Key equity indices the Sensex and the Nifty ended flat on September 2 ahead of the US jobs data even as there is almost a certainty that the US Fed will hike rates aggressively in its September meet.
Strong US jobs data will bolster the case for sharp rate hikes. As the buzz of a recession is strong, strong US jobs data will give comfort to the US Fed to raise rates without worrying much about the economy.
Sensex closed 37 points higher at 58,803.33 while the Nifty50 closed 3 points lower at 17,539.45. Second rung indices of mid and smallcaps ended mixed. While the BSE Midcap index fell 0.35%, the Smallcap index rose mildly by 0.04%.
Shares of ITC, HDFC and Larsen & Toubro ended as the top gainers in the Sensex index while those of Maruti Suzuki, Reliance Industries and IndusInd Bank ended as top laggards.
Among the sectoral indices, BSE Capital Goods rose more than a percent while oil & gas, metal and energy indices fell about a percent each.
Crude oil prices saw an uptick but remained below the $95 a barrel mark. The Indian rupee fell 25 paise to close at 79.80 per dollar.
"The market struggled for a firm direction today as global markets were largely under selling pressure ahead of the release of US job data, which could provide insight into upcoming Fed actions," said Vinod Nair, Head of Research at Geojit Financial Services.
"Oil prices rose ahead of the OPEC+ meeting on the expectation of a reduction in output, despite the fact that weak global growth prospects remain a concern. A surging dollar index and rising US bond yields could be reflected in the elevated volatility of the domestic market in the near term," Nair said.
The Sensex and the Nifty ended flat for the week, with a negative bias. However, BSE Midcap and Smallcap indices rose more than a percent each.
Technicals
The Nifty has been trading in a range, forming a good base of around 17,450. As Palak Kothari, Senior Technical Analyst at Choice broking pointed out, the index has taken support from 21-HMA as well as the lower band of Bollinger in an hourly chart which suggests strength to the upside.
"On the OI (open interest) data, the highest call open interest was witnessed at 17,800 strike, followed by 17,700, while on the put side, maximum open interest was seen at 17,300 strike. Momentum indicator stochastic was bounced from the oversold zone and traded with a positive crossover on a daily time frame which suggests strength in the counter," Kothari said.
"The support for nifty has shifted around 17,450 levels while on the upside 17,770 may act as an immediate hurdle," she said.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
