Taking Stock: Nifty, Sensex hold strong in choppy trade as broader Mid and Smallcap segment fall

Taking Stock: Nifty, Sensex hold strong in choppy trade as broader Mid and Smallcap segment fall

The headline benchmark indices Sensex and Nifty resumed the rally in Thursday's trade and ended higher after hitting record highs on positive global cues following 50 basis point cut by the United States Federal Reserve. Sensex climbed 236.57 points to settle at lifetime high of 83,184.80 while the broader Nifty went up 38.25 points to 25,415.80.

Domestic heavyweight sectors such as banking and FMCG witnessed buying, spurred by foreign investments and expectations of monetary easing by the RBI in October.

Meanwhile, the broader Indian markets fell on September 19, with Nifty Midcap and Smallcap indices giving up morning gains and slipping deep into red. Vinod Nair, Head of Research, Geojit Financial Services noted that the substantial rate cut sparked concerns over global slowdown, resulting in profit booking in mid & small cap trading at premium valuation.

NTPC, Titan, Nestle India, Kotak Bank were among the gainers in the Nifty50 pack.

NTPC, Kotak Bank, Titan, Nestle India, Hindustan Unilever, HDFC Bank were among the top gainers in the Sensex pack while Adani Ports, L&T, TCS were among the laggards. Among the sectors, Nifty Media, Oil and Gas, Metal, PSU Bank were the worst hit falling up to 2.45 percent.

Amit Golia, Group CEO, MarketsMojo said "Looking forward, markets may shift their focus to how these rate cuts affect corporate earnings and broader economic health, especially if global demand continues to weaken."

241 stocks touched their 52-high on the BSE, including, AAA Technologies Ltd, Aarnav Fashions Ltd, Jubilant FoodWorks Ltd among others. Check full list here.

Rupak De, Senior Technical Analyst, LKP Securities noted "The Nifty formed a shooting star pattern on the hourly chart, suggesting an early sign of a bearish reversal. Additionally, the Nifty failed to close above the rising trendline despite a gap-up opening and strong global cues. Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550–25,600 range. On the lower end, support is placed at 25,350. Below which the Nifty might correct down towards 25100-25000."