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Taking Stock: Nifty holds 17,600 on expiry day; realty stocks gain, metals drag

The Nifty 50 index gained nearly 6 percent in the September series

September 30, 2021 / 05:22 PM IST

The market ended lower on September 30 after a volatile session on expiry day. At close, the Sensex ended 286.91 points or 0.48% lower at 59,126.36, while Nifty was down 93.10 points or 0.53% at 17,618.20.

The Nifty50 index gained nearly 6 percent in the September series.

"Indian market opened on a flat note and slipped in the later half tracking weak global cues and fall in heavyweights. Worries over the US debt ceiling crisis and uptick in bond yield triggered further consolidation. The domestic market also got vigilant ahead of the release of August’s core sector output data," said Vinod Nair, Head of Research at Geojit Financial Services.

Power Grid Corp, Axis Bank, Asian Paints, Eicher Motors and Hero MotoCorp were among the major losers on the Nifty. Bajaj Finserv, Bajaj Finance, Sun Pharma, NTPC and Tata Motors were among the gainers.

The broader market outperformed the main indices with the BSE midcap index gaining 0.33 percent and smallcap index adding 0.56 percent.

Close

All sectoral indices except Nifty Pharma and PSU Bank ended in the red.

Stocks & sectors

On the BSE, the Realty index rose 1.5 percent and the Power index rose 0.5 percent. However, selling was seen in the auto, bank, IT and Metal names.

IndexPricesChangeChange%
Sensex60,821.62-101.88 -0.17%
Nifty 5018,114.90-63.20 -0.35%
Nifty Bank40,323.65293.45 +0.73%
Nifty 50 18,114.90 -63.20 (-0.35%)
Fri, Oct 22, 2021
Biggest GainerPricesChangeChange%
HDFC2,903.9559.85 +2.10%
Biggest LoserPricesChangeChange%
Hindalco470.45-23.30 -4.72%
Best SectorPricesChangeChange%
Nifty Bank40323.65293.45 +0.73%
Worst SectorPricesChangeChange%
Nifty Metal5690.10-178.30 -3.04%

Among individual names, a volume spike of more than 1,500 percent was seen in Vodafone Idea, Sun TV and Zee Entertainment.

Long buildup was seen in Vodafone Idea, Trent and HUL, while short buildup was seen in Motherson Sumi, Cipla and Page Industries.

More than 200 stocks, including Torrent Pharma, JSW Energy, NHPC, Hindalco Industries, hit a 52-week high on the BSE.

Technical View

The Nifty formed a bearish candle on a daily scale and closed with a losses of around 90 points.

"Now, it has to hold multiple support of 17,580 zones, for an up move towards 17,777 and 17,850 zones, whereas support is shifting lower to 17,450 and 17,350 zones," said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.

Outlook for October 1

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

Investors booked profit on the expiry day due to lack of fresh triggers and tepid global cues. Benchmark Nifty is hovering within the range of 17,600-17,780 and on intraday charts it has formed a lower top formation which is largely negative. However, the medium term structure is still positive.

The intraday trading setup suggests 17,700 could act as a strong resistance level, and below the same the correction could continue up to 17,500-17,450 levels. On the flip side, beyond 17,700 the immediate hurdle would be the 17,750 level. On the contrary, any revival could lift the index up to 17,800.

Rohit Singre, Senior Technical Analyst at LKP Securities:

The index closed the day at 17618 with a loss of half a percent and formed a bearish candle on the daily chart. One more expiry ended on a positive note with gains of 6 percent. Going forward, immediate support is near the 17,540-17,440 zone and if it manages to hold above the mentioned support area then one can expect a bounce and prices could move again towards immediate hurdle zone of 17700-17800.

We may see the index consolidating in the range of 17,300-18,000 mark & either side breakout will decide the final direction.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

The market witnessed some volatile movements and attempted to hold the level around the Nifty 50 level of 17,600. The market showed that it is going to be crucial in the short term to sustain above the 17,550-17,600 support zone.

If the market is able to sustain the level of 17,550-17,600, it can witness higher levels of 18,000. The technical indicator suggests a volatile movement in the market in a small range between 17,600-18,000.

Palak Kothari, Research Associate at Choice Broking:

Technically, the Nifty has formed a bearish candle on a daily time frame though the index is taking support from 21-DMA. Closing below the same can show a correction in the next trading sessions.

Furthermore, the index has been trading below 21 & 50 HMA, which suggests some correction can be seen in the upcoming session.

Momentum indicator MACD is also showing negative crossover, which adds weakness in the counter. At present, the Nifty has immediate support at 17,500 while resistance comes at 17,900 levels.

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 30, 2021 05:07 pm

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