Stock Market Highlights 8 Sept 2022: Nifty ends just shy of 17,800, Sensex jumps around 650 points; bank, financial stocks shine
(By Ravi Kant Kumar)
Stock Market Today Live Updates: The Indian market on Thursday staged a strong comeback after two consecutive negative closings. The domestic equity benchmarks gained around one per cent as Nifty ended near 17,800, while the Sensex settled with a gain of around 650 points.
The rally was led by bank and financial stocks, while small cap stocks too attracted huge buying interest on Thursday. Nifty PSU Bank rose 2.5%, while Private Bank and Nifty Bank gained 1.88% respectively and 1.91%
Among stocks, Shree Cement and BPCL led the Nifty50 pack, while the Sensex was driven by Axis Bank and Tech Mahindra
Vinod Nair, Head of Research at Geojit Financial Services, said the domestic financial market experienced a wave of optimism tracking strength across global markets as oil prices eased, cooling investor concerns about rising inflation.
"Despite premium valuations, consistent FII inflows are aiding Indian bourses to stay resilient. On the sectoral front, auto stocks were in focus as retail sales of automobiles grew 8.31% YoY in August while banking stocks moved in sync," he said.
Decoding factors behind today's rally, S Ranganathan, Head of Research at LKP securities, said positive Global cues with cooling oil prices and all-time high demat account openings in the country helped pull the sentiments in favour of Bulls as BFSI coupled with the PSU Banks led the charge today with a percentage gain in the Nifty. "Several Cement Counters were seen buzzing around for the second consecutive day even as the Metal index remained sluggish with a percentage loss," he said.
"There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient. The tape is signalling momentum and bullishness. Investors should not 'fight the tape' and take a contrarian view, at least in the near-term. The market may be discounting the robust growth revival in India and the consequent earnings growth," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The buy on dips strategy has worked very well in this rally and it makes sense to continue with the strategy, he said.
"Domestic economy-facing segments such as banks, autos, capital goods, telecom and FMCG will continue to do well. If the rally is to sustain from the current levels, it will need support from the beaten down IT segment, which looks good from the valuation perspective." he recommended.
(By Ravi Kant Kumar)
Stock Market Today Live Updates: The Indian market on Thursday staged a strong comeback after two consecutive negative closings. The domestic equity benchmarks gained around one per cent as Nifty ended near 17,800, while the Sensex settled with a gain of around 650 points.
The rally was led by bank and financial stocks, while small cap stocks too attracted huge buying interest on Thursday. Nifty PSU Bank rose 2.5%, while Private Bank and Nifty Bank gained 1.88% respectively and 1.91%
Among stocks, Shree Cement and BPCL led the Nifty50 pack, while the Sensex was driven by Axis Bank and Tech Mahindra
Vinod Nair, Head of Research at Geojit Financial Services, said the domestic financial market experienced a wave of optimism tracking strength across global markets as oil prices eased, cooling investor concerns about rising inflation.
"Despite premium valuations, consistent FII inflows are aiding Indian bourses to stay resilient. On the sectoral front, auto stocks were in focus as retail sales of automobiles grew 8.31% YoY in August while banking stocks moved in sync," he said.
Decoding factors behind today's rally, S Ranganathan, Head of Research at LKP securities, said positive Global cues with cooling oil prices and all-time high demat account openings in the country helped pull the sentiments in favour of Bulls as BFSI coupled with the PSU Banks led the charge today with a percentage gain in the Nifty. "Several Cement Counters were seen buzzing around for the second consecutive day even as the Metal index remained sluggish with a percentage loss," he said.
"There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient. The tape is signalling momentum and bullishness. Investors should not 'fight the tape' and take a contrarian view, at least in the near-term. The market may be discounting the robust growth revival in India and the consequent earnings growth," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The buy on dips strategy has worked very well in this rally and it makes sense to continue with the strategy, he said.
