Indian stocks advanced in Monday’s trade, 21 September, as sustained losses prompted value buying in select counters, while oil-sensitive stocks recovered following a drop in crude prices, although underlying geopolitical tensions capped the upside
Although the frontline indices opened the session with modest losses, they quickly gained momentum as buying emerged in heavyweights such as HDFC Bank, ICICI Bank, ONGC, and Reliance Industries, leading to strong gains. The positive close brought much-needed optimism to Dalal Street as the markets remained lower for six consecutive weeks.
Indian stock market today
The Nifty closed 0.29% higher at 23,414, while the Sensex rallied 0.81% to 74,894. The broader markets, however, remained mixed, with the Nifty Midcap 100 index falling 0.23%, while the Nifty Smallcap 100 index remained largely unchanged from Friday’s close.
Sectoral performance was mixed, with pharma, realty, FMCG, consumer durables, and oil and gas stocks closing with gains ranging from 0.53% to 1.27%. Among the losers, metal and PSU bank stocks were the top laggards.
Meanwhile, losses in Tata Group stocks deepened during the session, with Tata Capital, Tata Power, Tata Investment Corporation, and other group stocks closing in the red. The decline came as the dispute between Tata Trusts and Tata Sons over the leadership and future structure of the conglomerate escalated, with investors closely watching the possibility of legal proceedings and renewed uncertainty around Tata Sons’ proposed listing.
Turning to the commodity market, crude oil prices fell more than 2% at their day’s low as vessel traffic and energy flows through the Strait of Hormuz reportedly picked up. However, the strait remained largely closed, while uncertainty persisted over US-Iran tensions, AP reported.
Tensions between Saudi Arabia and Iran-backed Houthis, along with Saudi Arabia’s closure of a key oil pipeline, also continued to add pressure to global oil supplies. Brent crude, the international benchmark, fell 2.1% to $101.65 per barrel. It was trading at roughly $72 a barrel in late February, before the start of the war in Iran.
Could Asian markets see further gains after Trump-Xi talks?
All major Asian markets closed higher ahead of the expected meeting between US President Donald Trump and Chinese leader Xi Jinping this week in Washington, which could cover trade, artificial intelligence and geopolitics.
Taiwan’s Taiex was up 1.1%, with its leading AI chipmaker, Taiwan Semiconductor Manufacturing Co., or TSMC, adding 0.8%. Hong Kong’s Hang Seng advanced 0.9% to 24,975.58, while the Shanghai Composite Index gained 1% to 3,949.91.
Markets in Japan were closed on Monday and will remain shut through Wednesday for holidays. Australia’s S&P/ASX 200 was almost unchanged at 8,731.90.
Vipin Kumar, AVP-Research at Globe Capital Market, said the KOSPI index is gradually heading toward the upper-band resistance of a month-long congestion range around the 7,220-spot level. A decisive close above 7,220 would be a positive development that could lead the index toward 7,700–7,800 spot levels in the near term.
On the Dow Jones Industrial Average, Kumar said the index continues to hover around the price support zone of 51,100–51,300 spot levels. Moving forward, a decisive fall below 51,100 would be a negative development that could drag the index toward the 49,800–50,000 spot levels in the near term.
Conversely, sustained trading above the 52,200-spot level could push it back toward 53,300–53,800 spot levels.
Can Nifty sustain its recovery above 23,300?
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said that the Nifty continues to hold above 23,300, keeping the short-term recovery structure intact. “The index now faces resistance at 23,500–23,600, while 23,300 and 23,200 remain the immediate support levels. Bank Nifty is holding above 56,000, with 56,500–56,800 emerging as the next resistance zone,” he added.
Vipin Kumar said the Nifty index has gradually reached the price resistance zone around the 23,450–23,600 spot levels. The short-term chart structure remains bearish as long as the index trades below the 23,600 spot level on a closing basis. Downside support is still located around the 23,000–23,100 spot levels; hence, we suggest that traders adopt or maintain a stock-specific trading approach for the time being.
Ponmudi R, CEO of Enrich Money, said, “The Nifty 50 closed on a relatively steady note after trading in a narrow range through the session. The index recovered from lower levels but remained below the key 23,500 mark, keeping the near-term technical structure cautious. The 23,500–23,600 zone remains the immediate resistance band, while a sustained breakout above 23,600 would be required to strengthen the recovery. On the downside, the 23,200–23,300 zone remains the key support area.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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