Sensex gyrates 370 pts, ends 127 pts down; Nifty holds 17,350; RIL dips 2%

However, healthy buying in the broader market kept overall market breadth in the favour of the buyers

5:07 PM

MARKET CLOSING COMMENT :: Deepak Jasani, head of retail research, HDFC Securities

Nifty closed mildly down in a narrow band of closings over the past four days on the first day of the trading week on Sept 13. Nifty opened flat and sold out in the first hour of trade. After making an intra day low at 1005 Hrs, it started to rise gradually. At close, Nifty was down 14 points or 0.08% at 17355.

 

On a day when the volumes on the NSE continued to be lower than recent averages, Metals, Utilities and Realty indices gained the most while Energy, Consumer Durables and Bank indices fell the most. Small and midcap indices ended in the positive

Nifty continues to close in a narrow band of 17353-17378 over the past 5 sessions. This reflects lack of enthusiasm on the part of sellers to sell aggressively while buyers keep nibbling at individual stocks. Advance decline ratio continues to be positive. 17254-17437 is the band for the near term for the Nifty.

4:53 PM

MARKET STRATEGY :: Shrikant Chouhan, Executive VP, Equity Technical Research, Kotak Securities

Markets witnessed profit-taking in select frontline stocks as weakness in other Asian markets weighed on Indian gauges. Benchmark Nifty moved in a range of 100 points and took support near 17270 after falling sharply in early trades. Over the last four days, the index has been hovering between 17250 to 17435 levels. At the same time, the Nifty is consistently taking support at 17250. As long as the index is trading above 17250, the bullish formation is likely to continue up to 17450 -17500 levels. However, trading below the same could possibly trigger correction up to 17200-17150 levels.

4:39 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The short term trend of Nifty continued with range bound action, but the overall market breadth has placed at the positive side. The Nifty is expected to form a higher bottom reversal around 17250 levels (near the support of 10 day EMA) in the next 1-2 sessions before witnessing another round of upside bounce. Immediate resistance to be watched at 17450 levels.

4:28 PM

TECH VIEW :: Fresh buying only can only happen above 17,500 zone

The Nifty index showed some sell-off in the beginning but a smart recovery has been seen from good support zone.

It managed to close at 17,351 & formed a Doji candle pattern on daily chart.

Good support zone for the index is coming near 17,300-17,250 zone. If it manages to hold above-said levels, we may see next move towards 17,430-17,500 zone. Fresh buying only can happen above 17,500 zone

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities.

4:16 PM

TRADING STRATEGY :: Markets are still expected to consolidat

Nifty has been constantly consolidating in a range, 17,250 is immediate support to Nifty followed by 17,210-17,175. Hurdle on the upside is placed at 17,370 & cross over can take nifty to 17,435-17,475 levels. 

 

Bank Nifty which is underperforming the market is also traveling in a range, strong support is placed at 36,150 followed by 36,000-35,900 levels & similarly on upside hurdle for bank nifty is placed at 36,700 and crossover will take to next resistance level which is placed at 37,000 levels for Bank Nifty.

 

Markets are still expected to consolidate. We are still bullish on Mid & Small caps as this week many companies have come out of the Trade-to-Trade category and we expect them to be out of the ASM list with the next 3 weeks.

 

Sectors to Focus – Specialty Chemicals, Textiles, Metals & Banks

Views by: Rahul Sharma, Co-Founder, Equity99

4:04 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Indices remained rangebound in trade today after a stellar run in Index stocks during the past few weeks making India one of the best-performing markets globally last month. Action however was seen in select Small & Midcap names as consolidation in several sectors have benefited select companies who have used the Pandemic to gain share. Market Participants were however picking their spaces as valuations are pricey with several stocks trading at 3.5x price to book

3:57 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services.

Indian indices extended its early losses in a volatile session, ahead of the release of domestic inflation data. Despite hopeful signs, the global markets failed to inspire Asian markets. The European Central Bank in its policy meeting last week raised its growth and inflation projections for the year owing to quicker economic recovery thereby moderately reducing the pace of its pandemic-era bond-buying programme. Domestic retail inflation is expected to remain high in line with the July inflation rate of 5.59%.

3:51 PM

Volatility Alert

India VIX ends 0.5 per cent higher at 14.03 level

3:50 PM

BSE Snapshot :: 255 scrips hit 52-week high in a subdued market

3:48 PM

Sector of the day :: Nifty Bank dips 0.5%

3:46 PM

Sector of the day :: IT stocks shine; Mindtree surges 5%, Mphasis 2%

3:45 PM

Sector of the day :: Gains in metal stocks help Nifty50 end flat

3:44 PM

Broader market :: BSE SmallCap index outperforms benchmarks

3:42 PM

Broader market :: BSE MidCap index recoups losses, ends mildly above flat line

3:41 PM

Sector Check :: Nifty Metal climbs over 1%, pvt banks under pressure

3:39 PM

Sensex Heatmap

Top gainers: Kotak Bank, Tata Steel, TCS

Top losers: RIL, ICICI Bank, HUL

3:35 PM

CLOSING BELL

The S&P BSE Sensex gyrated 370 points in the intra-day trade before settling 127 points, or 0.22 per cent, lower at 58,178 levels.

