Taking Stock: Nifty ends near 20,000, Sensex gains; midcap, smallcaps post steepest fall in 2023

Top gainers on the Nifty included TCS, L&T, Infosys, Divis Labs and UltraTech Cement, while BPCL, Power Grid Corp, NTPC, Adani Enterprises and Coal India were among the top losers.

Except Information Technology (up 1 percent), all other sectoral indices ended in the red with auto, capital goods, power, oil & gas, metal and realty down 1-3 percent each.

The BSE midcap and Smallcap indices posted a steepest fall in 2023, falling 3 percent and 4 percent, respectively.

Also Read - BSE MidCap, SmallCap indices trade 3% down as investors rush to book profits

A long build-up was seen in TCS, L&T and Infosys, while a short build-up was seen in ITC, GMR Airports Infrastructure and Vodafone Idea.

Among individual stocks, a volume spike of more than 400 percent was seen in Hindustan Copper, India Cements and Indiabulls Housing Finance.

More than 250 stocks touched their 52-week high on the BSE, including Axis Bank, Adani Power, Karnataka Bank, ITI, Wipro, Central Bank Of India, SJVN, Rail Vikas Nigam, HCL Technologies, Larsen & Toubro, Power Grid Corporation OF India, Exide Industries, among others.

Outlook for September 13

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty opened gap up, however it was unable to sustain at higher levels and sold off. It closed marginally in the red down ~3 points after rising for seven consecutive trading sessions. The fall was more severe in the broader market with the Midcap and Small Cap Index correcting ~4% each. We believe that the index is due for consolidation after a sharp rally in the last seven trading sessions. The range of consolidation is likely to be 20100 – 19800.

Momentum indicators on the daily and hourly time frame are providing divergent signals which could lead to sideways consolidation. Thus, both price and momentum indicator suggest that there could be consolidation over the next few trading sessions. Overall, the short-term outlook is positive and this consolidation is likely to be used as a buying opportunity. In terms of levels, 19865 – 19810 is the crucial support zone while 20200 – 20250 shall act as an immediate hurdle zone.

Bank Nifty has also witnessed a sell off past opening higher and closed negative for the day. We believe that there could be a consolidation in the range of 45800 – 45000 from short term perspective. Daily and hourly momentum indicator are providing divergent signals which could lead to a consolidation in the near term.

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

Markets showed first signs of cooling off after seven straight sessions of gains as key indices ended mixed in a session marked with volatility in early trades but turned range-bound thereafter. Sluggishness in other Asian and European gauges also prompted investors to take a cautious route and resort to selective profit-taking.

Technically, the medium term texture of the market is still positive, but in the near future we could see a range bound activity. For traders, 19900-19850 could be the key support levels while 20100-20150 could be the immediate resistance areas for the bulls.

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