Market falls for fifth day in a row but Nifty manages to hold 11,100

Indian market fell for the 5th consecutive day in a row on September 23 but managed to recoup a lot of morning losses which was a positive sign for the bulls. Sensex was down by about 1 percent closing with marginal losses.

Let’s look at the final tally on D-Street – Sensex fell 65 points to 37,668 while the Nifty50 was down 21 points to 11,131.

“Indian benchmark indices traded in a tight range before finally ending the day with a negative bias. The uncertainty and lack of direction was clear in the market trend, which was actually supported by gains in RIL and HDFC Bank. Banking index ended the day slightly positive,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

“Global cues were mostly positive. But the re-emergence of virus infections around the world has put doubts on the global economic recovery, and the positivity in the global markets was led by technology shares. Thursday being an expiry day and with uncertainty ruling the markets, traders are advised to be cautious,” he said.

Sectorally, the action was seen in consumer durables, realty, energy, and banks while selling pressure was seen in telecom, power, utilities, healthcare and public sector.

On the broader markets front, the S&P BSE Mid-cap index was down 0.3 percent while the S&P BSE Smallcap index was down 0.07 percent.

Top Nifty gainers include Coal India, HUL, and Axis Bank.

Top Nifty losers include Tata Steel, Bharti Infratel, and Bharti Airtel.

Stocks & Sectors:

Sectorally, the action was seen in the S&P BSE Consumer Durable Index which was up 0.7 percent, followed by the S&P BSE Realty index which grew 0.5 percent, and the S&P BSE Energy index rose 0.49 percent.

Selling pressure was seen in the S&P BSE Telecom index which fell 7.3 percent, followed by the S&P BSE Power index that was down 2.1 percent, and the S&P BSE Healthcare index fell 1.2 percent.

Volume spike of more than 100% was seen in stocks like Idea, Vedanta and SAIL.

Long Buildup was seen in stocks like Ambuja Cement, SBI Life, and UltraTech Cements.

Short Buildup was seen in stocks like Pidilite Industries, Marico, and Ashok Leyland.

More than 100 stocks on the BSE hit a fresh 52-week high that include names like Mphasis, MindTree and Persistent Systems.

Technical View:

Nifty formed a bearish candle on the daily charts

It closes below 50-Days EMA| On the expiry day, if bulls manages to defend the low of 11024 levels then sideways move with positive bias can be expected for next couple of trading sessions.

Unless Nifty50 registers a sustainable close above the near term critical resistance zone of 11294 – 309 levels strong rally in the Nifty shall not be expected, says Mazhar Mohammad of Chartviewindia.in said.

In case if Nifty closes below 11k levels then traders should be ready for a bigger cut with initial target placed around 10800 levels, he said.

Therefore for time being traders are advised to remain neutral on the index especially on short side trade unless Nifty50 closes below 11k levels in the next session, added Mohammad.

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