The market continued its winning streak for the sixth straight session on September 8 to close near its two-month high amid buying across sectors barring healthcare, once again shrugging off weak global cues.
At close, the Sensex was up 333.35 points, or 0.50 percent at 66,598.91, and the Nifty was up 93 points, or 0.47 percent, at 19,820.
Despite weak global cues, the market opened positive and extended the gains as the day progressed. At mid-session, the Nifty reclaimed the crucial level of 19,800 led by gains in oil & gas, capital goods, power and realty names.
For the week, the Sensex and the Nifty rose nearly 2 percent each, their best weekly gains in almost 2 months.
Coal India, NTPC, BPCL, Tata Motors and Larsen and Toubro were among the major Nifty gainers. Losers included UPL, Eicher Motors, Apollo Hospitals, ITC and UltraTech Cement.
On the sectoral front, capital goods, oil & gas, power and realty were up 1.5-2 percent each, while the pharma index was down 0.3 percent.
The BSE midcap index rose 0.9 percent and the smallcap index 0.4 percent.
A long build-up was seen in Power Finance Corporation, REC and Havells, while a short build-up was seen in Zee Entertainment Enterprises, Chambal Fertilisers and Chemicals and Glenmark Pharma.
Among individual stocks, a volume spike of more than 300 percent was seen in IRCTC, BHEL and Havells India.
Aurionpro Solutions, Oberoi Realty, Kolte-Patil Developers, Graphite India, Sonata Software, TVS Motor, Havells India, Bank Of Maharashtra, Coal India, Mazagon Dock Shipbuilders, DLF, Chalet Hotels, IDBI Bank, Bikaji Foods International, Federal Bank, Indian Railway Finance Corporation, touched their 52-week high on the BSE. Click to View More
Outlook for September 11
Amol Athawale, Vice President-Technical Research, Kotak Securities
The benchmark indices once again defied weak Asian and European market trends to post solid gains, as a lack of opportunity in key economies is prompting investors to increase their bets on India. Investors are increasing exposure to stocks of companies that are likely to play a major role in boosting the economy.
Technically, after a promising reversal formation, the Nifty has been holding a higher bottom formation and is comfortably trading above 50 and 20-day Simple Moving Average (SMA), which is positive. It also formed a long bullish candle on the weekly charts, which supports uptrend from the current levels.
For the trend-following traders, 19,700-19,650 will be the key support above which the Nifty can move to 19,900. A further upside can lift the market to 20,000. On the flip side, below 1,9650, the uptrend will be vulnerable and the Nifty can see a short-term correction till the 50-day SMA or 19,550-19,500.
The Bank Nifty crossed the 50-day SMA after a long time, which is positive. It also formed a higher bottom formation, which supports further uptrend. For the positional traders, 44,700 or 50-day SMA will be the sacrosanct support zone, above which the index can rise to 45,600-45,900. On the flip side, below 44,700 it can retest 20-day SMA or 44,300-44,000.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
On the hourly chart we can observe that the Nifty has reached the upper end of the rising channel and hence a consolidation is likely in the upcoming week. The range of consolidation is likely to be 19,850 –19,670.
Daily and hourly momentum indicators have a positive crossover, which is a buy signal and thus is likely to be only a consolidation. A dip should be used as a buying opportunity.
On the upside, we expect 19,900, which is around the swing high the Nifty touched in July. While support is at 19,630–19,670, hurdle is at 19,860–19,900.
After breaking out of the consolidation range in the previous session, Bank Nifty witnessed follow-through buying interest. Momentum indicator has a positive crossover, which is bullish sign. Overall, we expect the positive momentum to continue and expect targets of 45,500 in the short term.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
