The benchmark indices ended higher for the second consecutive session on September 4 with Nifty comfortably finishing above 19,500 amid buying across the sectors.
At close, the Sensex was up 240.98 points or 0.37 percent at 65,628.14, and the Nifty was up 93.50 points or 0.48 percent at 19,528.80.
After a positive start, the market erased all the gains in the initial hours and turned negative. However, mid-session buying helped indices to inch higher and closed near the day's high.
Coal India, Wipro, HCL Technologies, UltraTech Cement and Tata Steel are among the top gainers on the Nifty, while losers were Axis Bank, M&M, Nestle India, ITC and Asian Paints.
All the sectoral indices ended in the green with power, metal, auto, realty, oil & gas and PSU Bank up between 1 and 2.8 percent.
The broader indices, BSE midcap and smallcap, outperformed the benchmark and rose nearly a percent each to touch fresh 52-week highs.
A long build-up was seen in BHEL, SAIL India and NMDC, while a short build-up was seen in Escorts Kubota, Abbott India and Astral.
Among individual stocks, a volume spike of more than 100 percent was seen in BHEL, Balrampur Chini Mills and Dalmia Bharat.
400 stocks touched their 52-week high on the BSE, including PNB, MRPL, Wipo, Bharat Forge, Atul Auto, Thermax, Tata Communications, HCL Technologies, SAIL, Rites, IRFC, among others. Click to View More
Outlook for September 5
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
The Nifty opened gap up and consolidated for most part of the day. It closed with gains of ~93 points. On the daily charts we can observe that the Nifty is stretching on the upside. The intraday dip was bought into which indicates buying interest at supports and also suggests bullishness. The daily momentum indicator has a positive crossover which is a buy signal.
We believe that the Nifty is in the process of retracing the fall it has witnessed from 19992 – 19223 and hence the pullback is likely to last over the next few trading sessions. On the upside we expect the Nifty to target levels of 19650. In terms of levels, crucial support zone is placed at 19420 – 19360 and immediate hurdle is placed at 19650 – 19700.
Bank Nifty has also witnessed follow through buying interest from the previous trading session. It has managed to close above the 20- and 40-day moving averages which is a sign of strength. We expect the Index to continue its pullback and towards the daily upper Bollinger band placed around 45000. The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting that the positive momentum is likely to continue.
Aditya Gaggar Director of Progressive Shares
Although the markets commenced the week on a strong note; in the opening trade itself, the Index erased all its gains. However, the strong performance of the Metal stocks helped the Index recover. In the mid-session, IT and PSU Banks took the lead and pushed the Index further higher to settle the day at 19,528.80 with gains of 93.50 points.
All the sectors participated in the rally except for FMCG. A streak of outperformance has been extended by the broader markets. On the daily chart, Nifty50 has made a DOJI candlestick pattern which generally indicates a reversal of the trend. A level of 20&50DMA will act as a support which is 19,430 while immediate resistance stands at 19,580.
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