Taking Stock: Nifty breaches 23,100 for first time since June 11; Sensex tanks 1,248 pts

Reports coming in for today mention that Indian key market indices ended sharply softer on September 24, amid weak global cues as the US benchmark Treasury yield advanced to its highest level since 2007, while oil price marks surged to $105 a barrel.

After a weak opening, selling intensified through the session, with earnings booking noted across sectors, particularly banks and NBFCs.

The Nifty eased to an intraday low of 23,046.15, breaching its June 11 low of 23,072, while the Sensex additionally came under heavy selling pressure, along with the broader markets.

At close, the Sensex was down 1,247.71 points or 1.67 percent at 73,580.54, and the Nifty was down 383.70 points or 1.64 percent at 23,063.10.

Broader markets additionally ended weak with Nifty midcap index falling 2 percent and smallcap index declining 1.5 percent.

Biggest Nifty losers were Bajaj Finance, HDFC Life, Bajaj Finserv, Axis Bank, Interglobe Aviation, while gainers included Cipla and NTPC.

All the sectoral indices ended in the red with Nifty Private Bank falling 2.2%, Nifty Metal declining 1.9%, Nifty Bank slipping 1.7%, Nifty Infra dropping 1.5%, Nifty Auto declined 1.5% and Nifty Oil & Gas shed 1.3%, Nifty PSU Bank declined 1.3%, Nifty Energy lost 1.2%, and Nifty FMCG declined 1%.

More than 120 stocks touched 52-week high, including Caplin Labs, Carborundum Universal, Shyam Metalics, Laurus Labs, GNFC, Aurobindo Pharma, among others. Click to View More

Among individual stocks, Angel One eased nearly 2.7% after Macquarie initiated a Neutral rating with a target price of ₹285 per share, Avantel surged 6.5% after securing an order worth ₹177.35 crore, while Max Estates advanced 2% after signing a JDA for an approximately 9.76-acre land parcel in Indirapuram, Ghaziabad.

Concord Biotech declined 5% after shareholders approved a bonus offering. Vikran Engineering jumped 9.5% after securing new orders worth approximately ₹153.76 crore from Power Grid Corporation of India.

Shares of L&T Finance, Axis Bank, Turtlemint Fintech, PB Fintech down 4-36% after IRDAI proposed overhauling commission rules to cap payouts.

Shares of Sonaselection India closed 8.5% elevated at Rs 107.42 after listed at Rs 102.21, a premium of around 3% over the firm's IPO price of Rs 99, on the NSE.

National Stock Exchange of India (NSE) shares ended with 1.8% gain at Rs 1817 after listed at Rs 1,800 per share, a premium of 0.84 percent.

The Indian indian rupee extended the losses on second day, falling 22 paise at 95.96 per dollar on Thursday, compared with Wednesday’s close of 95.74. Outlook for September 25

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the key market indices corrected sharply. The Nifty ended 384 points softer, while the Sensex was down by 1248 points. Among sectors, all the major sectoral indices traded in the red, but the Financial Services Index lost the most, shedding over 4.35 percent. Technically, after a gap-down open, the market eased below 23,250/74,300, and post-breakdown, selling pressure intensified.

On daily charts, it has formed a bearish candle and is additionally holding a softer top formation, which indicates further softness from the current marks.

We are of the view that the current market texture is weak, and as long as it is trading below 23,150/73,800, weak sentiment is likely to continue. On the downside, 23,000/73,500 would act as an immediate backing zone. Below this, the market could slip till 22,800-22,850/73,000-72,800. On the elevated side, above 23,150/73,800, the pullback could extend up to 23,250-23,300/74,300-74,500.

Nagaraj Shetti, Senior Technical Research Market observer at HDFC Securities

After showing a minor bounce on Wednesday, Nifty witnessed deep trimmed on Thursday on the back of consultation paper by IRDAI and weak global cues. A long bear candle was formed on the daily chart with gap down opening. The recent swing high of 23489 seems to be a new softer top and the Nifty is now sliding down towards the formation of new softer bottom.

The crucial backing of around 23100 marks (previous opening upside gap of 8th April and swing low of early June) has been tested again on Thursday and no significant recovery was made from the backing. Hence, the market is now placed on the verge of breakdown.

The short-term trend of Nifty has turned down sharply. A decisive breakdown of 23000 is likely to drag Nifty down to 22600 in a quick period. Any bounce back from here could find firm resistance around 23300 marks.