Frontline indices the Sensex and the Nifty ended flat with a positive bias on September 14 as weak global cues and inflation concerns weighed on sentiment.
The market opened higher and traded with healthy gains in the first half but weak global sentiment spilled on to the Indian market, as investors took some money off the table.
Concerns over inflation persisted even as India’s retail inflation softened to 5.3 percent in August, which was within the RBI’s comfort zone, but the wholesale price inflation accelerated to 11.39 percent, snapping the two-month easing trend.
Major global markets also witnessed selling ahead of the US inflation data that is expected to influence the Federal Reserve's decision on the coronavirus stimulus.
The market lost most of its gains in the last few hours of trade to end flat.
Equity barometer the Sensex closed 69 points, or 0.12 percent, up at 58,247.09, while the Nifty finished with gains of 25 points, or 0.14 percent, at 17,380.
Mid and smallcap indices hit their fresh record highs in intraday trade. The BSE midcap index closed 1.09 percent higher, while the smallcap index ended with a gain of 0.63 percent.
Sectors and stocks
Most sectoral indices ended in the green but the show was stolen by the Nifty media index that surged 14.40 percent, powered by a stellar gain in the shares of Zee Entertainment Enterprises (up 40 percent).
The Nifty private bank index closed over a percent higher. On the other hand, Nifty metal, FMCG and financial services indices ended lower.
Over 250 stocks, including TCS, HCL Tech, Nestle, Bajaj Electricals, Britannia Industries, Dish TV, Hindalco Industries, Larsen & Toubro Infotech, L&T Technology Services, IRCTC, Info Edge, Pidilite Industries,
Voltas, SRF and TeamLease Services, hit their fresh 52-week high in intraday trade on BSE.
Nearly 400 stocks, including Meghmani Finechem, Raj Oil Mills, Lancer Container Lines, Axiscades Technologies, Zee Media Corporation, Windsor Machines, Shriram EPC and Siti Networks, hit their upper circuits in intraday trade on BSE.
Tech view
The Nifty has given a breakout of the falling trendline and taken support from the extended trendline, which suggests upside movement in the counter.
On an hourly chart, the index has taken support from 21-HMA (hourly moving average) and sustained above it, which suggests strength for the upside, Palak Kothari, Research Associate at Choice Broking
said.
"Momentum indicators RSI and stochastic are supporting the positive trend in the index. At present, the psychological level of 17,500 could be a resistance, while on the downside, 17,250 may act as support for the index," said Kothari.
Shrikant Chouhan, Executive Vice President - Equity Technical Research at Kotak Securities pointed out that the market is trading within a range and for the bulls, 17,450 would be the range breakout level.
"Above 17,450, the breakout formation could continue up to 17,500-17,525 levels. On the other hand, trading below 17,350 could possibly trigger an intraday correction up to 17,300-17,275 levels," said Chouhan.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said Nifty is in a range of 17,250-17,450.
"Until we cross either side of this range, we will be trading in a sluggish manner. Since the overall trend is positive, a good trading strategy would be to buy this market on dips," said Hathiramani.
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