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Taking Stock | Market ends marginally higher amid volatility; oil and gas stocks rally

BSE midcap index ended on a flat note, while smallcap index gained 0.5 percent.

September 27, 2022 / 04:32 PM IST

Indian benchmark indices ended on a flat note in the highly volatile session on September 27. After a positive start, the market remained in positive mode for most of the session. However, last-hour selling erased all the gains and the market ended with marginal losses.

At close, the Sensex was down 37.70 points or 0.07 percent at 57,107.52, and the Nifty was down 8.90 points or 0.05 percent at 17,007.40.

The Sensex and Nifty touched a high of 57,704.57 and 17,176.45, intraday, respectively.

Cipla, Tata Consumer Products, BPCL, Power Grid Corporation and Shree Cements were among the top gainers on the Nifty. Losers included Hero MotoCorp, Adani Ports, Titan Company, Tata Steel and Kotak Mahindra Bank.

Among sectors, Nifty auto, bank and metal indices shed 0.5 percent each, while buying was seen in pharma, FMCG and IT names.

Stocks and sectors

On the BSE - healthcare, oil and gas, FMCG and IT added 0.5-1 percent, while capital goods, bank, metal and power indices fell 0.5 percent each.

BSE midcap index ended on a flat note, while smallcap index gained 0.5 percent.

A long build-up was seen in Indraprastha Gas, Mahanagar Gas and Gujarat Gas, while a short build-up was witnessed in Can Fin Homes, Hero MotoCorp and MCX India.

Among individual stocks, a volume spike of more than 900 percent was seen in Ambuja Cements, Delta Corp and Can Fin Homes.

Biocon, Gayatri Projects, Graphite India, Gland Pharma, Mastek, Mercator and Symphony were among the stocks that touched 52-week low on the BSE.

Outlook for September 28

Mohit Nigam, Head - PMS, Hem Securities:

Benchmark Indices closed slightly down with Nifty 50 closing 0.05 percent down and Sensex closing 0.07 percent down today. Selling pressure was witnessed in Auto, financial, capital goods and power stocks while some buying was witnessed in Pharma, FMCG and IT stocks.

IT stocks are showing strength from the past few sessions with the strengthening of USD against INR. IT companies' result will start coming from mid October and it may trigger the next move in this sector. Investors should start accumulating good quality IT stocks in a staggered manner.

On the technical front, immediate support and resistance in Nifty 50 are 16,800 and 17,400 respectively. Immediate support and resistance in Bank Nifty are 38,000 and 39,000, respectively.

Rupak De, Senior Technical Analyst at LKP Securities

The benchmark Nifty remained range bound ahead of the RBI policy meet. The index briefly slipped below 16,950 as it failed to sustain at the lower level leading to a close above 17,000. On the lower end, bulls have managed to protect the 200 DMA on a closing basis.

The momentum indicator is in a bearish crossover. The trend remains weak; however, the proximity to the crucial support may induce a pullback in the market.

On the higher end, resistance is visible at 17,150-17,200. Above 17,200, the Nifty may move towards 17,500. On the other hand, a decisive fall below 16,950 may trigger a panic button.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The benchmark indices witnessed a volatile trading session, the Nifty ended 9 points lower while the Sensex was down by 37 points. Among sectors, profit booking continued in Metal and Financial stocks, both indices registered profit booking at higher levels. Whereas, some buying was seen in selective Pharma and IT stocks.

Technically, after a sharp fall, the index opened in the green but corrected sharply. After the early morning selloff, the index witnessed range-bound activity. Lower top formation intraday charts and bearish candle on daily charts indicating continuation of weakness in the near term.

However, momentum indicators suggest a strong possibility of pullback rally from the current levels. We are of the view that the bearish sentiment in the market is still intact and a fresh pullback rally possible if the index succeeds to trade above 200-day SMA (Simple Moving average) or 16940/56950. Above which, the index could retest the level of 17150-17200/57500-57700.

On the flip side, below 16,940/56,950, it could slip till 17,850-17,800/56,600-56,500. The intraday texture of the market is non-directional, hence level-based trading would be the ideal strategy for the day traders.

Disclaimer: The views and investment tips expressed by 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.
Rakesh Patil
first published: Sep 27, 2022 04:11 pm