Sensex, Nifty end expiry session in red, fall for third day straight; D-St may consolidate further

Bajaj Finserv was the top Sensex gainer, jumping 2.19%, followed by Bajaj Finance, NTPC, and Sun Pharma.
(Image: REUTERS)

Domestic headline indices ended with losses for the third consecutive trading session. S&P BSE Sensex, danced between gains and losses for most of the day only to end 286 points or 0.48% lower at 59,126. Nifty 50 gave up the 17,700 mark at the end of the September F&O expiry session, closing at 17,618. Bajaj Finserv was the top Sensex gainer, jumping 2.19%, followed by Bajaj Finance, NTPC, and Sun Pharma. Powergrid was the worst-performing Sensex constituent, falling 3% on closing.  Asian Paints, Axis Bank, and Kotak Mahindra Bank followed. Chartists suggest Nifty could now face resistance at 17,700 but believe the medium-term structure is still positive. 

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Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities –

“Investors booked profit on the expiry day due to lack of fresh triggers and tepid global cues. Benchmark Nifty is hovering within the range of 17600-17780 and on intraday charts it has formed a lower top formation which is largely negative. However, the medium-term structure is still positive. The intraday trading setup suggests 17700 could act as a strong resistance level, and below the same the correction could continue up to 17500-17450 levels. On the flip side, beyond 17700 the immediate hurdle would be the 17750 level. On the contrary, any revival could lift the index up to 17800.”

Rohit Singre, Senior Technical Analyst at LKP Securities-

“Index closed the day at 17618 with a loss of half a percent and formed a bearish candle on daily chart. One more expiry ended on a positive note with gains of 6 percent. Going forwards immediate support is coming near 17540-17440 zone if managed to hold above mentioned supports area one can expect a bounce & we may see prices to move again towards immediate hurdle zone of 17700-17800 zone, the overall structure looks consolidating and on broader term we may see index to consolidate in the range of 17300-18000 mark & either side breakout will decide the final direction.”

Manish Shah, Founder, Niftytrigger –

“On the expiry of September 2021 monthly derivative expiry, Nifty closed the day at the lows and there was no bounce off the lows. Nifty is barely latching to the support at 17590-17530. A break below the support zone will take Nifty towards 17350-17300. The support at 17590-17530 is an important support zone as there is a gap area as well as a rising moving average and a trendline coming up from July 2021 lows. For Nifty to trade higher Nifty needs to break above 17780-17800. It’s time to be cautious as of now.  Though the longer-term trend in the market is intact a short term down-swing could be in the making. It is wait and watch mode for a day or two.”

Palak Kothari, Research Associate, Choice Broking –

“Technically, the index has formed a bearish candle on a daily time frame though the index is taking support from 21-DMA. Closing below the same can show a correction in the next trading sessions. Furthermore, the index has been trading below 21 & 50 HMA, which suggests some correction can be seen in the upcoming session. Momentum indicator MACD is also showing negative crossover, which adds weakness in the counter. At present, the Nifty has immediate support at 17500 while resistance comes at 17900 levels,”

Vinod Nair, Head of Research at Geojit Financial Services –

“Indian market opened on a flat note and slipped in the later half tracking weak global cues and fall in heavyweights. Worries over the US debt ceiling crisis and uptick in bond yield triggered further consolidation. The domestic market also got vigilant ahead the release of August’s core sector output data.”