Stock Market Overview (September 23)
The Indian equity markets continued their upward trend on September 23, marking the third consecutive day of gains. Both Sensex and Nifty hit impressive highs, indicating robust investor confidence. The Sensex climbed by 384.30 points or 0.45% to close at 84,928.61, while the Nifty surged by 148.05 points, or 0.57%, closing at 25,939. This rally came with 2,274 stocks advancing, 1,661 declining, and 118 remaining unchanged.
Top Performers and Sector Analysis
Among the Nifty index, the top gainers included major players such as Mahindra & Mahindra (M&M), Oil and Natural Gas Corporation (ONGC), Bajaj Auto, SBI Life Insurance, and Hero MotoCorp. Conversely, Eicher Motors, Divi’s Laboratories, ICICI Bank, Tech Mahindra, and IndusInd Bank were on the downside, reflecting market volatility.
Sector-wise, the PSU Bank index experienced a significant rise of over 3%, while Realty stocks climbed more than 2%. Other sectors, including Auto, Energy, FMCG, Metal, Pharma, and Media, showcased gains between 0.5% to 1%. In contrast, the IT sector dipped by 0.5%, shedding some weight in the overall market.
Midcap and Smallcap Performance
The market witnessed a noteworthy shift towards midcap and smallcap stocks, with the BSE Midcap and Smallcap indices gaining 0.7% and over 1%, respectively. This indicates a growing investor interest in smaller companies, reflecting a more diversified market approach.
Market Sentiment and Expert Analysis
Aditya Gaggar, Director at Progressive Shares, noted that the Nifty index fluctuated within a wide range during the trading session but ultimately reached a record high. All sectors, except for IT, demonstrated positive momentum, particularly the PSU banks and realty stocks.
Market conditions suggest that after a strong rally in the last two trading sessions, the Nifty may be overbought. A potential profit booking phase could emerge, with significant support levels identified for Nifty in the 25,800-25,850 range. The psychological resistance level is pegged at 26,000, which traders are watching closely.
VK Vijayakumar from Geojit Financials highlighted that banking stocks are predominantly influencing market movement. He attributed this to two key factors: the recent shift of foreign institutional investors (FIIs) from net sellers to net buyers, particularly in banking stocks, and the decreasing credit-deposit gap, which is easing pressure on bank margins.
Nifty Bank Trends
Mandar Bhojane, a derivatives analyst at Choice Broking, elaborated on the bullish trends exhibited by Nifty Bank, particularly in private sector banks. He indicated immediate resistance levels for Bank Nifty at 54,500 and 55,000, with significant support noted at 53,000.
Conclusion
Overall, the Indian stock market showed resilience with notable advancements across various sectors, particularly in banking and small to midcap stocks. Investors are advised to maintain a cautious approach amid potential profit booking and to watch for key resistance and support levels in the coming trading sessions. As always, it is prudent for investors to consult financial experts before making investment decisions.
