Indian markets ended lower for the third consecutive session on September 6, with Nifty falling near 24,800 while the Sensex broke 81,000-mark ahead of the US jobs data, set to be released later today.
At close, the Sensex was down 1,017.23 points or 1.24 percent at 81,183.93, and the Nifty was down 292.95 points or 1.17 percent at 24,852.15.
For the week, BSE Sensex and Nifty50 indices shed 1.5 percent each.
Biggest Nifty losers included SBI, HCL Technologies, NTPC, ICICI Bank and BPCL, while gainers were Asian Paints, JSW Steel, Bajaj Finance, LTIMindtree and Divis Labs.
All the sectoral indices ended in the red with auto, PSU Bank, oil & gas, media, telecom, IT, realty, capital goods down 1-3 percent.
The BSE midcap index shed 1.4 percent, while the smallcap index declined 1 percent after hitting a fresh record high.
In today's fall, investors' wealth eroded by around Rs 5.31 lakh crore, as the market capitalization of BSE-listed companies slipped to Rs 460.40 lakh crore, from Rs 465.68 lakh crore in the previous session.
Nearly 290 stocks touched their 52-high on the BSE, including, Ajanta Pharma, Akzo Nobel, Colgate Palmolive, Emami, Gillette India, Godfrey Phillips, Godrej Industries, Jubilant Pharmova, Maharashtra Scooters, Muthoot Finance, NESCO, Persistent Systems, PI Industries, Piramal Pharma, Suven Pharma, VST Industries, among others. Click to view full list
Outlook for September 9
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Nifty opened on a flat note and witnessed a sharp decline. It closed in the red down ~280 points. On the daily charts we can observe that the Nifty on account of the fall has reached the crucial support zone 24850 – 24800 which coincides with the 20-day moving average and the 38.2% Fibonacci retracement level. We expect the Nifty to hold on to this support zone and hence shall continue to maintain our short-term positive stance on the Nifty. The immediate hurdle is placed at 25000.
The Banking sector led the fall in today’s trading session. It has decisively closed below the short-term averages and the daily momentum indicator has a negative crossover which is a sell signal. Thus, pullback is likely to get sold into. In terms of levels, 50800 – 50949 shall act as an immediate hurdle zone while 50000 – 49700 is the crucial support zone from short term perspective.
Ajit Mishra – SVP, Research, Religare Broking
On Friday, markets came under pressure and closed over a percent lower, weighed down by weak global cues. After a flat start, the Nifty gradually declined throughout the day, breaking multiple support levels to end at 24,852.15. The sell-off was broad-based, with the banking and energy sectors taking the biggest hit. Broader indices also saw declines, losing more than a percent each.
The recent weakness in US markets has stalled the momentum in Indian markets, causing participants to become cautious ahead of the upcoming jobs data. With the Nifty slipping below the crucial 20-day exponential moving average (DEMA), further downside is likely, with key support around 24,500 at the 50 DEMA. Given the circumstances, it is advisable to avoid taking aggressive positions and to apply strict stop losses on existing trades.
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