Mid-day Mood | Sensex, Nifty flat as traders seek clarity on US economy; broader indices outperform

view original post

Analysts view the slight pullback as a breather after a sustained rally and not as a shift in optimism surrounding domestic market sentiment.

The broader market outperformed the benchmarks, with the BSE Midcap rising 0.4 percent and the BSE Smallcap index gaining 0.6 percent.

‘);
$(‘#lastUpdated_’+articleId).text(resData[stkKey][‘lastupdate’]);

//if(resData[stkKey][‘percentchange’] > 0){
// $(‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”);
// $(‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”);
//}else if(resData[stkKey][‘percentchange’] < 0){
// $(‘#greentxt_’+articleId).removeClass(“greentxt”).addClass(“redtxt”);
// $(‘.arw_green’).removeClass(“arw_green”).addClass(“arw_red”);
//}
if(resData[stkKey][‘percentchange’] >= 0){
$(‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”);
//$(‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”);
$(‘#gainlosstxt_’+articleId).find(“.arw_red”).removeClass(“arw_red”).addClass(“arw_green”);
}else if(resData[stkKey][‘percentchange’] < 0){
$(‘#greentxt_’+articleId).removeClass(“greentxt”).addClass(“redtxt”);
//$(‘.arw_green’).removeClass(“arw_green”).addClass(“arw_red”);
$(‘#gainlosstxt_’+articleId).find(‘.arw_green’).removeClass(“arw_green”).addClass(“arw_red”);
}

$(‘#volumetxt_’+articleId).show();
$(‘#vlmtxt_’+articleId).show();
$(‘#stkvol_’+articleId).text(resData[stkKey][‘volume’]);
$(‘#td-low_’+articleId).text(resData[stkKey][‘daylow’]);
$(‘#td-high_’+articleId).text(resData[stkKey][‘dayhigh’]);
$(‘#rightcol_’+articleId).show();
}else{
$(‘#volumetxt_’+articleId).hide();
$(‘#vlmtxt_’+articleId).hide();
$(‘#stkvol_’+articleId).text(”);
$(‘#td-low_’+articleId).text(”);
$(‘#td-high_’+articleId).text(”);
$(‘#rightcol_’+articleId).hide();
}
$(‘#stk-graph_’+articleId).attr(‘src’,’//appfeeds.moneycontrol.com/jsonapi/stocks/graph&format=json&watch_app=true&range=1d&type=area&ex=’+stockType+’&sc_id=’+stockId+’&width=157&height=100&source=web’);
}
}
}
});
}

$(‘.bseliveselectbox’).click(function(){
$(‘.bselivelist’).show();
});

function bindClicksForDropdown(articleId){
$(‘ul#stockwidgettabs_’+articleId+’ li’).click(function(){
stkId = jQuery.trim($(this).find(‘a’).attr(‘stkid’));

$(‘ul#stockwidgettabs_’+articleId+’ li’).find(‘a’).removeClass(‘active’);
$(this).find(‘a’).addClass(‘active’);
stockWidget(‘N’,stkId,articleId);
});
$(‘#stk-b-‘+articleId).click(function(){
stkId = jQuery.trim($(this).attr(‘stkId’));
stockWidget(‘B’,stkId,articleId);
$(‘.bselivelist’).hide();
});
$(‘#stk-n-‘+articleId).click(function(){
stkId = jQuery.trim($(this).attr(‘stkId’));
stockWidget(‘N’,stkId,articleId);
$(‘.bselivelist’).hide();
});
}

$(“.bselivelist”).focusout(function(){
$(“.bselivelist”).hide(); //hide the results
});

function bindMenuClicks(articleId){

$(‘#watchlist-‘+articleId).click(function(){
var stkId = $(this).attr(‘stkId’);
overlayPopupWatchlist(0,2,1,stkId);
});
$(‘#portfolio-‘+articleId).click(function(){
var dispId = $(this).attr(‘dispId’);
pcSavePort(0,1,dispId);
});
}

