Sensex, Nifty end in the red; FTSE rejig, border tension infuse volatility

Indian market benchmarks the Sensex and the Nifty closed in the red on September 18 amid mixed global cues and lack of fresh domestic triggers.

An FTSE rejig of the index coupled with India-China tensions led to a pretty volatile trading session. After trading in the green for most of the day, equity benchmarks succumbed to a fresh spell of selling in the last hour, closing with a negative bias.

The Sensex closed 134 points, or 0.34 percent, lower at 38,845.82 while Nifty closed 11 points, or 0.10 percent, down at 11,504.95.

BSE Midcap closed 0.26 percent higher while the BSE Smallcap index closed 0.32 percent lower.

Global cues were mostly mixed after the US Fed reserve failed to come out with an immediate stimulus measure and also due to a resurgence in coronavirus infections in some countries, experts said.

Vinod Nair, Head of Research at Geojit Financial Services, said the market has been trading with uncertainty and lack of direction to either side was visible in this week’s trades.

The worry was visible as investors would have cleared their positions heading into the weekend. He believes in the absence of fresh triggers for the market, the current uncertainty is expected to continue.

“Any news with regards to the border tensions with China, or global events can impact the markets on the downside. As such, investors need to be cautious and watch for news-specific movements,” Nair said.

On a weekly basis, the Sensex and the Nifty closed almost flat.

Top Nifty gainers included Dr. Reddy’s Laboratories, Cipla and Adani Ports.

Top Nifty losers included HDFC Bank, Shree Cements and Bajaj Finserv.

Stocks & Sectors

Among the sectors, pharma stole the show. The BSE healthcare index closed 3.50 percent higher followed by the telecom index that rose 2.69 percent and the realty index logged a gain of 1.96 percent.

On the flip side, BSE finance and Bankex fell 1.16 percent and 1.13 percent, respectively.

A volume spike of more than 300 percent was seen in Escorts, Cipla, Glenmark Pharma and Divi’s Labs.

Long build-up was seen in stocks like Dr. Reddy’s Labs, Cipla and Lupin.

Short buildup was seen in stocks like Petronet, IDFC First Bank and Bandhan Bank.

As many as 164 stocks, including HCL Technologies, Advanced Enzyme Technologies, Apollo Hospitals, Biocon, Cadila, Divi’s Labs, Dr. Reddy’s Labs, Escorts and Wipro, hit their 52-week high on BSE.

Read more: In pics | Gainers & Losers: 10 stocks that moved the most on September 18

Technical View

The Nifty formed a bearish candle that resembles a bearish Belt-hold kind of a pattern on the daily charts, while for the week, it gained 0.4 percent and formed a Doji pattern on the weekly scale.

The market continues to respect the 11,500 level, which is heartening for the bulls. The key level to be respected is 11,300-11,350 and if we can manage that, we should be able to achieve 11,800 by the expiry next week, said Manish Hathiramani, Technical Analyst at Deen Dayal Investments.