Investors will closely watch the GST Council meeting on rate rationalization, scheduled for Wednesday and Thursday.
Indian markets closed higher on Wednesday, driven by strong buying in metal, public sector banks, and pharmaceutical stocks, marking the second gain for benchmark indices in five sessions.
The Nifty 50 ended 135.45 points higher at 24,715, while the Sensex closed up 409.83 points at 80,567.71. Broader markets outperformed the benchmark indices, with the Nifty Midcap gaining 0.54% and the Nifty Smallcap index rising 0.9%.
Investors will be closely watching the GST Council meeting on rate rationalization scheduled for Wednesday and Thursday. Retail investor sentiment surrounding the Nifty 50 remained ‘neutral’ on Stocktwits at market close.
Gainers and Losers
The Nifty Metal index extended gains to a third session before closing 3.11% higher on Wednesday. Steel stocks were the biggest gainers on the index with Tata Steel (+5.96%), Jindal Steel (+5.47%), and Steel Authority of India (+5.26%), making up the top three.
Lupin shares closed 3.3% higher after the company received a USFDA approval for its Risperidone injectable to treat schizophrenia and bipolar I disorder. Shares of manganese ore miner MOIL ended 3.8% higher, after the company reported its best-ever August production of 1.45 lakh tonnes, an increase of 17% over last year.
Man Industries surged over 6.5% on Wednesday after bagging an international order for coated pipes worth ₹1,700 crore. Yes Bank closed 4% higher after Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) secured approvals from Indian regulators to buy up to 24.99% in the private bank.
Among decliners, Indus Tower ended 1.5% lower after its foray into the African market sparked concerns over dividend payout. The Nifty IT index fell 0.74%, with Infosys (-1.25%), Wipro (-0.55%), and TCS (-0.37%) leading the drop.
Analysts Takes
Nifty is forming a topping Head & Shoulder pattern, which will be confirmed if the price breaks below the neckline, said SEBI-registered analyst Ashish Kyal.
Neo wave analysis and time cycles are also aligning to support this setup, Kyal added.
Nifty’s weekly chart shows a sideways bias with the Relative Strength Index (RSI) at 52, noted SEBI RA Sunil Kotak. Notably, Nifty has respected this level even in the toughest phases over the past four years, bouncing back from it three times, he said
Meanwhile, SEBI RA Sameer Pande noted that on the monthly charts, PPL Pharma stock had taken support around the ₹170-₹180 levels and was showing positive reversal signs on the supertrend. The stock has also crossed the 20-day Exponential Moving Average (EMA). On its daily charts, PPL Pharma stock was showing a breakout on the supertrend, as well as a breakout on the 20-day EMA. Additionally, its RSI rose from 40 to 58 in a day, supporting the bullish sentiment.
SEBI RA Deepak Pal noted that ICICI Bank has been under pressure for the past three weeks, with the RSI hovering around 35, indicating an oversold territory. The Moving Average Convergence Divergence (MACD) and the Parabolic Stop and Reverse (SAR) indicators remain in bearish mode, he added.
In the near term, Pal pegged support at ₹1,375, with resistance at ₹1,450 to ₹1,455.
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