Market Overview: In the week concluding on September 13, the stock market experienced a robust rally, with major indices reaching unprecedented heights. This surge was fueled by favorable monsoon conditions and encouraging economic indicators. Positive sentiment was also bolstered by anticipations of an imminent interest rate cut by the Federal Reserve during its upcoming policy meeting. The BSE Sensex closed at 82,890.94, up by 1,707.01 points or 2.10 percent, while the Nifty 50 index finished at 25,356.50, rising by 504.35 points or 2.02 percent.
This week, we observed significant gains across various market segments. The BSE Smallcap index recorded a 2 percent increase, while the Largecap index nearly matched that with almost a 2 percent rise, and the BSE Midcap index increased by 1.5 percent. Notably, on September 12, both the Nifty 50 and BSE Sensex set new all-time highs, reaching levels of 25,433.35 and 83,116.19, respectively.
Examining sector performance, all sectoral indices ended the week positively, with the exception of the oil and gas sector, which dipped by 2.6 percent. The Nifty FMCG, Nifty IT, and Nifty Media indices saw impressive gains, each climbing by approximately 3 percent.
| Index | Closing Value | Change (%) |
|---|---|---|
| BSE Sensex | 82,890.94 | +2.10% |
| Nifty 50 | 25,356.50 | +2.02% |
| BSE Smallcap | Not Specified | +2% |
| BSE Midcap | Not Specified | +1.5% |
On the foreign investment front, Foreign Institutional Investors (FIIs) were net buyers of equities worth ₹15,199.6 crore during the week, while Domestic Institutional Investors (DIIs) purchased equities totaling ₹2,444.19 crore. For the month thus far, FIIs have accumulated equities worth ₹16,600.88 crore, with DIIs investing ₹7,990.18 crore.
Within the BSE Smallcap index, several stocks made notable gains, including Hardwin India, Panacea Biotec, and Sadhana Nitrochem, which saw increases of 20-30 percent. Conversely, stocks such as Abans Holdings, Granules India, and VST Industries experienced declines ranging from 7 to 21 percent.
Market Outlook:
Analysis by Amol Athavale from Kotak Securities highlights a generally positive market structure for the short term. However, given the current overbought conditions, a range-bound market may be anticipated. Support levels are identified at 25,225-25,000 for Nifty and 82,500-82,000 for Sensex, while resistance is seen at 25,500-25,700 and 83,500-84,000, respectively. If the market dips below 25,000 or 82,000, the existing uptrend could be jeopardized.
For Bank Nifty, as long as it trades above the 50-day Simple Moving Average (SMA) of 51,350, the upward trend is expected to persist, potentially reaching levels of 52,250-52,700. A fall below this SMA might signify an increase in selling pressure.
Insight from Jatin Gedia, Sharekhan indicates that price movements are within expected ranges, and this trend might continue in subsequent trading sessions. The broader market outlook remains bullish, with potential upward movement following a consolidation phase, targeted towards 25,500-25,700. Support for Nifty is positioned around 25,200-25,150.
Regarding Bank Nifty, the positive crossover of daily and hourly indicators points to potential bullish momentum. The 52,000 mark poses a significant resistance level; if surpassed, Bank Nifty could rally towards 52,500-52,600. Conversely, support levels are noted at 51,500-51,400.
Disclaimer: The insights shared in this article are the personal opinions of the analysts and do not reflect the views of Moneycontrol.com. Users are encouraged to consult with certified financial experts before making any investment decisions.
