Stock-specific activity may continue

The benchmark indices traded in a range with high volatility. NSE Nifty traded in a 274.55 points range and finally closed with just 35.90 points or 0.18 per cent decline.

It gained by 384.50 points or two per cent in the September month. BSE Sensex was down by 0.27 per cent. The broader market indices, Nifty Mid-cap and Small-cap indices, outperformed by 0.99 per cent and 2.18 per cent gains. On the sectoral front, the Nifty Realty and Pharma indices were the top gainers with 2.52 per cent and 2.35 per cent, respectively.

The Nifty IT and Media indices are down by 3.41 per cent and 1.04 per cent, respectively. The FIIs sold Rs26,692.16 crore, and the DIIs bought Rs20,312.65 crore worth of equities in September month. The Advance-Decline ratio is almost neutral at 0.93. The Nifty broke key support last week. It formed a long-legged small body candle on a weekly chart. After testing moved below the 10-week average and 50DMA, the index closed below last week’s low. In last week’s columns, we mentioned the mean reversion and impact of the low VIX regime.

(The author is Chief Mentor, Indus School of Technical Analysis, Financial Journalist, Technical Analyst, Trainer and Family Fund Manager)