$(‘.mc-modal-close’).on(‘click’,function(){
$(‘.mc-modal-wrap’).css(‘display’,’none’);
$(‘.mc-modal’).removeClass(‘success’);
$(‘.mc-modal’).removeClass(‘error’);
});
function overlayPopupWatchlist(e, t, n,stkId) {
$(‘.srch_bx’).css(‘z-index’,’999′);
typparam1 = n;
if(readCookie(‘nnmc’))
{
var lastRsrs =new Array();
lastRsrs[e]= stkId;
if(lastRsrs.length > 0)
{
var resStr=”;
let secglbVar = 1;
var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’;
$.get( “//www.moneycontrol.com/mccode/common/rhsdata.html”, function( data ) {
$(‘#backInner1_rhsPop’).html(data);
$.ajax({url:url,
type:”POST”,
dataType:”json”,
data:{q_f:typparam1,wSec:secglbVar,wArray:lastRsrs},
success:function(d)
{
if(typparam1==’1′) // rhs
{
var appndStr=”;
//var newappndStr = makeMiddleRDivNew(d);
//appndStr = newappndStr[0];
var titStr=”;var editw=”;
var typevar=”;
var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’);
var phead =’Why add to Portfolio?’;
if(secglbVar ==1)
{
var stkdtxt=’this stock’;
var fltxt=’ it ‘;
typevar =’Stock ‘;
if(lastRsrs.length>1){
stkdtxt=’these stocks’;
typevar =’Stocks ‘;fltxt=’ them ‘;
}

}

//var popretStr =lvPOPRHS(phead,pparr);
//$(‘#poprhsAdd’).html(popretStr);
//$(‘.btmbgnwr’).show();
var tickTxt =’‘;
if(typparam1==1)
{
var modalContent = ‘Watchlist has been updated successfully.’;
var modalStatus = ‘success’; //if error, use ‘error’

$(‘.mc-modal-content’).text(modalContent);
$(‘.mc-modal-wrap’).css(‘display’,’flex’);
$(‘.mc-modal’).addClass(modalStatus);

//var existsFlag=$.inArray(‘added’,newappndStr[1]);
//$(‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’);
//if(existsFlag == -1)
//{
// if(lastRsrs.length > 1)
// $(‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’);
// else
// $(‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’);
//
//}
}

//$(‘.accdiv’).html(”);
//$(‘.accdiv’).html(appndStr);
}
},
//complete:function(d){
// if(typparam1==1)
// {
// watchlist_popup(‘open’);
// }
//}
});
});
}
else
{
var disNam =’stock’;
if($(‘#impact_option’).html()==’STOCKS’)
disNam =’stock’;
if($(‘#impact_option’).html()==’MUTUAL FUNDS’)
disNam =’mutual fund’;
if($(‘#impact_option’).html()==’COMMODITIES’)
disNam =’commodity’;

alert(‘Please select at least one ‘+disNam);
}
}
else
{
AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’;
commonPopRHS();
/*work_div = 1;
typparam = t;
typparam1 = n;
check_login_pop(1)*/
}
}

}

function commonPopRHS(e) {
/*var t = ($(window).height() – $(“#” + e).height()) / 2 + $(window).scrollTop();
var n = ($(window).width() – $(“#” + e).width()) / 2 + $(window).scrollLeft();
$(“#” + e).css({
position: “absolute”,
top: t,
left: n
});
$(“#lightbox_cb,#” + e).fadeIn(300);
$(“#lightbox_cb”).remove();
$(“body”).append(”);
$(“#lightbox_cb”).css({
filter: “alpha(opacity=80)”
}).fadeIn()*/

$(“.linkSignUp”).click();
}

}
function closeoverlay(n){
document.getElementById(‘back’).style.display = ‘none’;
document.getElementById(‘backInner’+n).style.display = ‘none’;
}
stk_str=”;
stk.forEach(function (stkData,index){
if(index==0){
stk_str+=stkData.stockId.trim();
}else{
stk_str+=’,’+stkData.stockId.trim();
}
});

$.get(‘//www.moneycontrol.com/techmvc/mc_apis/stock_details/?classic=true&sc_id=’+stk_str, function(data) {
stk.forEach(function (stkData,index){
$(‘#stock-name-‘+stkData.stockId.trim()+’-‘+article_id).text(data[stkData.stockId.trim()][‘nse’][‘shortname’]);
});
});

function redirectToTradeOpenDematAccountOnline(){
if (stock_isinid && stock_tradeType) {
window.open(`https://www.moneycontrol.com/open-demat-account-online?classic=true&script_id=${stock_isinid}&ex=${stock_tradeType}&site=web&asset_class=stock&utm_source=moneycontrol&utm_medium=articlepage&utm_campaign=tradenow&utm_content=webbutton`, ‘_blank’);
}
}

