Market Wrap: Sensex, Nifty end volatile session flat; auto, metals shine

The Indian benchmark equity indices ended Tuesday’s volatile session flat amid mixed global cues. Gains in metals and auto stocks were offset by selling in banking, FMCG and IT stocks.

Asian markets traded higher amid hopes of further stimulus measures from China, with the MSCI Asia ex-Japan index gaining 1.8%.

Investors also remained cautious ahead of the outcome of the upcoming US Federal Reserve's policy meeting on Wednesday. The American central bank is widely expected to hike interest rates by 25 basis points (bps).

On the domestic front, metals stocks rose after China, the world's largest producer and consumer of metals, announced plans to provide further support to its post-COVID economic recovery.

Investors also reacted to the June quarter corporate earnings with some top companies such as Bajaj Auto, Asian Paints, among others announcing their Q1 results during the day. 

Stock Market Today

The Sensex ended 29.07 points, or 0.04%, lower at 66,355.71, while the Nifty settled the day 3.35 points, or 0.02%, higher at 19,675.70. 

Broader markets ended mixed, as the Nifty Smallcap 100 fell 0.11%, while the Nifty Midcap 100 index rose 0.39% for the day.

The BSE Midcap index closed with a gain of 0.39% at 29,750.29, while the BSE Smallcap index ended 0.31% higher at 34,279.08.

Meanwhile, the Indian rupee ended 5 paise lower at 81.87 a dollar.

Top Nifty Gainers and Losers

In the Nifty pack, 25 stocks ended with gains, while the remaining 25 ended lower.

Hindalco Industries was the top gainer on the Nifty index, rising 4% for the day, followed by JSW Steel (up 3.14%), Tata Steel (up 3.12%), UltraTech Cement (up 2.2%) and NTPC (up 2.09%) 

On the contrary, Asian Paints lost the most, declining 4.20%, followed by ITC (down 2.12%), Larsen & Toubro (down 1.54%), Britannia Industries (1.47%) and Kotak Mahindra Bank (down 1.35%).

Read here: Top gainers, losers today: JSW Steel, Tata Steel, ITC, Asian Paints among most active stock

Sectoral Indices Today

The Nifty Metal index jumped 2.84%, Nifty Media gained 1.51%, while Nifty Auto rallied 0.95% for the day.

Nifty Consumer Durables ended 0.79% higher and Nifty Oil & Gas closed with a gain of 0.69%, followed by Nifty Pharma which was up 0.36%.

Nifty Bank ended 0.17% lower.

Nifty PSU Bank fell 1.46%, Nifty FMCG declined 0.86%, Nifty IT was down 0.28% and Nifty Realty dropped 0.40%.

Experts' Views on Markets

“Indian indices hovered along the flat line, waiting ahead for the crucial decision of Fed policy. Metal stocks rose due to China's commitment to provide policy support to its realty sector, while utilities were up in anticipation of demand & improvement in operating margin. The recent correction of the domestic market can be attributed to several factors, including muted start to Q1 results, a reversal in FII activity, a rising dollar index, and an increase in crude oil prices,” said Vinod Nair, Head of Research at Geojit Financial Services.

Technical Views on Markets

"Nifty made a near hammer like pattern after a two day fall, suggesting possibility of a short term upward reversal," said Deepak Jasani - Head Retail Research, HDFC Securities.

He expects Nifty could stay in the 19,783-19,567 band for the near term.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. said that the Nifty index is currently experiencing profit booking around the psychological level of 20,000, but there are no significant signs of weakness in the market.

“The 20-day moving average (20-DMA), which aligns with the 19,500 level, is crucial as it serves as a critical support level. Only if the Nifty falls below this level can we anticipate a potential correction in the market. On the upside, the immediate resistance area lies between 19,800 and 20,000,” Gour said.

The Bank Nifty index is performing relatively well, with a critical support area between 45,000 and 45,200. 

“A substantial decline is expected only if the Bank Nifty breaches this support level. On the upside, the resistance zone is identified at 46,600 to 47,000,” Gour added.

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