Stock market opens in green, but slips into red amid profit-booking
The Indian stock market opened in the green on September 12, with the Nifty trading above 20,000 points. However, the broader markets witnessed an increased rush to book profits as the day progressed, which eventually drove both the benchmark indices to a flat, amid heightened volatility.
The BSE SmallCap index declined 2.5%, while the BSE MidCap index suffered a 2% hit. Auto, oil and gas, power, and realty segments recorded declines ranging from 1% to 1.5%.
At 11am, the Sensex was up 47.75 points or 0.07% at 67,174.83, and the Nifty was down 4.60 points or 0.02% at 19,991.70. About 622 shares advanced, 2447 declined, and 65 traded unchanged.
Options data suggests heavy call writing at the 20,000-20,200 zone, indicating a strong upside resistance.
Analysts’ views
- Angel One: “The bulls are firmly in control, as the Nifty has gained nearly 4 percent in September. With the continuation of a ‘higher top higher bottom’ pattern, we maintain a positive outlook and anticipate reaching further milestones in the near term. However, it’s worth noting that hourly indicators are currently in overbought territory, suggesting that it may be prudent to focus on buying during intraday dips.”
- ICICI Securities: “We believe positive bias is likely to continue. Incase there is any correction towards 19,900 level than it should be used to create fresh long positions.”
Key levels
- Immediate support: 19,900 to 19,850 levels
- Immediate resistance: 20,160 – 20,200 zone
Outlook
The market is likely to remain volatile in the near term, but the overall trend is positive. Investors should focus on buying quality stocks on dips.
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