Sensex, Nifty take a breather after hitting fresh highs

Benchmark Indices ended in red after hitting record highs with Nifty 50 closing (-)0.33 percent and Sensex closing (-)0.37 percent. Nifty realty gained (+)5.57 percent today while Nifty metal was down by (-) 1.79 percent.

Some buying interest is seen in selected capital goods, and power stocks while some selling pressure is seen in metal and IT stocks.

IEX surged 11 percent as the company achieved all-time high volume growth of 74 percent YoY. GST revenue for Aug, 2021 is 1,12,020 crore (+30 percent YoY). Tata Motors sold a total of 1022 units of electric cars last month (234 percent YoY) and the company expects its EV sales to grow significantly in the coming months; stock was among the top gainers of Nifty 50 today.

M&M was the top loser among the Sensex constituents, shedding 2.89 per cent, followed by Tata Steel, Bajaj Finserv, TCS, HDFC, Infosys and HCL Tech.

On the other hand, Asian Paints, Nestle India, Axis Bank, Dr Reddy's, Titan and L&T were among the gainers, climbing up to 3.20 per cent

Mohit Nigam, HeadPMS, Hem Securities, said, "On the technical front; 16,900 and 17,250 are immediate support and resistance in Nifty 50."

"Nifty saw some profit booking after making a new all-time high of 17225 today. It closed at 17076 down by 55 points. The trend in Nifty remains bullish as long as it trades above 16900, below which long traders should be cautious. Nifty has support at 17050 and 16980 levels. If Nifty manages to close above today's high we can see levels of 17300 and 17320 in the coming sessions," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, markets witnessed profit-taking as rampaging bulls took a break after three days of rally. "Benchmark Nifty has formed a bearish candle which indicates that profit booking at higher levels could continue in the near future. However, the mediumterm trend remains bullish. As the rally has been overstretched, markets may witness narrow range activity. For the trend following traders, the 16980-16950 level would be the key level to watch out for. On the flip side, 17,150-17,200 could act as an intraday resistance level. In case of intraday correction, contra traders can take a long bet near the support level of 16,950 with a strict 35 points stop loss."

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said the Nifty continues to trade with a positive bias for the medium term and is expected to test 18000 and above. "Trend support for the index is seen at 16760 levels. In the short term since the movement has been aggressive, some corrections cannot be ruled out. We believe buying on dips is advisable in the broader markets. We expect positive bias in Realty and Auto stocks while BFSI space remains in momentum.”