Benchmark indices touched record levels for the third straight session on September 1 but broke the seven-day gaining momentum to end near the day’s low.
Nifty and Sensex touched their fresh record levels of 17,225.75 and 57,918.71 respectively, in the opening trade on the back of better GDP data announced the day before.
At close, the Sensex was down 214.18 points or 0.37% at 57338.21, and the Nifty was down 55.90 points or 0.33% at 17076.30.
“Despite a strong opening due to favourable GDP data, domestic indices failed to hold onto its early gains due to profit booking strategy from the recent rally. India’s GDP rose due to the low base effect and was powered by private consumption expenditure & investment. The auto sector showed a flattish trend as sales for August saw a decline following supply constraints,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Paints, Tata Motors, SBI Life Insurance, Axis Bank and Nestle were the top Nifty gainers. M&M, Cipla, Tata Steel, Hindalco Industries and Bajaj Finserv were among the top losers.
Broader market outperformed the benchmarks, as BSE midcap and smallcap indices gained 0.2-0.9 percent each.
Except IT, metal and pharma, all other sectoral indices ended in the green with Nifty PSU Bank up nearly 1 percent.
Stocks & sectors
On the BSE, IT and metal indices fell 1 percent each, while the realty index added 5.5 percent and power and capital goods indices up over 1 percent each.
Among individual stocks, a volume spike of more than 300 percent was seen in Indian Hotel, United Breweries and Exide Industries.
Long buildup was seen in Indian Energy Exchange, Can Fin Homes and United Breweries, while short buildup was seen in Syngene International, AU Small Finance Bank and M&M.
More than 200 stocks, including Sobha, SBI Life Insurance Company, ICICI Bank, Divis Laboratories hit a 52-week high on the BSE.
Nifty formed a bearish candle but continues forming higher highs from the last four sessions.
“It has to continue to hold above 16,950-17,000 zones to extend the move towards 17,250 zones, while on the downside support is seen at 16,900 and 16,750 levels,” said Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services.
Outlook for September 2
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lacklustre movement. If the market is able to sustain the level of 17000, it can move higher to 17250-17300. Momentum indicators like RSI, MACD support the positive outlook.
Ajit Mishra, VP – Research, Religare Broking:
Markets may see some consolidation ahead and it would be healthy. We reiterate our view to focus on the banking index for further directional move in Nifty. On the downside, the Nifty may find support around the 16,900 zone. Considering the trend, traders should continue with the “buy on dips” approach.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty continues to trade with a positive bias for the medium term and is expected to test 18,000 and above. Trend support for the index is seen at 16,760 levels.
In the short term since the movement has been aggressive, some corrections cannot be ruled out. We believe buying on dips is advisable in the broader markets. We expect positive bias in realty and auto stocks, while BFSI space remains in momentum and should be held onto.
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