Domestic equities traded in rangebound today amid mixed cues from global equities. The 30-share BSE Sensex ended at 58,177.76, down 127 points or 0.22% while the broader NSE Nifty closed at 17,355.30 on Monday almost 14 points lower from its previous close.
A strong rebound in IT and metal stocks arrested the decline fall due to selling pressure in heavyweight financials and Reliance Industries. Sustained expectations of strong September quarter earnings led investors to lap up IT names.
Gains in TCS, Bajaj Finance, HDFC, Kotak Mahindra and Hindalco were offset by losses in Reliance, ICICI Bank, HDFC Bank, HUL and Adani Ports. Sectoral gauges Nifty Metal and Media gained 1.3% during Monday trades while Pharma, IT, Realty indices also ended in the green zone.
Broader markets were upbeat as compared to blue-chip indices with Nifty Midcap 100 and Small Cap 100 indices ending the day with half-a-percent gains on improving prospects of sustainable earnings recovery.
“The market witnessed a small correction and a reversal from the support of Nifty 50 Index level of 17250. It is suggested that 17200-17250 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 17200-17250, it can witness higher levels of 17500. The technical indicator suggests, a volatile movement in the market in a small range between 17200-17500,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research
Traders will eye the rise in the unemployment rate, periodically published by National Statistical Office (NSO). Market participants and economists will also watch wholesale price index (WPI) inflation for August 2021 slated to be published on Monday to gauge whether RBI’s reaction with respect to monetary policy decisions.
RBI Governor Shaktikanta Das had said many high-frequency indicators show an uptick in economic activity and the central bank is quite optimistic about its 9.5 percent GDP growth estimate for FY 21-22.
