Market Closing Bell: Domestic equity indices NSE Nifty 50 and BSE Sensex closed in the green on Monday, as traders celebrated the US Federal Reserve Chairman’s less hawkish stance and new measures by the Chinese authorities to support the markets. Nifty 50 closed at 19,306.05, while Sensex closed the trading session at 64,996.60, giving up the 65,000 level. The broader markets settled largely in the green, with Nifty Midcap 100 and Nifty Smallcap 100 adding 0.5% and 0.74%. Sectorally, all indices save for Nifty FMCG, Nifty IT and Nifty Oil & Gas gained. Bank Nifty rose 0.6%, while Nifty Pharma, Nifty Realty and Nifty PSU Bank clocked the highest gains.
Technical Outlook
“Technically, although Nifty cleared the intraday resistance of 19350, it failed to close above the same due to profit booking at higher levels. The index has formed a double bottom formation near the important support level, indicating strong possibility of a pullback rally from the current levels. For day traders, as long as the index is holding 19220, the positive sentiment is likely to continue, above which, the pullback rally till 19400-19450. On the other side, below 19220, the selling pressure is likely to accelerate, and below the same the index could slip till 19150-19120,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
IT faces challenges on potential rate hikes
“”The highly anticipated Jackson Hole meeting didn’t bring much surprise, as the Fed chair expressed satisfaction with the progress of policy measures and reiterated its commitment to managing inflation within target bounds. This has raised expectations of a rate hike during the November Fed meeting. Global markets traded positively, led by Asian peers, as China’s measures to support the property sector boosted sentiment. Domestically, all major sectors, along with mid and small caps, remained positive, except for the IT sector, which faced concerns related to potential rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.
RIL AGM
Reliance Industries Limited (RIL) has begun its 46th Annual General Meeting 2023 on Monday. While addressing the shareholders, RIL Chairman Mukesh Ambani said that Reliance Industries has cumulatively invested more than $150 billion in the last 10 years. Further, he added that RIL has also set new records in creating employment and has added 2.6 lakh jobs in FY23. Reliance, at the event, also announced that its Jio AirFiber will be launched on the occasion of Ganesh Chaturthi on September 19. Further, talking about Reliance Retail, Mukesh Ambani said that the valuation of Reliance Retail has almost doubled in less than 3 years, notwithstanding the intervening Covid-19 pandemic. The share price of Reliance Industries ended 1.27% lower at Rs 2,436.95, while Jio Financial Services gave up over 2% to settle at Rs 210.10 apiece.