The mixed trend in global markets and caution ahead of upcoming US economic data kept investors on edge on September 5, leading the Sensex and Nifty 50 to trade flat by midday. Analysts view the slight pullback as a breather after a sustained rally and not as a shift in optimism surrounding domestic market sentiment.

Weak US labour market data and comments from a key Federal Reserve official bolstered the case for an aggressive interest rate cut on September 18, with the odds of a 50-basis-point reduction rising to 45 percent from 38 percent a day before.

Story continues below Advertisement

Emerging markets such as India see a rise in foreign fund inflows from US interest rate cuts.

At 11.45 am, the Sensex was down 80 points or 0.1 percent at 82,272 and the Nifty 50 was down 22 points at 25,176. About 2,076 shares advanced, 1,173 shares declined, and 97 shares were unchanged.

The broader market outperformed the benchmarks, with the BSE Midcap rising 0.4 percent and the BSE Smallcap index gaining 0.6 percent. “In a bull market, mid-caps always outperform large caps. However, there is some froth building in certain pockets of the mid-cap space. Despite this, the strong liquidity in both the primary and secondary markets is enough to absorb any selling pressure,” said Kranthi Bathini, Director – Equity strategy at WealthMills Securities.

Among individual stocks, Titan Company stood out, surging over 3 percent on heavy volumes and emerging as the top gainer on the Nifty 50 index.

Investors are now focusing on US services industry data and jobless claims, due to be released later in the day. The highly anticipated nonfarm payrolls report, due on September 6, is expected to provide further insights into the health of the US economy and clues about the Fed’s monetary policy.

Follow our live blog for all the market action

Story continues below Advertisement

Sectoral Trend

Automobile and IT stocks dragged the Nifty 50 index lower, while consumer durables, metals, and mining stocks helped limit the decline. Similar to the previous session’s trend, investors turned to defensive sectors like FMCG and pharma in a weak market. Nifty Healthcare and Nifty Pharma rose by 0.7 percent and 0.5 percent, respectively.

Fundamental View

“In the present context of elevated valuations, investors should refrain from aggressive investment in poor quality stocks,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He advised investors to buy high-quality stocks during any declines and wait patiently.

“Banking stocks, whose valuations remain depressed due to the credit-deposit mismatch and the consequent concern over profitability, offer good contrarian buying opportunity for long-term investors,” Vijaykumar said.

Technical View

From a technical perspective, the 25,100–25,080 range is seen as a strong support zone for the Nifty 50, according to Sameet Chavan, Head of Research, Technical and Derivatives at Angel One. “On the higher end, the highs of 25,300-25,350 is now expected to be seen as a resistance and an authoritative breach could only open the next leg of the rally towards 25400-25500,” he said.

Also Read | IT, consumer durable, and financial sectors see strong FII buying in late August

Key Nifty gainers

Titan Company, BPCL, Divis Labs, ITC, LTIMindtree

Key Nifty losers

Britannia, Bajaj Finance, Nestle, Bajaj Finserv, HDFC Life

Key Sensex gainers

Titan Company, ITC, SBI, Tata Steel, Sun Pharma

Key Sensex losers

Nestle, Bajaj Finance, Bajaj Finserv, L&T, Kotak Mahindra

Stock moves

Max Financial Services: A large deal worth Rs 1,637 crore took place on the exchanges on September 5 for shares of Max Financial Services. Shares of the company fell nearly 2 percent after around 1.5 crore shares, making up a 4.3 percent stake in the non-bank finance lender changed hands in the large deal.

Uno Minda: Shares fell nearly 3 percent after Kotak Institutional Equities downgraded the stock to ‘Sell’ from ‘Add’, while also cutting the target price to Rs 970 from Rs 1,000. The brokerage highlighted concerns over a slowdown in the passenger vehicle segment, which is expected to impact growth.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.