BackMarket Closing Bell: Nifty 50, Sensex end flat; mid, smallcaps outperform
Nifty 50 closed the day absolutely flat at 19,674.55 while the Sensex settled at 66,023.69, up 15 points.
PremiumEquity benchmarks Nifty 50 and Sensex ended flat on Monday, tracking weak global cues as sentiment remains fragile on concerns of higher interest rates and faltering economic growth.
Investors are confused amid the mixed signals from major central banks in the world. Last week, the US Fed maintained its pause on interest rates but signalled it was ready for at least one more hike by the end of the year. On the other hand, the European Central Bank (ECB) and the Bank of England (BoE) hinted rates may not go further higher.
Concerns are growing that if the Fed keeps rates at higher levels for a longer time, it will deal a blow to the possibility of a soft landing of the US economy. Weakness in the US economy will have an impact on major economies across the globe.
Nifty 50 today opened at 19,678.20 against the previous close of 19,674.25 and touched its intraday high and low of 19,734.15 and 19,601.55 respectively. Nifty 50 finally closed flat at 19,674.55.
On the other hand, Sensex today opened at 66,082.99 against the previous close of 66,009.15 and hit its intraday high and low of 66,225.63 and 65,764.03 respectively. Sensex closed nearly 15 points, or 0.02 per cent, up at 66,023.69.
Shares of Bajaj Finance, ICICI Bank and Kotak Mahindra Bank ended as the top contributors to the gains in Sensex while those of Infosys, Reliance Industries and TCS ended as the top drags on the Sensex.
Mid and smallcaps outperformed the benchmarks as the BSE Midcap index closed 0.46 per cent up at 32,094.28 while the BSE Smallcap index settled 0.12 per cent higher.
Even though the market benchmarks ended flat, some 195 stocks, including Coal India, Maruti Suzuki, Tata Consumer Products and Trent, hit their fresh 52-week highs in intraday trade on BSE.
Top Nifty 50 gainers today
Shares of Bajaj Finance (up 4.49 per cent), Tata Consumer Products (up 3.17 per cent) and Bajaj Finserv (up 1.97 per cent) ended as the top gainers in the Nifty 50 index.
Top Nifty 50 losers today
Shares of Hindalco (down 2.06 per cent), SBI Life Insurance Company (down 1.77 per cent) and Hero MotoCorp (down 1.63 per cent) ended as the top losers in the Nifty 50 index.
Sectoral indices today
Among the sectoral indices, the Nifty IT (down 0.78 per cent) and the Nifty Media (down 0.73 per cent) lost significantly.
Nifty Pharma (down 0.34 per cent), Oil & Gas (down 0.25 per cent), Metal (down 0.11 per cent) and Auto (down 0.08 per cent) also ended in the red.
Among the gainers, Nifty Realty jumped 1.52 per cent. Nifty Bank closed 0.35 per cent higher, Nifty Private Bank index rose 0.45 per cent and Nifty PSU Bank rose 0.16 per cent.
Experts' views on markets
"The day presented a mixed picture in the market, with sectors such as realty, banking, and consumer durables performing well while IT and pharma struggled. Investors were actively repositioning, shifting away from stocks tied to the global economy and focusing on the domestic economy," said Vinod Nair, Head of Research at Geojit Financial Services.
"Concerns loomed over a potential global economic slowdown due to the prolonged period of high interest rates. While the domestic market is witnessing good registration and consumption demand ahead of the festival season, India's entry into JP Morgan's Emerging Markets Government Bond Index is benefiting the financial sector in anticipation of a reduction in funding costs," Nair said.
Technical views on Nifty 50
Shrikant Chouhan, Head of Research (Retail) at Kotak Securities pointed out that on daily charts the Nifty has formed a Doji candlestick formation, which is indicating incisiveness between the bulls and bears. However, a quick pullback rally is not ruled out from the current levels.
"For the bulls, the 50-day SMA or 19,600 would act as a key support zone. Above this, the market could move up to 19,800-19,850. On the flip side, a fresh sell-off is possible only after the dismissal of 19,600, below which the index could slip to 19,525-19,500," said Chouhan.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said that the Nifty formed a Doji pattern on the daily charts. The Doji pattern indicates indecision among market participants regarding the direction.
"Nifty is trading right in the support zone 19,600 – 19,650 and considering the sharp decline in the past few trading sessions a pullback appears highly probable. On the hourly momentum indicator, we can observe a positive divergence and also a positive crossover which also suggests that a pullback is likely. The pullback can be till 19,820 – 19,880 where key hourly moving averages and the gap area formed on 21st September are placed. In terms of levels, 19,600 – 19,620 is the crucial support zone while 19,820 – 19,880 should act as an immediate hurdle zone," said Gedia.
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