Indian equity market ended on a flat note in the highly volatile session on October 7, as investors remain concerned as the rupee hit fresh high and monthly US nonfarm payroll numbers which are due later today.
After a weak start, the equity market remained in negative territory for the most part of the session, however, last-hour buying helped the indices to recover and close on a flat line.
BSE Sensex touched a low of 57,851.15, intraday, before closing at 58,191.29, down 30.81 points or 0.05%.
And, Nifty50 index touched an intraday low of 17,216.95, before closing at 17,314.70, down 17.10 points or 0.10%.
"Prior to the release of the US jobs data, the domestic market traded with cuts in line with its global counterparts. Stronger-than-anticipated job data may lead to a market decline as it could give the Fed more reasons to focus on inflation," said Vinod Nair, Head of Research at Geojit Financial Services.
"Following OPEC+'s announcement of supply reductions, crude prices have continued to rise, while the rupee has dropped to a fresh low as a result of hawkish remarks from Fed officials," he added.
Stocks and sectors
Titan Company, Power Grid Corporation, ONGC, IndusInd Bank, and Grasim Industries were among the top Nifty gainers. Tata Consumer Products, BPCL, M&M, UltraTech Cement, and Coal India were the top losers.
Among sectors, Nifty FMCG, Information Technology, metal, and pharma are down 0.4-0.7 percent.
Also Read: Rupee weakens past 82 per dollar mark for the first time
On the BSE - metal, healthcare, oil & gas, and Information Technology were down 0.5 percent each, while realty, power, and capital goods ended in the green.
BSE midcap index ended flat, while smallcap index rose 0.3 percent.
A short build-up was seen in Ramco Cements, Biocon and Jubilant FoodWorks and long build-up was seen in the Titan Company, City Union Bank and Ambuja Cements.
On the BSE, more than 150 stocks touched their 52-week high on the BSE including Chalet Hotels, Jai Corp, Kolte-Patil Developers, Phoenix Mills, Praj Industries and Ujjivan Financial Services.
Among individual stocks, a volume spike of more than 200 percent was seen in Titan Company, Hero MotoCorp and Berger Paints.
Also Read: TCS Earnings Preview | Revenue to jump 17% over last year as margins to improve sequentially
Outlook for October 10
Rupak De, Senior Technical Analyst at LKP Securities:
The benchmark Nifty remained volatile before closing on a muted note. However, the index has closed above 50 EMA, confirming the ongoing positive trend.
Going forward, the trend is expected to remain positive as long as the Nifty sustains above 17300. On the higher end, the 17600-17700 zone may act as resistance, whereas, on the lower end, support is visible at 17200.
The Bank Nifty remained volatile throughout the day. However, the index has managed to sustain above 50 EMA on the daily chart. The RSI is entering a bullish crossover. Over the short term, the index may move towards 40000. On the lower end, support is visible at 38500.
Ajit Mishra, VP - Research, Religare Broking
Markets took a pause after the recent rebound and ended almost unchanged, in absence of any major trigger. After a flat start, the Nifty index hovered in a narrow range and finally settled closer to the day’s high to close at 17,314.65 levels.
Most sectoral indices traded in sync with the benchmark and ended flat. Meanwhile, stock-specific movement across sectors kept participants busy.
Global markets, especially the US, are still not offering indications for a sustained recovery, so volatility is here to stay and participants should plan overnight positions accordingly.
Meanwhile, on the index front, the tone would remain positive till the Nifty holds 17,100. We feel the prudent approach is to focus on top-performing stocks from across sectors and use intermediate dips to add them instead of chasing laggards, in hope of a rebound.
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