Stock market: The Indian Sensex-Nifty Intrade failed to maintain the lead and closed with a slight lead in the Voteli trading session on 9 September. The Nifty remained above 24,750. Auto, metal, oil and gas and PSU banks contributed the most in this. After a good start, benchmark index rose and the Nifty reached the highest level of the day of 24,885.50. However, due to profit booking in the last hour, most of the growth went to air and the Nifty closed near the lowest level of the day.
At the end of the trading session, the Sensex rose 76.54 points or 0.09 percent to 80,787.30 and the Nifty rose 32.15 points or 0.13 percent to close at 24,773.15. The BSE midcap and smallcap indices saw an increase of 0.5–0.5 per cent.
Tata Motors, JSW Steel, Eicher Motors, M&M and Bajaj Auto were included in today’s top gainers on the Nifty. While Trent, SBI Life Insurance, Asian Paints, TCS, Tech Mahindra lived in the top loses of Nifty.
Recent cuts in GST rates have seen an improvement in investors’ sentiments. Vijaykumar, VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services “After 22 September, when the new GST rates are implemented, there will be a huge jump in the demand for automobiles and consumer durables,” said.
The weak Laborcades in the US have further increased the expectations of the interest rate cut by the Federal Reserve later this month. Prashant Taase of Mehta Equities Limited The Fed says that the interest rates are expected to be cut by 25 basis points in the September 17 meeting.
Anand James of Geojit Financial Services Says that on Friday, closing above 20-Day SMA, is a sign of the ability to take sufficient risk to move up in the market. Going above 24,870, the road to 25,400 can open. At the same time, if failed to stay above 24700, there is a possibility of falling below 24500 and slipping to 24,075.
Further investors will keep a close watch on the inflation figures of both India and the US. This would indicate the monetary policy of the US Federal Reserve. In his previous meeting, Fed Chairman Jerome Powell indicated a cut of 25 basis points. Meanwhile, the weak US employment figures, weaker than expected, have further strengthened the expectations of cuts in the Fede meeting next week.
From a technical perspective, there is no decisive trend in the index. Every session is seeing a phase of fast and recession. Dhupesh Dhemeja of Samco Securities says that the Nifty is now stuck between the big consolidation range of 24,500-25,000. The market will see a new boom only when he overtakes this range.
He further said that strong moves above 24,900 can trigger short covering, which can open the way for a long rally. While the decline below 24,500 can begin a new round of recession. Till then the range-bound action is likely to continue in the market. The lower range of this range can be 24,400 and the upper limit can be 24,900.
Auto Stocks: 3% rose in Nifty Auto Index, India becomes the top gainer of futures
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