily charts, indicating potential bullish sentiment. Furthermore, the Nifty demonstrated resilience by maintaining the 19300 level during intraday trading.

Looking ahead, the pivotal support level is anticipated at 19250, while notable resistance levels are situated within the range of 19500 to 19550.

The India VIX currently stands at 12.22, registering a minor decline of 1.39%. This indicator of market volatility underscores the prevailing subdued market conditions. As market participants navigate this nuanced scenario, exercising circumspection and capitalizing on well-chosen opportunities emerge as prudent practices.

The present market sentiment reflects a sideways inclination, prompting traders to adopt a prudent, stock-specific strategy.

The trading session began with a gap up, followed by range-bound trades as the Indian equities experienced a lacklustre performance. The support at the lower end remains solid at 19245, serving as a barrier to prevent further declines. On the upper end, resistance is placed at 19425; a breach of this level might lead to a more dependable rally. Expect a range-bound trading unless a clear breakout occurs on either side.

Markets remained range bound for the second consecutive session and ended almost unchanged. After the flat start, Nifty traded in a narrow band and finally settled at 19340 levels. A mixed trend on the sectoral front kept the traders occupied wherein realty and metal posted decent gains while FMCG and pharma settled marginally lower. Meanwhile, continued buying in the midcap and smallcap space boosted sentiment.

The recent stability on the global front is prompting this pause but the tone is still negative. And, we need a decisive close above the short term moving average i.e. 20 EMA in Nifty, which currently lies around the 19,430 level, to ease the pressure. Meanwhile, we reiterate our view to stay stock-specific and keep a check on leveraged trades.

Markets were extremely range-bound due to lack of investors' participation amid sluggish Asian market cues. Currently, there are no fresh positive triggers to recharge the markets, hence investors are preferring to take selective bets. Also, FIIs taking out money from local shares has prompted traders to stay cautious.

Technically, the market is witnessing a positive consolidation near the 50 day SMA (Simple Moving Average). For bulls now, the fresh uptrend rally is possible only after the dismissal of 19380. Above which, the index could rally till 19440-19480. On the flip side, below 19280, the sentiment could change and the market could slip till 19250-19225.

The Indian rupee traded depreciated versus the US dollar amid month-end dollar demand. The ICE dollar index swung between gains and losses in a thin calendar. The dollar is disconnected from US Treasuries which was slightly lower from the previous close while the greenback hovering around 104 levels.

In the short term, spot USDINR is expected to trade between 82.40 to 83.

Throughout the day, Nifty50 remained in a well-defined range and finally settled at 19,342.65 with gains of 36.60 points. Among the sectors, the Realty and Metal were the top gainers while a corrective move was seen in the PSU Banks and FMCG. With a bearish candlestick formation, the Nifty50 has almost faced the resistance of 50DMA while 19,250 continued to remain as a strong support level.

The buoyancy of the global market in anticipation of no further Fed rate hikes, due to subdued economic data, was noticeable in the Indian market as well. However, heavyweight stocks were muted compared to the sector-wise and mid & small-cap upsides. For instance, the chemical sector emerged as a clear winner due to improvements in product prices stemming from stability in the demand and supply scenario. Meanwhile, the metals sector rallied in anticipation of further green shoots from the Chinese government and central banks, aimed at improving the local economy. The benefits from festival demand were evident in sectors such as consumer durables, manufacturing, power, and real estate.

Indian rupee ended marginally lower at 82.70 per dollar versus previous close of 82.62.

Benchmark indices ended higher in the volatile session on August 29.

At close, the Sensex was up 79.22 points or 0.12 percent at 65,075.82, and the Nifty was up 36.70 points or 0.19 percent at 19,342.70. About 2023 shares advanced, 1475 shares declined, and 138 shares unchanged.

UPL, Hindalco Industries, Adani Ports, Hero MotoCorp and Tata Steel were among the top gainers on the Nifty, while the top losers included Bharti Airtel, HUL, Axis Bank, Dr Reddy's Laboratories and Reliance Industries.

Among sectors, metal, power and realty gained 1 percent each, while selling was seen in the PSU Bank, FMCG and pharma stocks.

The BSE midcap and smallcap indices rose 0.5 percent each.

-Underperform rating, target at Rs 920 per share
-Management focus is on building diversified retail NBFC targeting underserved customers
-Company is targeting 15% AUM CAGR over FY23-28
-Company expects higher NIM, operating leverage gains & lower credit cost to lift RoA
-Company expects RoA at 3.3-3.5% by FY28
-Expect low interest earning assets, higher opex to capital RoA below 1.5% over FY23-26
-At 0.85x FY24 BV, risk reward appears unattractive