Closing Bell: Sensex, Nifty end flat amid volatility; auto stocks gain, IT drags

Taking Stock: Sensex Hits New High Led By Auto, Realty Stocks; IT, Pharma Drag

The Nifty Bank ended nearly a percent higher after touching a fresh record high of 38,355.20 in intraday trade

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

Both the key benchmark indices started on a firm note but could not capitalize on the sold start as investors traded with caution and followed other Asian peers. Auto stocks were the star performers in a sluggish session and the texture of the chart suggests Maruti, Tata Motors, and Bharat Forge have formed a strong technical breakout formation and are likely to outperform in the near future. 

On intraday charts, the Nifty has formed a double top formation which indicates temporary weakness. However, the short-term trend is still positive. 

For day traders, the 17,900 levels could be the immediate hurdle, and below the same, the correction wave could continue up to 17,750-17,710 levels. On the flip side, if the Nifty moves above 17,900, the uptrend continuation formation is likely to continue up to 17,950-18,000 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities:

Index opened higher but was unable to hold highs and showed profit booking. The index managed to close a day at 17,855 & formed a bearish candle for a second consecutive day. Strong base is formed near 17,800-17,740 zone and holding above said levels we may see northward movement to be continue. 

Also any dip around said levels can use as to add fresh longs with keeping stop out level below 17,700 zone. The strong hurdle is coming near 17,930 followed by 18k mark where one can look for to lock their long gains.

Vinod Nair, Head of Research at Geojit Financial Services: 

Due to profit booking in IT, Pharma and FMCG, domestic markets failed to uphold its winning streak to close flat in a volatile session. Realty stocks continued its rally on positive developments in the sector while the sentiments in the auto sector were lifted on expectation of better sales numbers for September. The market is also awaiting the release of August’s core sector output data and September’s manufacturing PMI data this week.

Market close: Benchmark indices ended on flat note on September 27 with Sensex holding above 60,000 level.

At close, the Sensex was up 29.41 points or 0.05% at 60077.88, and the Nifty was up 1.90 points or 0.01% at 17855.10. About 1592 shares have advanced, 1682 shares declined, and 176 shares are unchanged.

Maruti Suzuki, Tata Motors, M&M, ONGC and Hero MotoCorp were among major gainers on the Nifty, while losers included HCL Technologies, Divis Labs, Wipro, Tech Mahindra and Bajaj Finserv.

On the sectoral front, auto and realty indices gained 2.5-3 percent, while IT index shed nearly 3 percent. BSE midcap and smallcap indices ended flat.

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

The market witnessed some volatile movements after the market was able to breach the Nifty 50 Index level of 17850. It shows sustaining above 17850, the market to gain momentum, leading to an upside projection till 18000 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

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Yash Gupta, Equity Research Analyst, Angel One:

Tomorrow will be going the record date for Bharti Airtel Rs 21,000 crore right issue. The shareholder who was holding Bharti Airtel will get right to apply for right issue in the ratio of 1:14 shares i.e for every 14 shares the shareholder will get the 1 right entitlement of right share at a price of Rs 535, which is discount to CMP of 26%.

Along with this Bharti Airtel's future and option contract lot also adjust for this right issue, the adjusted market lot would be 1886 shares for both Future contracts as well as Option contracts.

Market at 3 PM

Benchmark indices were trading flat in the final hour of the trading with Sensex holding above 60000 mark.

The Sensex was down 7.20 points or 0.01% at 60,041.27, and the Nifty was down 6.90 points or 0.04% at 17,846.30. About 1432 shares have advanced, 1640 shares declined, and 163 shares are unchanged.

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