Indian equity indices ended on a flat note on Monday. The Nifty 50 rose 31.50 points or 0.13% to settle the day’s trading at 24,572.65. The Sensex settled 12.16 points or 0.02% lower at 80,424.68. Reliance Industries, TCS, Tata Steel, Hindalco, and NTPC were the top five major contributors on Monday.
Sectoral Index
The Bank Nifty rose 148.55 points or 0.29% to end the session at 50,368.35. Outperforming the overall markets, the Nifty Midcap 100 settled 105 points or 0.18% higher at 57,760.90. In the broader markets, smallcap and midcap stocks closed in the green.
“The Indian market failed to catch up with the initial gains as there is a degree of profit booking witnessed in auto stocks due to a slowdown in demand. However, oil stocks gained momentum with the reduction in windfall tax on crude oil. The recent healthy US economic data diminished the likelihood of a US recession, while a slide in the dollar index supported the hypothesis of a rate cut in the September FOMC meeting,” said Vinod Nair, Head of Research at Geojit Financial Services.
Markets rally! Nifty ends near 24,550, Sensex gains 1300; IT stocks shine Markets see steady gains as US recession concerns ease! Nifty near 24,700, Sensex holds 80,800 Bloodbath on D-Street amid global sell-off! Nifty tests 24,000, Sensex falls 2,222 points The Hindenburg cloud hovers over market; Nifty ends below 24,350, and Adani group stocks see 2% cut
“The recovery in global markets is supporting the index’s positive tone, but the underperformance of banking majors is limiting momentum. Amid all, we recommend maintaining a “buy on dips” strategy, with a focus on stock selection. Our preference remains for the IT and FMCG sector, and we suggest being selective in others,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
Bank Nifty
“The Bank Nifty has been weaker as compared to Nifty and has been lagging in the retracement process. The daily as well as the hourly momentum indicator has a positive crossover which indicates that this correction should be bought into. Thus, a positive upmove is due in the case of Bank Nifty as well and we are expecting levels of 51000 – 51500 from a short-term perspective. on the downside, 50240 – 50200 is the crucial support zone,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.