Stock Market Highlights 6 Sept 2022: Market extends weakness! Nifty closes near 17650, Sensex ends around 50 points lower
Stock Market Live updates: The domestic equity market ended flat amid volatility on Tuesday.
The domestic equity market ended flat amid volatility on Tuesday. Benchmark indices Nifty50 and Sensex marginally declined as Nifty50 ended near 17,650 and the Sensex erased early gains to end near 59,200. Even as the broader market outperformed the benchmarks, FMCG, Private Bank and IT were top laggards on Tuesday. Nifty Midcap and Small cap ended higher by around 0.5% and 0.2% respectively. Metal, PSU Bank and Healthcare were among top sectoral indices that gained in a highly volatile market.
Domestic indices wiped out its early gains to close flat, tracking mixed global cues, said Vinod Nair, Head of Research at Geojit Financial Services.
"While the energy crisis and ECB interest rate decision later in the week pressurized European markets. Chinese policymakers’ renewed efforts to strengthen its economy boded well for the Chinese bourses. In an effort to stabilize declining oil prices, OPEC+ opted to cut back on the output given the faltering global growth outlook," he added.
Among stocks, Apollo Hospitals, Bharti Airtel, NTPC and Tata Steel gained in a falling market, while Tata Consumer, Bajaj Finserv and M&M led the drag on Tuesday
"The resilience of the domestic market even in the context of strong global headwinds is a bit surprising. Clearly, India is outperforming the rest of the world," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
While the S&P 500 is down 18% this year, Nifty is up by 1.8%. Retail investor enthusiasm - directly and through SIPs in mutual funds - has supported the market successfully shielding it from the onslaught of sustained FPI selling from October 2021 through June 2022, he said. In this context, the total demat accounts in India crossing the 10cr mark in August is indeed, a proud landmark, said Vijayakumar.
"However, retail investors directly investing in the market should not commit the mistake of chasing low-grade cheap stocks. High quality large-caps will outperform when the market turns weak. Presently, the market is driven by momentum and bulls are in control. Bank Nifty is on the verge of a break-out and has fundamental support," the expert added.
Meanwhile, Shares of Dreamfolks Services, an airport Service aggregator, made a strong debut on the National Stock Exchange (NSE) and BSE on Tuesday. Dreamfolks Services stock opened at Rs 505 Per share on the BSE, a premium of Rs 179 or 54.91% against the issue price.
The company has fixed the upper end of the price band at Rs 326 per share.
Latest Updates
17700-17780 proved a key barrier for Nifty for yet another session
In the case of Nifty, the zone of 17700-17780 proved to be a key barrier for yet another session. Despite multiple attempts, the index is unable to surpass that hurdle. Various technical parameters are present near 17700-17780, which is maintaining pressure on the benchmark index. The short term momentum indicators are also adding to the weight of evidence in favor of the bears. Structurally, the index is preparing for a downward move, which can drag the index down to 17200 in the short term. On the way down, 17540-17500 will act as an intermediate support zone.-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Nifty trend remains sideways
"Nifty failed to capitalize on the early gain as profit-taking happened around 17750. On the lower end, 17600 acted as support for the index. The trend remains sideways as the Nifty failed to provide any directional breakout. Resistance is seen at 17770; whereas, support is visible at 17580/17468." Rupak De, Senior Technical Analyst at LKP Securities.
Bank Nifty: Bias remains on the upside
The Bank Nifty index continued to face resistance around the level of 40,000 where the highest open interest is built up on the call side. The index immediate downside support stands at 39,500-39,400 and if breached will see further downside towards 38,800-38,500 levels. The bias remains on the upside and once should have a buy-on-dip approach." Kunal Shah, Senior Technical Analyst at LKP Securities.
Metal, PSU Bank top sectoral indices.
Metal, PSU Bank and Healthcare were among top sectoral indices that gained in a highly volatile market. Midcap index gained almost 0.6% and Smallcap rose by around 0.3%.
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Indian markets trading at premium, but not expensive
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IT, PSU Bank lead recovery
IT and PSU Bank stocks were leading recovery as Nifty reclaimed 17,700, while the Sensex climbed up over 150 points. Nifty PSU Bank gained 1.1% while Metal index rose 0.80%
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Market in red: Nifty near 17,600
The Indian market slipped after opening on a strong note on Tuesday. Nifty50 was seen trading around 17,600, while the Sensex dropped over 200 points to trade near 59,000.
Dreamfolks Services IPO listing: Shares list at 55% premium on BSE
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Nifty, Sensex top gainers and losers
In the broader market, Nifty Midcap and Smallcap were seen trading higher by 0.4% each during the opening session. Sectorally, except for Nifty IT, almost all indices sat in the green. Metal and Healthcare led the sectoral indices in early trade on Tuesday.
Apollo Hospitals, PowerGrid and NTPC were among top gainers on the benchmarks, while Nestle India, Kotak Bank and Wipro were top laggards on the indices.
Bank Nifty reclaims 40,000-mark
Bank Nifty reclaimed 40,000-mark for the first time since November 2021. Bank of Baroda and Federal Bank were top gainers in the 12-share index between November 2021 and September 2022
Derivative
Nifty weekly contract has highest open interest at 19000 for Calls and 17600 for Puts while monthly contracts have highest open interest at 17700 for Calls and 17000 for Puts. Highest new OI addition was seen at 18000 for Calls and 17000 for Puts in weekly and at 18000 for Calls and 16000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 14.38%, increased future index shorts by -7.98% and in index options by 9.69% in Call longs, 8.47% in Call short, -6.33% in Put longs and 25.19% in Put shorts.-
Anand James - Chief Market Strategist at Geojit Financial Services.Nifty outlook: Support, resistance and key levels
The approach to 17690 may see bears regrouping, but if the dips thereof sustains above 17640, a few more spurts of upsides could be seen. It may take a while to breach the 18000 barrier again, but the near term prospects of the same will stay alive as long as 17470/400 region holds.
Anand James - Chief Market Strategist at Geojit Financial Services
Nifty, Sensex start in pre-open
In line with the SGX Nifty trends, the Indian market opened flat amid neutral global and cues on Tuesday. Benchmarks Nifty 50 gained 0.1%, while the Sensex started 0.03% higher in pre-opening session.
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SGX Nifty trade with minor gains, near 17,000
Indicating a flat to positive opening, SGX Nifty on the Singaporean exchange was trading higher by 20 points to trade above 17,000 in early trade on Tuesday
Asian markets in green
The Asian markets were off to a good start on Tuesday with all major indices trading in the green. Japanese Nikkei 225 was trading higher by 0.20%, Hang Seng Index at the Hong Kong Exchange was marginally up by 0.10 %, while the Chinese Shanghai Composite gained almost half per cent in early trade on Tuesday.
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