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... Read More

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.

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.

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.

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.

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.

Shares Prevest Denpro, a Jammu-based dental materials manufacturer, saw a massive debut on the BSE SME platform as it opened at Rs 180.55, a whopping 115 percent premium over the issue price of Rs 84 on September 27. Read More

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.

Goldman Sachs raised its forecast for year-end Brent crude oil prices to $90 per barrel from $80, as a faster fuel demand recovery from Delta variant and Hurricane Ida’s hit to production led to tight global supplies.

Brent futures hit a near three-year high last week as global output disruptions have forced energy companies to pull large amounts of crude out of inventories.

World shares rose on Monday, led by sharp gains in energy shares as crude oil prices soared to three-year highs of almost $80 a barrel while European stocks firmed after Germany's election results ruled out chances of a purely left-wing coalition.

Ratings agency Icra on Monday revised up its 2021-22 real GDP growth estimate for India to 9 percent from the earlier 8.5 percent. A ramp-up in COVID-19 vaccination, healthy advance estimates of kharif (summer) crop and faster government spending were the factors which led to the revision, the agency said in a statement. Icra on Monday said it expects the second half of the fiscal year to have brighter prospects.

: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 1.3% up near $74.95 per barrel for the day. MCX Crude oil September futures were trading 1.17% up near Rs 5,531 per barrel by noon.

Crude oil prices are expected to trade up for the day with resistance at $76 and support at $73 per barrel. MCX Crude oil October has support at Rs 5,460 and resistance at Rs 5,580.