Share Market Today: Sensex Surges Past 600, While Nifty Dips by Nearly 200 Points: Market Outlook for September 29
Share Market Today
Market Outlook and Analysis
Market participants were met with a significant downturn on September 28, coinciding with the monthly expiry. The Sensex, one of India’s primary stock market indices, plummeted by over 600 points, while the Nifty, another major index, dropped by nearly 200 points. Both indices closed down by approximately 1%.
This abrupt decline was accompanied by considerable pressure on various sectors, including IT, FMCG, and auto stocks. Additionally, there were notable declines in realty, PSE (Public Sector Enterprises), infra (Infrastructure), and banking shares.
The selling spree extended to midcap and smallcap shares, reflecting a widespread decline in the market.
Among the various sector indices on the Bombay Stock Exchange (BSE), only capital goods managed to stay afloat, while the rest experienced losses.
As the trading day concluded, the Sensex closed at 65,508 points, marking a decline of 610 points from the previous day.
The Nifty followed suit, closing at 19,524 points, down by 193 points. Meanwhile, Nifty Bank, which comprises banking stocks listed on the NSE (National Stock Exchange), faced a significant drop of 287 points, ending the day at 44,301 points. The midcap index also witnessed a substantial decline of 537 points, closing at 40,104 points.
Among the individual stocks within these indices, the majority experienced losses. Specifically, out of the 50 stocks in the Nifty index, 44 registered declines.
In the Sensex, 24 out of the 30 stocks saw declines, indicating the broad-based nature of the market downturn.
Even within the banking sector, which has been a key focus for many investors, 10 out of the 12 shares listed in the Nifty Bank index declined.
However, there was a glimmer of positivity in the currency market, where the Indian rupee managed to strengthen by 4 paise against the U.S. dollar, closing at a rate of 83.19 rupees per dollar.
This modest gain in the rupee came amidst the broader market turmoil and may have provided some relief to currency traders.
Looking ahead to September 29, market analysts and experts offer their insights and predictions on how the market might behave:
Kunal Shah, LKP Securities:
Kunal Shah of LKP Securities observed significant selling pressure in Bank Nifty on September 28, which contributed to the index’s decline.
He highlights two critical levels for Bank Nifty traders to monitor. The first is strong resistance at the 20-day moving average (20DMA), located at 45,000 points.
The second is strong support at 44,200 points. If the support level at 44,200 is breached, it could trigger further downward movement in Bank Nifty, potentially leading to a decline towards 43,800 points.
Given this analysis, Shah advises traders to maintain a selling strategy on the upside, as long as Bank Nifty remains below the resistance level of 45,000 points.
Rupak Dey, LKP Securities:
Rupak Dey, also from LKP Securities, provides a bearish outlook for the market. He points out that Nifty experienced a significant correction on September 28, failing to sustain levels above 19,750 points.
He notes that the most recent candle on the daily chart is surrounded by candles from previous days, which is indicative of negative sentiment.
Dey suggests that the bearish trend in the market persists and advises investors to consider selling in the event of any significant price surges.
According to his analysis, Nifty could potentially fall further, with a target level of around 19,250 points. Immediate support is identified at 19,450 points, while immediate resistance is visible at 19,600 points.
This market analysis provides a snapshot of the conditions that prevailed on September 28, as well as expert opinions on the potential market movements for September 29.
However, it is crucial to remember that the stock market is influenced by a complex interplay of factors, including economic data, global events, corporate earnings, and investor sentiment.
Consequently, market conditions can change rapidly, and investors should exercise caution and conduct their own research before making any investment decisions.
