Benchmark indices falter on weak Asian market cues

Benchmark indices ended the day’s session on a negative note and buying interest was witnessed in media stocks with Nifty Media closing 1.34 percent up. Nifty 50 ended 0.08 percent down. The Sensex closed 127 points, or 0.22 percent, lower at 58,177.76 while the Nifty ended the day at 17,355.30, down 14 points, or 0.08 percent.

Reliance Industries was the top loser in the Sensex pack, shedding over 2 per cent, followed by ICICI Bank, HUL, HDFC Bank, M&M, Ultra Cement, IndusInd Bank and Tech Mahindra. On the other hand, TCS, Bharti Airtel, Bajaj Finserv, Tata Steel, Maruti and Kotak Bank were among the gainers.

"Nifty bounced back from its support zone of 17,250-17,300 after making a low of 17,269. Nifty closed at 17350 down by 18 points since last close. Nifty has been trading in a small range since the last five days and any breakout above 17,450 with above average volumes may take Nifty to 17,550 levels," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities

Investors are now eyeing retail inflation data, with a Reuters poll of analysts projecting that the reading held steady in August and stayed within the central bank’s comfort zone. Vedanta Resources reduced net debt by $300 million in the first half of FY22. Reliance Industries drove losses on the benchmark, falling over 2 percent after its “ultra-affordable”

smartphone — developed jointly by Reliance’s telecom arm and Google — was delayed to November. In the 50-share pack Nifty, Coal India was the biggest gainer, up 4.00 percent. Hindalco, BPCL and TCS were among other gainers. Reliance was the top loser in the pack, down 2.23 per cent. ICICI Bank, HUL and HDFC Bank were other losers in the pack.

Sachin Gupta, AVP-Research, Choice Broking said, "Technically, the Nifty index is in a bullish trend and continuously hovering above 17,250 marks, which acts as immediate support for the index. On the daily charts, the index has been consolidating between the ranges of 17,400-17,250 levels; any breakout above 17,400 will accelerate the rally towards the new milestone. All the important key indicators are supporting the upward rally in the index. At present, the Nifty has resistance around 17,450 levels while on the downside, 17,250 may act as support for the index.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said, "Markets witnessed profit-taking in select frontline stocks as weakness in other Asian markets weighed on Indian gauges. Benchmark Nifty moved in a range of 100 points and took support near 17,270 after falling sharply in early trades. Over the last four days, the index has been hovering between 17,250 to 17,435 levels. At the same time, the Nifty is consistently taking support at 17,250.”