Stock Market Highlights 2 Sept 2022: Market ends flat amid volatility; Nifty below 17,550, Sensex settles near 58,800
Stock Market Live Updates: The Indian market ended flat amid volatility on Friday.
The Indian market ended flat amid volatility on Friday. Benchmarks Nifty 50 and Sensex erased all early gains as they closed with minor cuts as large cap stocks came under tremendous selling pressure in the last trading session of the week.
The broader Nifty50 closed near 17,500, while the Sensex ended with marginal gains of 36 points to settle near 58,800.
The market struggled for a firm direction today as global markets were largely under selling pressure ahead of the release of US job data, which could provide insight into upcoming Fed actions, said Vinod Nair, Head of Research at Geojit Financial Services.
"Oil prices rose ahead of the OPEC+ meeting on the expectation of a reduction in output, despite the fact that weak global growth prospects remain a concern. A surging dollar index and rising US bond yields could be reflected in the elevated volatility of the domestic market in the near term," he added.
Meanwhile, Nifty Midcap and Small cap ended in the red too as the former closed with 0.36% cuts, while the latter ended lower by 0.17%.
Sectorally, Oil & Gas, PSU Bank saw maximum selling pressure, While Media, FMCG and Financial Services attracted buying interest.
On weekly basis, the benchmarks ended flat in the week ended September 2022. BSE Telecom and Nifty Alpha 50 were the top two gainers on the BSE and NSE respectively in the holiday-shortened week. IT was the worst performing index this week on both NSE and BSE with over three per cent drop.
ITC, Adani Ports, L&T, HDFC Ltd, Kotak Bank, HDFC Bank and State Bank of India were among top gainers in a weak market.
BPCL, Shree Cements, Hero MotoCorp, Reliance Industries, Maruti Suzuki and Nestle India led the drag.
"Market is back to a phase of high volatility. The recent resilience of the Indian market can be attributed largely to FIIs turning buyers. But this FII bullishness appears to be over in the near-term as evidenced by the FII sell figure of Rs 2290 cr yesterday. Also FIIs are increasing their short positions in derivatives," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said this is a rational response to the surging dollar index which touched a 20-year high of 109.6% yesterday. This, and the US 10-year bond yield racing to 3.26% are unfavorable for emerging market equities and therefore investors have to be cautious in the near-term, said Vijaykumar
"US jobs data to be released today and the CPI numbers expected on September 13th will give an indication about the strength of the US economy and its influence on the US Fed's rate decision later this month. The near-term outlook for the market has turned bearish amidst volatility. Investors can utilise deep cuts in the market to buy domestic cyclicals like autos which are showing strong resilience supported by healthy and improving fundamentals," the expert added.
Latest Updates
Nifty posts negative close on the weekly chart
After a volatile action for the week gone by, the Nifty posted a negative close on the weekly chart. The price action for the last 2-3 weeks shows that the index is in a short term consolidation phase. It is witnessing sideways action below a crucial falling trendline. The daily Bollinger Bands have started contraction, which suggests that the consolidation is likely to continue going ahead. In terms of the price patterns, the Nifty has formed a Double Inside bar on the daily chart. Developments on the lower time frame indicate that the Nifty is gearing up for a down move within this short term consolidation. With the next move down, the index can test 17200 on the downside. On the higher side, 17700-17780 is acting as a key resistance zone-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Gold outlook: Yellow metal to trade in this range | Gold (CMP $1705 spot):
Gold is currently trading with a gain of 0.35% as the US Dollar Index edges slightly lower ahead of the crucial US job report data due today. Yesterday, gold fell below the psychological support level at $1700 as the US Dollar Index surged to record high on disappointing manufacturing PMI data out of Europe and relatively better data, viz ISM manufacturing and weekly job data, out of the US. The US data led to 10-year US yields breaking higher to fresh cyclical high of 3.26% as the data boosted the odds of a 75-bps hike by the US Federal at its upcoming September FOMC meet. Fed Bank of Atlanta President Bostic said that inflation is still too high, and it is not time to act too aggressively or too timidly. Federal Reserve speakers continue to remain hawkish, thus showing their resolve to tame rampant inflation.
Gold is on the track of third straight weekly loss as long-term US and Euro-zone real rates turn positive. Weakness in the Yuan is also contributing to downward pressure on the yellow metal.Exchange traded funds continue to pare their gold holdings. Gold is expected to trade between $1675 and $1730 as traders look to sell into rallies. The support at $1675 is quite crucial for the counter. The metal may consolidate in near-term; however, a robust US non-farm payroll report will heavily on the metal.
Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas
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Expect Crude oil prices to fall further under $80 in coming weeks
WTI crude October futures at $89.25 is up 3% during mid-European trading session on Friday ahead of the monthly OPEC+ meet scheduled for September 5. Oil prices are down 4% for the week even after considering today rebound. Oil prices lost 9% in August to record 3rd straight monthly decline and its longest losing run in three years. The broader risk off sentiment due to sharp contraction in manufacturing activities in Eurozone and China is hurting the demand for crude oil. Earlier in this week OPEC slashed its demand outlook by 0.4 mbpd for 2022, while it is largely expected that OPEC+ may go for production cuts, if Iran’s nuclear deal gets a green light as that would likely add approximately 1mbpd of additional oil from the embargo hit nation. US economic data looks resilient even after the Fed rate hikes. but that alone would not be able to sustain demand on its shoulder for oil to remain higher. Overall, we may expect prices to fall further under $80 in coming weeks. For the day a strong labour market report from US may push crude to test resistance of $92 but we remain bearish on crude oil outlook in near term.
Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas
Stock market update: Nifty above 17,600, Sensex up over 200 points
Trading with volatility amid weak global cues, the benchmarks turned green as Nifty50 reclaimed 17,600, while the Sensex climbed over 200 points. The recovery was led by Financial and FMCG stocks
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Shaktikanta Das on inflation
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RBI Governor Shaktikanta Das on Rupee devaluation
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GMR Infra, MMTC and APL Apollo Tubes shares: What should investors do with these counters?
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Nifty below 17,500, Sensex down 150 points
Swinging between gains and losses, the market has been exhibiting huge volatility on Friday. The Nifty50 slipped below 17,500 while Sensex tanked over 150 points soon after opening.
Market slips in red
The Indian market erased opening gains to slip in the red on Friday. Nifty near 17,500, Sensex drops around 50 points
Cochin Shipyard hits 52-week high
Shares of Cochin Shipyard Ltd jumped nearly two per cent in early trade to trade on 52-week high value of Rs 389.05 per share on the BSE.
Nifty, Sensex top gainers and losers
Among stocks, NTPC, Eicher Motors, Apollo Hospitals, SBI Life, ITC and Kotak Bank were top gainers on the benchmarks.
Shree Cements, IndusInd Bank, Hero MotoCorp, HDFC Ltd and Maruti were among a few losers on Friday.
Nifty near 17,600, Sensex up around 200 points in pre-open
The domestic benchmarks gained marginally in the pre-opening session on Friday. The broader Nifty50 traded near 17,600, while the Sensex gained over 200 points amid weak global cues.
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Nifty support and resistance
"Nifty remained sideways during the day before ending 1% lower. After starting to gap down on the back of a weak global cue, the Nifty failed to recover fully and traded within a range for the day. The momentum indicator is in a bearish crossover indicating a bearishness. On the lower end, 17400 may continue to act as crucial support, below which the index may become weak again. On the higher end, resistance is visible at 17700."- Rupak De, Senior Technical Analyst at LKP Securities.
Nifty: 17200-18000 broad range for short term consolidation
The Nifty witnessed volatile action on September 01. The index had seen a swift up move in the previous session; however there was no follow through buying today. Throughout the day, the index oscillated around the key hourly moving averages & the 20 DMA. Ultimately, the Nifty has formed an Inside bar pattern on the daily chart. The overall structure shows that the index is in short term consolidation since the last couple of weeks & that is likely to continue going ahead. 17200-18000 is the broad range for the short term consolidation.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
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Stocks in focus: GMR Infra, MRPL and Suven Pharma and more
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FIIs 1st September data
FIIs sold equities worth Rs 2290 crore in cash market, while Domestic Institutional Investors bought equities worth Rs 951 cr.
Asian markets trading on 2nd Sept
Majority of the important Asian indices traded in the red on Friday morning. Japanese Nikkei 225 dropped 0.10%, Hang Seng Index at the Hong Kong Exchange decline almost 0.50% and Chinese Shanghai Composite marginally gained 0.10%
SGX Nifty trends on 2 Septemeber
The trends on SGX Nifty hinted at a flat to negative start for the Indian market. The index was trading higher by 30 points in early trade on the Singaporean exchange on Friday
US Stock Market closing
After ending lower in the red for the four consecutive sessions, the US markets closed on mixed note on Thursday. Wall Street indices Dow Jones gained 146 points, Nasdaq ended lower by 31 points and S&P 500 gained 12 points in Thursday's closing
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