Nifty bulls score century; Triveni Turbine, Solar Industries and Dixon hit fresh all-time high!

Despite the turmoil witnessed among the Asian peers, the Indian benchmark indices kicked off the week on a buoyant note

Market Update at 9:45 AM: Despite the turmoil witnessed among the Asian peers, the Indian benchmark indices kicked off the week on a buoyant note and thereafter, extended their gains. Nifty & Sensex have gained 0.64 per cent and 0.70 per cent, respectively. Sensex is trading above the 59,100 mark while Nifty is hovering around the 17,650 mark.  

Among the sectoral indices, barring Nifty Metal, all other sectoral indices were trading in green. Nifty Pharma and Nifty PSU Bank were the top gainers.   

Among stock-specific action, Triveni Turbine, Finolex Industries, Solar Industries, Trident, and Dixon Technologies have hit a fresh all-time high. 

Nifty ended the last week of September on a negative note as it snapped its recent winning streak and ended lower by 1.80 per cent on a week-on-week basis. Despite the fact that Nifty ended the week on a negative note, the month of September turned out to be a favourable one for the bulls as Nifty ended the month with gains of 2.84 per cent on a month-on-month basis.  

Interestingly, barring Monday, the index closed in the red for four trading sessions, which has been witnessed after nearly two & a half months. Furthermore, for the first time since July last week, the index has breached its important moving average i.e., 20-DMA. I’m sure that after taking these observations into consideration, one may outrightly say that the trend has changed. However, as always, we will dig deeper and give you a more realistic view.    

As we mentioned earlier, the index had breached its 20-DMA but more than that, the curve of 20-DMA is worth noting. Its curve is still in a rising trajectory; hence, it can be a picture-perfect case of shakeout and this is like laying the bait for the weak hands. Secondly, it took almost three trading sessions for the index to gain almost 3.59 per cent from the low of 17,326.10 to the high of 17,947.65 while the index has retraced almost 78.6 per cent of the mentioned upmove. However, what is interesting to see here is that the retracement has taken almost five trading sessions, which signifies a slower pace of retracement. Thirdly, the volatility gauge India VIX plummeted more than 6 per cent on Friday and slipped below the 18-mark, which is heartening for the bulls. Also, generally, when there is panic in the market, the broader markets bleed; however, in the last couple of trading sessions, we saw outperformance from the broader markets. In addition to this, the index witnessed a shallow correction limited to the range of 3-4 per cent since April 2021, and hence, pretty much on the expected lines, the index has corrected only 2.76 per cent from the recent tops.   

Considering the above factors, we believe that the index might witness a rebound from the current levels.