Stock Market Highlights 9 Sept 2022: Nifty ends above 17,800, Sensex near 59, 800; IT stocks outperform
Stock Market Live Updates: After opening on a strong note, the Indian market erased early gains to end with minor gains on the last day of the week. Benchmark Nifty50 closed above 17,800, while the Sensex gained around 100 points to settle near 59,800- mark. The Benchmark Indices gained around one and half per cent each for the week ended September 9, 2022.
Nifty IT led the sectoral indices as it gained over two per cent, while Financial Services and Realty dragged the most
In the broader market, Nifty Midcap rose higher by 0.35%, however, the small cap index ended flat with a marginal gain of 0.06%
"Domestic bourses kicked off the trading session on a strong footing, backed by positive sentiments across global markets. However, it succumbed to profit booking after surpassing the psychological 60,000 mark," said Vinod Nair, Head of Research at Geojit Financial Services.
Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75bps rate hikes by ECB. Banking and consumer-facing stocks continued to be top picks in the domestic market, he added.
Tech Mahindra, IndusInd Bank, Infosys were among top gainers on the benchmarks, UltraTech Cement, M&M and SBI Life were top losers.
"In the last public appearance before the September 20-21 Fed meeting, the Fed chief Jerome Powell on Thursday reiterated his resolve to fight inflation "until the job is done." So a 75 bp rate hike on September 21st will not surprise the market. The market now believes that the sharp rate hikes will not cause a deep recession. That's why the global cues have turned slightly positive," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
In India, the market momentum is so strong that the benchmark indices are moving towards previous record highs, he said.
Vijayakumar said even though valuations are getting expensive, investors should remain invested in this strong market. "Strong FII buying and short covering can surprise the market on the upside. Domestic economy-facing stocks continue to be the favourites. Bank Nifty is moving towards record highs," he added.
Stock Market Live Updates: After opening on a strong note, the Indian market erased early gains to end with minor gains on the last day of the week. Benchmark Nifty50 closed above 17,800, while the Sensex gained around 100 points to settle near 59,800- mark. The Benchmark Indices gained around one and half per cent each for the week ended September 9, 2022.
Nifty IT led the sectoral indices as it gained over two per cent, while Financial Services and Realty dragged the most
In the broader market, Nifty Midcap rose higher by 0.35%, however, the small cap index ended flat with a marginal gain of 0.06%
"Domestic bourses kicked off the trading session on a strong footing, backed by positive sentiments across global markets. However, it succumbed to profit booking after surpassing the psychological 60,000 mark," said Vinod Nair, Head of Research at Geojit Financial Services.
Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75bps rate hikes by ECB. Banking and consumer-facing stocks continued to be top picks in the domestic market, he added.
Tech Mahindra, IndusInd Bank, Infosys were among top gainers on the benchmarks, UltraTech Cement, M&M and SBI Life were top losers.
"In the last public appearance before the September 20-21 Fed meeting, the Fed chief Jerome Powell on Thursday reiterated his resolve to fight inflation "until the job is done." So a 75 bp rate hike on September 21st will not surprise the market. The market now believes that the sharp rate hikes will not cause a deep recession. That's why the global cues have turned slightly positive," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
In India, the market momentum is so strong that the benchmark indices are moving towards previous record highs, he said.
Vijayakumar said even though valuations are getting expensive, investors should remain invested in this strong market. "Strong FII buying and short covering can surprise the market on the upside. Domestic economy-facing stocks continue to be the favourites. Bank Nifty is moving towards record highs," he added.
Latest Updates
Midcap, Smallcap stocks outperform
Outperforming the benchmarks, Nifty Midcap and smallcap indices rose 0.8% and 1.2% respectively in the afternoon trade
Nifty resistance on higher end is seen at 17900/18100
Nifty has given a falling trendline breakout on the daily chart. Besides, the index value has moved above its crucial resistance of 17700. The daily RSI has entered into a bullish crossover. The trend for the short term looks positive. On the lower end, support is visible at 17700. Resistance on the higher end is seen at 17900/18100.- Rupak De, Senior Technical Analyst at LKP Securities
Gold support at $1700
Gold (CMP $1728 spot):
Spot gold is currently trading with a gain of over 1% on as the US Dollar Index has tumbled 1.20%.The decline in the US Dollar Index has come on the US treasury secretary Ms Yellen’s comments this morning that the US inflation reading for August is likely to show a decline on weaker gas prices. In addition, she has stated that the President is reviewing tariffs on Chinese goods and some of the tariffs could be rolled back.
Perception of market about the Fed’s monetary policy is at odds with that of the Fed. It also appears that market is a bit too short, which is leading to short covering. The yellow metal may rise to $1750 if $1730 level is taken out. However, this bounce back doesn’t look very convincing. Support is at $1700.
Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas
Nifty stuck in a consolidation range
The Nifty is stuck in a consolidation range for the last few weeks. On the higher side, the psychological mark of 18000 is acting as a cap. On September 09, the index moved up to test this barrier where the selling pressure started building up again as the index inched closer to 18000. Unless that level is surpassed, the Nifty is expected to stay in the consolidation mode for the next week. The internal structure shows that the index is preparing for a down move. It is expected to test 17500 in the coming sessions. The broader market indices are also poised to consolidate their recent gains-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Market in green ahead of closing bell
Even after erasing some early gains, the Indian market was trading higher by over 0.20% ahead of the closing. Tech Mahindra and Indus Ind Bank led the benchmarks, while UltraTech Cements and M&M were top losers
Rupee trading strategy
USDINR (CMP Rs 79.57 spot):
Indian rupee appreciated by 0.14% today on positive domestic equities and a weak US Dollar. Dollar declined by more than 1% on a sharp bounce amid an unprecedented 75 bps rate hike by ECB to 1.25%. FII inflows also supported Rupee. FII inflows on Thursday surged to Rs. 2,913 crore, the highest single day inflows since August 30. Easing bond yields also weighed on Dollar. 10-year US bond yields are trading around -1.43% at 3.277%. We expect Rupee to with a negative tone amid worries over global economic slowdown and recovery in crude oil prices. Global inflationary pressures may also put pressure on riskier assets. However, weakness in Dollar and positive cues from global markets may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 79 to Rs 80.30 in next couple of sessions.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
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Sensex at 60,000: It won't be surprising if index tests new high
It is usually seen that when we don't enter a bear market, the reversal to previous highs is quick and almost one sided. And this seems to be happening again. I won't be surprised if we test a new all time high very soon. However, while new highs are definitely worth cheering, it is also a time for stock taking and exiting out of stocks that have run up a great deal or where fundamentals have taken a turn for the worse. To that extent, caution needs to be exercised.
Rahul Shah, Co-Head of Research, Equitymaster.
Nifty outlook:
Our stance yesterday was to ride the upsides until 17770-850before looking for signs of bears regrouping. Wayward VIX had refrained us from committing to a directional move even though the 18600 trajectory has been maturing for a while now. This has been the reason for riding the recent moves pivot to pivot rather than embarking on an expansive move. From this perspective, we will go in today, with a downside marker pushed higher to17750, aiming for 17975. While we are biased towards extending upside, we are equally mindful of a sharp long liquidation, should Nifty slip beyond 17700 again.- Anand James - Chief Market Strategist at Geojit Financial Services.
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