Nifty, Sensex end in red for 2nd straight day; further consolidation likely, add pharma, energy stocks on dips | The Financial Express

Nifty, Sensex end in red for 2nd straight day; further consolidation likely, add pharma, energy stocks on dips

Indian equity markets trimmed opening losses and came off day’s lows in the afternoon today. However, both benchmark indices ended flat in red for second consecutive session as dull global cues drew dampened investors’ sentiments.

Nifty, Sensex end in red for 2nd straight day; further consolidation likely, add pharma, energy stocks on dips
Tata Steel, NTPC, Titan Company, Nestle India were among the index losers

Indian equity markets trimmed opening losses and came off day’s lows in the afternoon today. However, both benchmark indices ended flat in red for second consecutive session as dull global cues drew dampened investors’ sentiments. The S&P BSE Sensex closed at 59,029, down 168 points or 0.28%, while the Nifty50 ended at 17,624, down 31 points or 0.18 per cent. Sectorally, the Nifty Auto index fell over 1%, but the Nifty Pharma index gained 0.8%. Analysts believe consolidation in markets can continue further amid high volatility. Nifty is looking for direction over the past few days. Investors may see limited opportunities to go fresh aggressively long, according to analysts. Pharma and energy stocks attractive bets, they added.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

“Markets languished in negative territory through the session tracking weak global cues, as uncertainty over a possible global recession due to likely rate hikes going ahead continued to weigh on sentiment. We are of the view that on the lower side, 17500 would be the key support level while 17700 could act as a major hurdle for the bulls. Post 17700 breakout, the index could move up to 17800-17850. On the flip side, dismissal of 17500 could increase the selling pressure. Below 17500, we could expect short term weakness till 17400-17300.”

Also Read: FM Sitharaman HIGHLIGHTS: Job creation govt’s top priority; Gautam Adani bets India, US will lead world growth

Vinod Nair, Head of Research at Geojit Financial Services

“The latest economic figures indicate that the US central bank would continue to raise interest rates. As, according to ISM’s (Institute of Supply Management) US Non-Manufacturing PMI, the services sector expanded last month at a rate that was higher than anticipated, putting pressure on global markets. Main indices followed the global trend however, mid & small caps rallied with strong outperformance.”

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

“Nifty has been witnessing short term consolidation, swinging in both the directions. On September 7, it opened gap down however there was no follow through selling. The index attracted buying support near the psychological mark of 17,500 as well as near the swing low of 17,468. Structurally, the consolidation can continue further and any move towards 17,700 is expected to attract another round of selling. Additionally, the selling pressure can aggravate once the level of 17,500 is breached on a closing basis.”

Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities

“Nifty continues to trade with a medium term positive bias and buying on dips with high volatility. Current trend support is seen at 17000 and resistance placed at 18000/18100. Short term Momentum remains positive despite multiple bearish attempts. Most heavy weight stocks are trading in uptrend and away from buying zone. Limited opportunities available to go fresh aggressively long. Pharma and energy stocks look attractive.”

Also Read: Adani group to build 3 Giga factories by 2030 as part of $70 billion green investment

Rupak De, Senior Technical Analyst, LKP Securities

“Nifty started to gap down and remained with a positive bias throughout the day. On the lower end, bulls were able to protect 17500 on a sustained basis, which attracted buyers at the lower levels. The trend remains positive for the near term. On the lower end, support is visible at 17470, below which Nifty may drift down towards 17200. Resistance is visible at 17750.”

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 07-09-2022 at 16:18 IST