 

It's NSE counterpart, meanwhile, closed at 17,355 levels, down 14 points or 0.08 per cent.

3:24 PM

NEWS ALERT :: Suryoday SFB clarifies on Clix Capital merger report

>> The management of the Bank continues to explore and evaluate various opporlunities or associations in the interest of the Bank, as and when considered appropriate, which is always a subject matter of fuither feasibility studies and the need for requisite consents in accordance to applicable law and other stakeholders

>> At present, there is no such decision taken by the Board or any of its Committees, which calls for dissemination of information or disclosure of event in terms of regulation 30 of the Listing Regulations. Accordingly, we would be unable to comment upon the said News Article.

3:12 PM

Liquidity no longer a major concern, FM Sitharaman assures India Inc

The move is likely to give impetus to economic recovery during the festive season and also ensure availability of credit for sectors like export. The credit outreach programme is likely to be similar to the credit outreach programme launched in 2019, through which banks held loan melas across 400 districts and reportedly disbursed around Rs 4.9 trillion. READ MORE

3:00 PM

Vedanta Resources reduces net debt by $300 mn in first half of FY'22

Vedanta Resources Ltd (VRL) on Monday announced that the company has reduced its net debt by USD 300 million in the first half of this fiscal and expects to further reduce its debt by USD 500 million in the second half of FY'22.

 

With the entire debt repayment at Volcan, the pledge on all the equity shares of VRL has been released, the company said in a statement READ MORE

2:52 PM

Analysts see 19% upside in this FMCG stock on growth outlook, product mix

After clocking a dizzying rally, Hindustan Unilever shares may take a breather before hitting fresh record highs, believe analysts. They are penciling in up to 19 per cent upside from current market levels, deriving comfort from the company’s long-term growth strategies, along with increase in prices to protect margins. That said, some scale-back of 180-230bps in the medium-term margin-synergies target for the Nutrition business could be an overhang, they say. READ MORE

2:24 PM

Goldiam Intl soars 17% as board approves buyback at Rs 1,200 per share

Shares of Goldiam International soared 17 per cent to a new high of Rs 1,074 on the BSE in intra-day trades on Monday after the company's board approved buyback of equity shares at price of Rs 1,200 via tender offer. The company is an integrated manufacturer and supplier of impeccable diamond jewellery to leading retailers and wholesalers in the USA and Europe. READ MORE

2:21 PM

Kesoram Industries approves rights issue up 8 cr equity shares worth Rs 400 cr

>> Rights entitlement ratio is 133 shares for every 274 shares held

2:11 PM

ALERT :: Pfizer's Covid vaccine for 5-11 age group likely to be available in US by October end

1:51 PM

Telecom Department may approve proposals in relation to telecom equipment PLI this week

Source: TV channels

1:30 PM

Stock of this industrial machinery company has zoomed 51% in three days

Shares of Dynamatic Technologies hit a 52-week high of Rs 3,447.85 after they rallied 20 per cent on the BSE in the intra-day trade on Monday, in an otherwise subdued market. The stock of the industrial machinery company was quoting higher for the third straight trading day, zooming 51 per cent during the period. In comparison, the S&P BSE Sensex was down 0.16 per cent at 58,213 points at 12:46 pm. READ MORE

1:16 PM

Adani Transmission market cap crosses Rs 2 trillion mark

1:04 PM

MTAR Technologies bags orders worth Rs 220 cr from Bloom Energy for manufactured and assembled products

>> This order is for export of Yuma Hot Boxes and associated components for Bloom Energy to be delivered over the four quarters of the calendar year 2022
 

12:47 PM

Ami Organics' GMP suggests decent debut. What should retail investors do?

Ami Organics Limited IPO to list on stock exchanges on September 14, 2021 and the basis of allotment for retail shareholders is 17:161.allotment, it means that only nearby 10% of retail investors will get the allotment. 

 

Ami Organics IPO was priced at Price to Earnings of 35.6 times and EV/EBITDA of 25.7 times at the upper price band of the IPO based on FY2021 numbers, which is on the higher side, compared to the listed peer group. 

 

If we look at the current Grey Market Premium is at Rs 145 i.e 23% at the upper price band of the IPO. We suggest short-term investors to book profit on listing day if they receive the allotment.

 

Views by: Yash Gupta, Equity Research Analyst, Angel Broking

12:34 PM

NEW LISTING :: Here's what to expect from Vijaya Diagnostics' market debut?

Vijay Diagnostic Centre Limited to list on stock exchanges on 14th September 2021, the overall retail portion got subscribed 1.09 times so it was expected that almost all the investors got the allotment. Vijaya Diagnostic IPO is priced at Price to Earnings of 64.3 times and EV/EBITDA of 30 times at the upper price band of the IPO based on FY2021 numbers, which is in line with the listed peer group. 

 

We are not expecting any big listing gain from Vijaya Diagnostic Centre Limited IPO as we believe that all the short term positive has been priced in the IPO price i.e Rs 531. If we look at the current Grey Market Premium, as per market news GMP is at Rs 5 i.e 1% at the upper price band of the IPO. 

 

We suggest retail investors who got the allotment to sell the stock at a price range of Rs 540-Rs560 and the investors who haven't received the allotment should not buy the stock at listing.

 

Views by: Yash Gupta, Equity Research Analyst, Angel Broking