Indian stock indices continued their upward trajectory for the seventh consecutive session, demonstrating resilience despite market caution ahead of a pivotal announcement by the U.S. Federal Reserve later today. Both Nifty and Sensex closed with marginal gains, with Nifty inching closer to the 24,830 mark, finishing at 24,823.15, up 0.05% or 11.65 points. Sensex also recorded a slight increase, closing at 81,086.2, up 0.04% or 33.02 points.
Auto Sector Outperforms Amid Broad Market Profit Booking
The trading day was characterized by widespread profit booking across most sectors, with the notable exception of the auto sector. The Nifty Auto index bucked the trend, closing in the green, bolstered by bullish sentiments from JP Morgan. The brokerage firm highlighted the two-wheeler segment as a standout performer within the auto industry, predicting it would surpass other segments. This optimism was reflected in the stock prices of Bajaj Auto and TVS Motor, both of which reached new all-time highs during the trading session.
Nifty FMCG Hits New High but Retreats on Profit Booking
The Nifty FMCG index also reached a fresh 52-week high during the session. However, it could not maintain its upward momentum and ended the day in the red due to profit booking at elevated levels. This trend mirrored the broader market, where investors opted to book profits after a sustained rally in recent sessions.
Top Performers and Laggards: Bajaj Auto Shines, ONGC Declines
Among the Nifty constituents, Bajaj Auto emerged as a top performer, driven by strong market confidence in the auto sector. Other notable gainers included Coal India, Tata Motors, Bharti Airtel, and Sun Pharma. On the other hand, stocks like ONGC, LTIMindtree, Titan, Divi’s Labs, and Wipro were among the day’s laggards, reflecting a more cautious market sentiment.
Market Sentiment Ahead of Fed Chair Powell’s Address
Vinod Nair, Head of Research at Geojit Financial Services, commented on the day’s market performance, noting that Indian indices remained relatively flat as investors awaited a crucial speech by Federal Reserve Chair Jerome Powell. Global market sentiments were mixed, adding to the cautious trading environment. Nair highlighted that while most sectoral indices were in the red, the auto sector outshone others, thanks to industry preparations for the upcoming festive season, marked by multiple new vehicle launches.
Stocks in Focus: UltraTech Cement and Nykaa
UltraTech Cement ended the day with a gain of 0.64%, closing at Rs 11,379.95 per share on the BSE. The stock’s rise was supported by Bernstein maintaining an outperform rating. Nykaa shares also saw significant movement, hitting a new 52-week high during early trade and closing with an 8% gain at Rs 226.9 per share. The surge in Nykaa’s stock followed a notable change in equity ownership, with 1.4% of the company’s shares changing hands.
European Markets Maintain Gains Amid Caution
European markets traded positively, with Germany’s DAX leading the gains. However, similar to the Indian markets, European indices were tempered by a cautious outlook ahead of Powell’s speech.
Technical Analysis: Nifty’s Key Levels to Watch
Rupak De, Senior Technical Analyst at LKP Securities, provided insights into the Nifty’s technical outlook. He noted that the index experienced another day of subdued movement, though the Relative Strength Index (RSI) signaled a bullish crossover, maintaining a positive trend as it closed above the 21-day Exponential Moving Average (EMA). De suggested that the market currently favors a “buy on dips” strategy as long as the Nifty stays above 24,650. However, he warned of potential resistance at the 24,850-24,900/25,000 levels, with a significant downside correction possible if the index falls below 24,650.
Conclusion
Indian markets are maintaining a cautious yet positive stance as they navigate a mix of global and domestic factors. While profit booking is evident across several sectors, the auto industry continues to shine, driven by optimistic forecasts and festive season preparations. Investors are closely watching the upcoming U.S. Fed announcement, which could set the tone for future market movements.
