Sensex Down 7.25 Points, Nifty at 24,741; Nifty Prediction for Monday

Stock Market Ends Flat on September 5: Will Nifty Break Out on September 8?

Indian equity benchmarks ended a choppy trading session on September 5, Thursday, with marginal changes in the headline indices.

Despite volatile intraday moves, broader market sentiment remained resilient, supported by selective buying across sectors.

At the close, the BSE Sensex dipped slightly by 7.25 points, or 0.01%, to settle at 80,710.76, while the NSE Nifty 50 inched up by 6.70 points, or 0.03%, to end at 24,741.00.

The subdued move indicates a temporary pause as investors weigh near-term domestic and global triggers.

Market Breadth and Volume Analysis

Despite the flat close, the market breadth remained slightly positive. On the BSE, 2,081 stocks advanced, 1,828 declined, and 152 remained unchanged, suggesting a mixed yet constructive undertone in the broader market.

Trading volumes remained modest, as investors adopted a wait-and-watch approach ahead of upcoming U.S. macroeconomic data and global central bank commentary.

While large-cap stocks saw range-bound movement, mid- and small-cap counters continued to attract interest, particularly in segments offering value and earnings growth visibility.

Sectoral Trends: Auto Outperforms, IT and FMCG Under Pressure

Sector-wise, the market witnessed a mixed trend:

• ✅ Auto stocks continued their strong upward momentum, with the Nifty Auto index gaining 1.3%, supported by hopes of robust festive season demand and positive monthly sales data. Market participants expect automobile companies to benefit from rural demand recovery and easing input costs.
• ✅ Media and Metal indices also posted modest gains of around 0.5% each, driven by improving global sentiment and short covering in select stocks.
• ❌ On the flip side, Realty, FMCG, and IT indices were under pressure, each losing nearly 1%. The decline in IT was in line with weakness seen in global tech stocks, amid renewed concerns about U.S. growth and higher-for-longer interest rates.
• 🏛️ BSE MidCap and SmallCap indices ended largely flat, though intraday activity was strong, indicating healthy investor appetite outside the large-cap space.

Top Stock Movers:

Nifty Gainers:

• Mahindra & Mahindra (M&M) – Supported by strong SUV sales and rural demand expectations.
• Eicher Motors – Gained on sustained investor interest in premium motorcycles and exports.
• Maruti Suzuki – Benefited from upbeat passenger vehicle sales data.
• Dr. Reddy’s Laboratories – Rose on expectations of strong export sales in the U.S. market.
• Power Grid Corporation – Supported by defensive buying amid market volatility.

Nifty Losers:

• ITC – Slipped due to profit booking post a recent rally and weakness in FMCG sentiment.
• TCS & HCL Technologies – Both declined amid concerns over global tech demand and currency pressures.
• Cipla – Declined on muted expectations for upcoming quarterly results.

What’s Next: Market Outlook for September 8

While Thursday’s session lacked major directional movement, analysts remain cautiously optimistic about the short-term trend—provided the Nifty can break above a key technical resistance.

Technical View: Breakout on the Horizon?

According to Nilesh Jain, Technical and Derivatives Analyst at Centrum Broking, the Nifty has shown resilience by closing above its 21-day moving average, which currently stands around 24,700. This level has acted as a crucial short-term support.

However, Jain points out that the index is now confronting stiff resistance near its 50-day moving average (24,980).

This zone also coincides with the upper boundary of a symmetrical triangle pattern forming on the charts.

“A decisive breakout above 25,000 is needed to confirm a bullish trend,” says Jain. “If that happens, the Nifty could swiftly climb to 25,300, and potentially 25,500 in the near term.”

Until then, he advises traders to remain cautious and wait for confirmation before taking aggressive long positions.

Fundamental Perspective: What’s Driving Sentiment?

Vinod Nair, Head of Research at Geojit Financial Services, observes that while benchmark indices closed flat, underlying sentiment has improved, especially in the broader markets.

“We saw recovery from intraday lows, suggesting that buying interest is returning at support levels,” Nair notes. “Investors are looking beyond large-caps, scouting for value and growth in mid and small-cap names.”

The auto sector continues to be a bright spot, driven by demand optimism and favorable macro trends. Nair expects further upside in consumer discretionary stocks as festive demand gains momentum.

Moreover, the steady participation of domestic institutional investors (DIIs) and retail investors remains a cushion against global volatility, particularly at lower levels.

Global Cues: All Eyes on U.S. Jobs Data and Fed Policy

Globally, investors are watching closely for the release of the U.S. non-farm payroll report, which could offer vital clues about the health of the world’s largest economy and influence future rate decisions by the U.S. Federal Reserve.

Market participants are hoping for a slight moderation in job growth and wage inflation—conditions that could strengthen the case for interest rate cuts in early 2026.

Meanwhile, global equity markets—especially in the U.S. and Asia—showed modest gains on Thursday, providing a supportive backdrop for Indian equities.

A continued rally in U.S. tech stocks, along with easing bond yields, may further bolster global risk appetite in the coming days.

Investment Strategy: Play the Range, Watch Key Levels

In the absence of a clear breakout or breakdown, most analysts recommend a range-bound trading approach, emphasizing key support and resistance levels.

• Support zone: 24,500 – 24,600
• Resistance zone: 25,000 – 25,050

“In such a scenario, a buy-on-dips and sell-on-rise strategy can work well,” says Jain. “Investors should focus on stock-specific action and avoid chasing the index until a directional breakout is confirmed.”

Final Thoughts: Balanced Sentiment, Cautious Optimism

The Indian equity market appears to be in a consolidation phase, digesting recent gains and awaiting fresh triggers.

With technical indicators signaling indecisiveness and global cues remaining mixed, traders and investors should maintain a balanced stance.

The near-term outlook will depend on whether the Nifty can decisively cross the 25,000 threshold. Until then, market participants are likely to continue focusing on sector rotation, mid-cap momentum, and global macroeconomic developments.

Stay tuned for more daily updates, expert insights, and actionable strategies as we track the markets ahead of the September 8 session.