Indian benchmark indices broke their three-day winning streak to end flat amid volatility on September 7 after hitting record highs levels intraday. The Sensex and the Nifty 50 touched their record highs of 58,553.07 and 17,436.50 during the session but squandered the gains to close lower.
At close, the Sensex was down 17.43 points, or 0.03 percent, at 58,279.48 and the Nifty was down 15.70 points, or 0.09 percent, at 17,362.10.
“The domestic market traded with high volatility as investors locked in gains from the recent rally and global factors. However, the broad market maintained its buoyancy in segments, which are bound to benefit from unlocking,” said Vinod Nair, Head of Research at Geojit Financial Services.
European shares traded lower ahead of the European Central Bank’s policy meeting on September 9, where talks regarding the tapering of asset-purchase programme are likely to take place in the backdrop of rising Eurozone inflation, Nair added.
BPCL, Sun Pharma, Tech Mahindra, Wipro and Axis Bank were the top Nifty losers. Bharti Airtel, HDFC, Grasim Industries, ITC and IndusInd Bank were among the top gainers.
The BSE midcap and smallcap indices ended in the red.
Among sectors, except FMCG, all other sectoral indices ended lower, with IT and PSU bank indices down a percent each.
Stocks & sectors
On the BSE, IT, oil & gas and realty indices fell 1-2 percent, however, some buying was seen in the FMCG names.
Among individual stocks, a volume spike of more than 400 percent was seen in LIC Housing Finance, Vodafone Idea and Can Fin Homes.
Long buildup was seen in Can Fin Homes, IRCTC and Polycab India, while short buildup was seen in Indiamart Intermesh, Manappuram Finance and TATA Consumer Products.
As many as 200 stocks, including Voltas, Mindtree, IRCTC, Tata Elxsi, hit a 52-week high on the BSE.
The Nifty formed a small bearish candle on the daily scale as it closed with marginal losses and negated higher highs-higher lows formation of the last seven sessions.
“It has to continue to hold above 17,300 zones to extend the move towards 17,500 and 17,777 zones, while on the downside, support is seen at 17,200 and 17,050 levels,” said Chandan Taparia, Vice President, Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 8
Sachin Gupta, AVP-Research at Choice Broking
The Nifty recovered its early losses to touch a new high of 17,436.50 on September 7. The index settled at 17,357.45, while the Bank Nifty ended at 36,468.80 with 0.3 percent losses.
Technically, the index has been trading in higher high and higher low formation, which suggests strength in the counter.
On the hourly chart, the index has been finding resistance from the upper band of Bollinger, crossing the same can led to further upside movement.
All the key indicators like RSI, MACD & Stochastic are supporting the positive trend in the index. At present, the psychological level of 17,500 could be a resistance, while on the downside, 17,200 may act as a support for the index.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty witnessed some volatile movements and an attempt to hold the 17,300 level. If the market sustains above 17,200-17,250, it is expected to gain momentum, leading to an upside projection till 17,400-17,450 level.
Momentum indicators like RSI and MACD will stay positive and market breadth will improve, further strengthening the short-term bullish outlook.
Mohit Nigam, Head-PMS, Hem Securities
On the technical front, the market is witnessing a continuous positive trend and has sustained well above 17,300-350. We believe this up move will extend to 17,500 in the short term. On the downside, 17,100 is the immediate support followed by 16,900.
Ajit Mishra, VP-Research, Religare Broking
The Nifty traded volatile in a range and settled marginally lower, taking a pause after the recent surge.
Among sectors, IT and banking were laggards, whereas telecom, FMCG, and consumer durables ended with gains. The broader markets also witnessed profit-taking to end lower.
In the absence of any major event, global cues would continue to dictate the trend. Indications are in the favour of some consolidation or profit-taking, thus we recommend being extra caution in stock selection.
On the benchmark front, the Nifty has immediate support around the 17,200-17,250 zone.
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