Sensex Gain 314 Points, Nifty at 24,868; Nifty Prediction for Tomorrow

Markets End Higher on September 9 Amid IT Rally; Key Levels to Watch for September 10

Indian equity markets closed on a positive note on Monday, September 9, driven by strong buying in IT stocks and favorable global cues.

Investors appeared optimistic following Infosys’ announcement of a potential share buyback, lifting sentiment across the information technology sector.

The Sensex rose by 314.02 points or 0.39% to settle at 81,101.32, while the broader Nifty 50 advanced 95.45 points or 0.39%, ending the session at 24,868.60.

Both indices continued their upward trajectory and are now approaching critical resistance levels, suggesting an important juncture for the short-term trend.

Market Breadth and Broader Indices

Despite the benchmark indices ending in the green, the market breadth was slightly negative, hinting at stock-specific movements rather than a broad-based rally:

• 1,893 stocks advanced
• 2,028 stocks declined
• 160 stocks remained unchanged

Among the broader market indices, the BSE Midcap and BSE Smallcap indices gained modestly by 0.2% each.

This indicates selective interest in mid- and small-cap stocks, possibly driven by investors repositioning their portfolios ahead of upcoming macroeconomic data and global central bank announcements.

Top Performers and Laggards

Nifty Gainers

The IT sector was clearly the star of the day. The top gainers on the Nifty 50 included:

• Infosys
• Dr. Reddy’s Laboratories
• Wipro
• Tech Mahindra
• Adani Ports

Infosys was the top contributor to the Nifty’s gain, surging in response to its board’s announcement that it would consider a share buyback proposal on September 11.

This news not only drove Infosys higher but also lifted the sentiment across other IT majors.

Nifty Losers

On the other hand, the following stocks underperformed:

• Eicher Motors
• Trent
• Jio Financial Services
• Tata Motors
• Titan Company

Auto stocks, in particular, came under pressure due to profit booking, following a strong run-up in recent sessions. Investors opted to lock in gains after optimism stemming from recent GST reform discussions.

Sectoral Performance

The performance across sectors was mixed, with notable outperformance in technology and healthcare:

• IT Index: +2.8%
• Pharma: +0.5%
• FMCG: +0.5%
• Oil & Gas: -0.3%
• Realty: -0.3%
• Auto: Mixed to negative

The IT sector’s rally was fueled almost entirely by Infosys’ buyback buzz, which revived confidence in a sector that had previously seen muted performance due to global slowdown concerns and margin pressure from rising costs.

Expert Views: What Drove the Market Higher?

Hariprasad K, SEBI-registered Research Analyst & Founder, Livelong Wealth:

“The Indian stock market saw renewed buying interest, largely driven by IT heavyweights. Infosys’ announcement regarding a share buyback acted as a strong catalyst, pulling the entire sector up. The Nifty IT index closed nearly 3% higher, reflecting renewed confidence in the sector after a prolonged phase of underperformance.”

Hariprasad noted that share buybacks are typically perceived as a sign of confidence from management about the company’s prospects, and this development helped in boosting the overall risk appetite.

Vinod Nair, Head of Research, Geojit Financial Services:

“The markets traded with a positive bias today, supported by stable global cues and sector-specific news flows. Despite prevailing uncertainties globally, domestic factors like the possibility of an interest rate cut by the US Federal Reserve and healthy macroeconomic indicators are keeping investor sentiment optimistic in the short term.”

Nair added that while IT stocks saw a sharp bounce, the auto sector faced profit-taking pressure, especially after recent gains on the back of GST rate cut discussions and improving retail sales data.

Technical Analysis: Crucial Levels Ahead

According to Nilesh Jain, Technical & Derivatives Research Head at Centrum Broking, the Nifty 50 is now approaching a crucial resistance zone:

“Momentum indicators such as the RSI have crossed the 50 mark, which typically signals a positive short-term trend. However, the Nifty is currently hovering near its psychological resistance at 25,000. A decisive breakout above this level, accompanied by strong volumes, could pave the way for a fresh leg of rally.”

Jain also pointed out that the 21-Day Moving Average (DMA), currently placed at 24,720, is acting as a critical support level.

A sustained hold above this mark would strengthen bullish momentum, while any breach below could lead to a short-term pullback.

Market Prediction for September 10 and Beyond

As investors look ahead to Tuesday’s session (September 10), markets are expected to remain range-bound with a slightly positive bias, driven by several key factors:

1. Infosys Buyback Decision (September 11):

All eyes will be on Infosys’ board meeting scheduled for Wednesday, where a decision on the buyback is expected. The details — such as buyback size, premium, and method — will determine whether the current rally in IT stocks has further legs.

2. US Federal Reserve Rate Cut Expectations:

Anticipation of a rate cut by the US Fed continues to support global risk assets, including Indian equities. A dovish stance could trigger further foreign inflows, particularly into large-cap sectors like banking and IT.

3. Domestic Macroeconomic Indicators:

India’s recent macroeconomic performance, including robust GDP growth, stable inflation, and improving GST collections, has laid a solid foundation for continued equity market strength — at least in the short term.

4. Global Trade Developments:

Ongoing global trade negotiations and geopolitical tensions remain potential headwinds. Any negative surprise on this front could increase volatility.

Key Technical Levels to Watch (September 10):

Final Thoughts

The Indian stock market closed higher on September 9, with a strong up-move in IT stocks leading the rally.

Infosys’ share buyback announcement served as the key trigger, not just for its own stock but for the entire tech sector.

While the broader market showed mixed cues, technical indicators suggest that the momentum remains positive in the near term.

However, with Nifty now testing the 25,000 resistance zone, traders should remain cautious. A breakout above this level could mark the start of a new uptrend, while failure to cross convincingly may lead to consolidation or mild correction.

As always, investors are advised to monitor global cues, key domestic developments, and corporate news closely before making trading or investment decisions.