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The Indian stock market experienced a volatile session on September 24th, failing to maintain its record-breaking highs despite the Sensex and Nifty crossing 85,000 and 26,000, respectively, during intraday trading. The Sensex ultimately closed down 14.57 points or 0.02 percent at 84,914.04, while the Nifty ended up 1.40 points or 0.01 percent at 25,940.40. This marked an end to the three-day winning streak for the indices.
The day began with a negative start, but the market recovered in the early hours, oscillating between gains and losses throughout the session. The final hour saw buying activity that helped the main indices reach new record highs. However, this bullish momentum failed to sustain, resulting in a relatively flat close. Despite the flat closure, the market witnessed both bullish and bearish activity throughout the day, indicating indecisiveness among investors.
Among the sectors, the metal index saw a notable rise of 3 percent, followed by oil & gas (up 0.6 percent) and power (up 1.4 percent). On the other hand, the PSU Bank, FMCG, and telecom sectors experienced losses between 0.5 and 1 percent. The BSE midcap and smallcap indices closed on a flat note. It's worth noting that nearly 300 stocks on the BSE hit their 52-week high, including notable companies like Aditya Birla Fashion, Apollo Hospitals, AstraZeneca Pharma, and Bajaj Auto.
Looking ahead, market analysts remain cautiously optimistic. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty's movement within a narrow range on September 24th suggests a breather after a three-day rally. He highlighted the positive short-term sentiment with the index staying above the critical 21-day EMA, supported by a bullish crossover in the daily RSI. However, De emphasized that for the rally to continue, the Nifty needs to decisively break above the 26,000 level. Until then, he expects range-bound movement between 25,800 and 26,000.
Aditya Gaggar, Director of Progressive Shares, echoed a similar sentiment, highlighting both bullish and bearish activity during the day. He pointed out that the IT sector played a role in pushing the index past the psychological barrier of 26,000, but it lost most of its gains towards the end of the session. Gaggar also noted that the Broader markets saw diverging trends, with Midcaps outperforming the Frontline Index while Smallcaps ended in the red. He identified a Spinning Top candlestick pattern at record levels, indicating indecisiveness between bulls and bears. Gaggar expects a strong move above 26,000 to open doors for 26,100, while the zone of 25,800-25,850 should serve as a strong support area.
Overall, the Indian equity market exhibited mixed signals on September 24th, closing on a relatively flat note despite hitting record highs during intraday trading. While the short-term sentiment remains positive, the market's future direction hinges on whether the Nifty can decisively break above the 26,000 level. Analysts expect range-bound movement in the coming days, with both bullish and bearish forces vying for control.
Source: Taking Stock: Market fails to hold record high; Nifty crosses 26,000, Sensex above 85,000