"Domestic economy-facing segments such as banks, autos, capital goods, telecom and FMCG will continue to do well. If the rally is to sustain from the current levels, it will need support from the beaten down IT segment, which looks good from the valuation perspective." he recommended.
Latest Updates
Bank Nifty momentum oscillators in strong buy zone
"The Bank Nifty index surpassed the crucial hurdle of 40,000 on a closing basis which clears the room for further upside on the index. The index momentum oscillators are in the strong buy zone which confirms the internal strength. The index is likely to test the level of 41,000-41,500 on the upside and the lower end support remains at the 39,000 level." Kunal Shah, Senior Technical Analyst at LKP Securities.
Stock market outook: Why market rallied 1% today?
Indian equity markets are continuing their bullish momentum followed by a period of consolidation. We were resilient when global markets were falling and now we are resuming our northward journey as global markets are showing some recovery. A sharp cut in crude oil prices is another big tailwind for the Indian equity market whereas FIIs are also in a buying mood. Banking and Financials stocks outperformed as bond yields fall due to a fall in crude oil prices. IT stocks also recovered as Nasdaq witnessed a rally overnight.
Technically, Nifty manages to close above the hurdle of 17777 which is giving confidence to the bulls and there is a good chance that Nifty may take out the psychological hurdle of 18000 for a move towards 18115/18350 levels. On the downside, 17640 is an immediate support level while 17500 is a sacrosanct support mark.
Banknifty is outperforming and managed to close above the psychological hurdle of 40000 which may lead to fresh bullish momentum towards 40500/41000 levels. On the downside, 39700 will act as an immediate and strong support level.-
Santosh Meena, Head of Research, Swastika Investmart Ltd. on Market
Nifty outlook: Index likely to stumble as it approaches 18000-mark
The Nifty had taken support near the psychological mark of 17500 on September 07 & had started moving higher. The up move extended on September 08 as well. Consequently, the index is approaching upper end of the consolidation range. 18000-17200 has been the short term consolidation range. Thus the index is likely to stumble as it approaches the 18000 mark. The overall structure suggests that we are likely to see further consolidation before the index resumes the larger uptrend.-
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Nifty, Sensex aim strong closing
Benchmarks indices aim at strong closing on Thursday. Nifty50 trades past 17,800, while the Sensex added 660 points to trade near 59,700. Nifty Bank near 40,200.
Stocks to buy with Anil Singhvi: Mudit Goyal picks Apollo Micro Systems, Titagarh Wagons and Thermax
In conversation with Zee Business Managing Editor Anil Singhvi, market expert Mudit Goyal picked three stocks –Apollo Micro Systems, Titagarh Wagons and Thermax for short-term, positional and long-term view.
शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म के लिए SMC ग्लोबल सिक्योरिटीज के मुदित गोयल से 3 बेहतरीन मिडकैप Picks
Short Term- Apollo Micro Systems
Positional Term- Titagarh Wagons
Long Term- Thermax#MidcapStocks | #stocks | @AnilSinghvi_ |@MuditGoyal_ pic.twitter.com/TFqupXZTyM
— Zee Business (@ZeeBusiness) September 8, 2022
Indian Bank hits 52-week high
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Banking, IT stocks drive rally
Bank and IT stocks were driving rally on the Dalal street in the afternoon session on Thursday. Nifty Bank reclaimed 40,000-mark as the index gained 1.6%. Meanwhile, PSU Bank rose two per cent, Private bank gained 1.7% and IT index traded higher by 0.8%
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Nifty outlook: 18600move has to wait
We had gone into yesterday wondering if buyers would regrouponce inside the 17470/400 region so as to stall a potential drop to 17000-16650. Buying did emerge just short of entering this region, and should encourage a positive opening today. But there are not enough signs of a directional move yet and the 18600move has to wait, prompting us to watchout for bears to resurface once in the 17770-850 vicinity. -Anand James - Chief Market Strategist at Geojit Financial Services.