Markets tested its long-term support on Wednesday after Sensex ended at a 200-day exponential moving average which was placed at 56596 while midcap and small-cap sectors outperformed the key benchmarks. The selling was more concentrated in Sensex 30 stocks after Nifty breached the psychological mark of 17000 which triggered margin calls in the last hour of trade.
After yesterday’s decline, the spread of the Nifty 50- Nifty 500 Index has landed the support leg of ‘Bullish Flag’ and this would mean the next leg of the up move will be concentrated in high free float-based Nifty 50 stocks.
In fact, the spread of the Nifty 50 – Nifty 500 Index was into a consolidation zone since Oct 2021 which was mainly responsible for range-bound trade in Nifty 50, but soon bullish impetus would take its course. For reversal confirmation, Sensex needs to close above 57634.
Spread Nifty 50- NIFTY 500 Index and Spread of India 10 Yr- US 10 yr yield
Stocks to watch
Positive Read through
- India Appoints New Defense Chief in Push to Modernize Military- Defence stocks in focus.
- BHEL Gets NTPC order for Odisha Thermal Power project.
- Edelweiss Financial Raises Edelweiss Tokio Life stake to 75.1 %.
- FSN E-Commerce Ventures Meeting on Oct. 3 to consider issuance of Free Shares to shareholders.
- S H Kelkar Says unit Keva Europe BV acquired a 19 % stake in Provier Beheer BV, raising holding to 81 %; the balance will be acquired in 2 yrs.
- Titan Co- Market Share to Pass 40 % in 5 Years say reports.
- Godrej Properties acquires seven-acre land in Bengaluru’s Indiranagar extension.
- Larsen & Toubro subsidiary inks pact to transfer 15 acres of land to Brookfield.
- Auto dealers to clock their fastest revenue growth in three fiscals, says Crisil.
- Lupin launches generic Suprep Bowel Prep Kit in the United States.
- Exide’s Li-ion cell unit is likely to be ready in 2.5 yrs.
- Adani Group stocks- Reports say Co said to increase its free float.
Negative Read through
- Adani Green- Total SE says a 20 % stake in Co is a source of potential cash.
- Shree Cement will be excluded from Nifty tomorrow, Sept 30.
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