On another day of volatile trade, the Indian market saw profit-booking but managed to narrow losses, with the Sensex closing 410.28 points, or 0.68 percent, lower at 59,667.60, and the Nifty sliding 106.50 points, or 0.60 percent, to end at 17,748.60.
A highly volatile trade was witnessed, with significant swings on either side led by the IT and oil & gas indices, said S Ranganathan, Head of Research at LKP securities.
“The PSE index put up a stellar show today, rising over 3 percent with power stocks making a smart up move. Despite the smart pullback from the lows of the day, declines were higher than advances in the broader market," said S Ranganathan, Head of Research at LKP securities.
Bharti Airtel, Tech Mahindra, Bajaj Finance, Divis Labs and Bajaj Finserv were among the major losers on the Nifty. Power Grid Corp, Coal India, NTPC, IOC and BPCL were among the gainers.
The broader market, too, ended lower. The BSE midcap and smallcap indices were each down more than 0.5 percent.
On the sectoral front, the Nifty IT index fell more than 2 percent, while PSU bank and Energy indices added 1-2 percent.
Stocks & sectors
On the BSE, the realty index shed 3 percent and the IT index fell 2 percent, however, power, oil & gas and metal gained a percent each.
Among individual stocks, a volume spike of more than 1,200 percent was seen in PNB, IRCTC and Indiabulls Housing Finance.
Long buildup was seen in Siemens, ONGC and Godrej Consumer Products, while short buildup was seen in Mphasis, Shree Cements and Federal Bank.
More than 200 stocks, including Torrent Power, ONGC, ICICI Bank and Oil India, hit a 52-week high on the BSE.
Technical View
The Nifty formed a bearish candle on the daily scale with a longer lower shadow, indicating that declines were being bought.
"Now, it has to continue to hold above 17,777 zones, for an up move towards 17,900 and 18,000 zones, whereas support is placed at 17,650 and 17,580 zones," said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 29
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty witnessed a correction but managed to stay above 17,600. It suggests that 17,550-17,600 will be an important support zone for the market to stay positive in the short term.
If the market holds 17,550-17,600, it can move towards 18,000. Technical indicators suggest a volatile movement in the market in the 17,600-18,000 range.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the Nifty has taken support from the lower band of a rising wedge pattern, which suggests an upside rally in the coming sessions.
Moreover, the index has taken support from 100-HMA and given a closing above it, which further adds strength to the upside.
On four hourly charts, the Nifty formed a hammer candlestick with the support of the 21-Four Hourly Moving Average as well as Stochastic momentum indicator. It has also bounced from the oversold zone with a positive crossover, which points to upside movement in the counter.
The Nifty has support at 17,550, while upside resistance comes at 17,950.
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