DECLINE CONTINUED IN NIFTY; CLOSED LOWER FOR THE FOURTH TRADING DAY

NIFTY:

The NIFTY opened at 19744.85 without much of a gap. The index initially moved up but soon found resistance and turned down. A sharp decline came that led prices towards 17950. The index found support there and started moving higher. Soon prices broke above early morning highs but could not sustain there longer and saw another leg of decline. The NIFTY recorded its intraday high at 19798.65 in the afternoon, its intraday low at 19657.50 towards the end, and finally closed at 19674.25 with a loss of 68.10 points or 0.34% down. All the sectoral indices moved in line with the NIFTY 50 index and closed in red except AUTO which ended with marginal gains. PHARMA led the bears today and ended with a loss of 1.55%. Resistance is visible around 20200 while support is visible around 19700. The index is now moving around the support levels.

BANK NIFTY:

The BANK NIFTY opened at 44707.35 with a gap up of 97 points. The index initially moved higher but soon drifted downwards. Prices have erased all the gains and then again turned around and moved higher. That volatile movement continued for the whole day. In this process, prices have recorded its intraday high at 44996.75, its intraday low at 44548.90, and finally closed at 44639.95 with a gain of just 19 points. PSU BANK has significantly outperformed, saw a sharp upside move, and closed with a gain of 3.51%. PVT BANK has underperformed, saw a mild down move, and ended with a loss of 0.09%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while HDFC BANK contributed the least. The short-term trend is sideways. A sharp decline seems to now finding support around 44600 while resistance is visible around 46200. On the weekly timeframe chart, the index has been consolidating for the past four months within a wide range of 43600-46300. The current week was a big bearish candle so it is possible that the next week may be narrow and choppy.

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• Indices extend losses to fourth session after volatile trade, Nifty ends below 19,700. The Sensex was down 221.09 points or 0.33 percent at 66,009.15, and the Nifty was down 68.00 points or 0.34 percent at 19,674.30. About 1747 shares advanced, 1779 shares declined, and 143 shares unchanged.

• Shares of PNB Gilts hit 20 percent upper circuit on September 22 to hit Rs 81 per share on BSE in intra-day trade on the back of heavy volumes, as India’s inclusion in JPMorgan’s bond index is seen driving billion of dollars of inflows. The stock also breached its previous 52-week high of Rs 71.6 apiece touched on July 21, 2023.

• The pharmaceutical sector is exhibiting strong bearish positions on September 22. Among individual stocks in the sector, short positions can be observed in Glenmark, Cipla, Alkem and Dr Reddy’s for the day.

• Banking stocks in India remain the preferred pick for JP Morgan on expectation of strong earnings growth in the sector, said Sanjay Mookim, JP Morgan’s Head of Research. “In terms of combination of growth and value, banks look good in India,” said Mookimin in a panel interview with CNBC TV18.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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