Taking stock: Sensex, Nifty extend gains to second straight day led by auto stocks
Market breadth was negative, with 1,616 stocks advancing, 2,176 declining
Benchmark indices Sensex and Nifty extended gains to second consecutive day and ended on a record high note on September 17 led by gains in telecom, auto, and construction stocks. The gains come ahead of the US Federal Reserve monetary policy outcome, wherein market participants expect about 25 basis point interest rate cut.
At close, the Sensex rose 80 points or 0.1 percent to 83,068, and the Nifty added 34 points, settling at 25,418.50. Market breadth was negative, with 1,616 stocks advancing, 2,176 declining, and 99 remaining unchanged.
In the broader end of the markets – BSE Midcap and BSE Smallcap indices declined up to 0.1 percent, while India VIX, which measures market volatility ticked up by a percent to settle at 12.6.
Outlook for September 18
Vinod Nair, Head of Research, Geojit Financial Services
“The Indian market exhibited a subtle positive momentum, driven by the anticipation of a rate cut cycle by the US FED. Although a 25-bps cut is largely factored in, the market remains attuned to the FED’s comments on the health of the economy and the future trajectory of rate cuts. Further, robust institutional flows continued to bolster the domestic market. While the overall trend remained positive, there was notable buying interest in large-cap stocks, particularly in sectors such as IT, FMCG, and private banks.”
Ajit Mishra, SVP, Research, Religare Broking
Markets remained subdued for the third consecutive day, ending slightly in the green. After a flat opening, the Nifty moved within a narrow range, closing at 25,418.55. Sector-wise, realty and auto saw gains, while metal and pharma ended in the red. Simultaneously, profit-booking in the midcap and smallcap segments led to weaker market breadth.
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The recent market action suggests that participants are in a wait-and-watch mode ahead of the US Fed meeting, although rotational buying in large-cap stocks is maintaining a positive tone. We recommend continuing with a “buy on dips” strategy, targeting an upside of 25,550 in the Nifty. Additionally, selective sectors like banking, financials, realty, and IT are presenting stock-specific buying opportunities so plan the trades accordingly.
Shrikant Chouhan, Head of Equity Research, Kotak Securities
Today, the benchmark indices continued range bound activity, the Nifty ends 34 points higher while the Sensex was up by 105 points. Among Sectors, selective Auto stocks witnessed buying interest whereas Media index was the top looser, shed over 1 percent. Technically, after a muted open entire day the market trade above 25350/82900. A positive consolidation on intraday charts indicating further uptrend from the current levels. For the trend following traders now, 25350/82900 and 25300/82700 would act as a key supports zone. As long as the market is trading above the same, the bullish texture is likely to continue. On the higher side, it could move up till 25550-25650/83400-83800. On the flip side, below 25300/82700 the sentiment could change. Below the same, we could expect one quick correction till 25225-25200/82400-82200.
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