Anand James of Geojit Investments notes that the Closing Auction Session (CAS) has successfully lowered late-day price swings. For September, the firm suggests shifting from passive investing to tactical picks in large mid-cap stocks, while flagging key support levels for broader market indices.
Anand James, Chief Market Strategist at Geojit Investments, has observed that the recently introduced Closing Auction Session (CAS) is changing how the stock market behaves at the end of the trading day. Since the session was implemented in August 2026, the wild price swings often seen between 3:15 PM and 3:30 PM have become less frequent.
Impact on Market Analysis
This change is significant for investors and traders because it reduces artificial noise in price data. Previously, the final minutes of trading could show extreme highs or lows that did not necessarily reflect real buying or selling momentum. Analysts now suggest that looking at price trends recorded before 3:00 PM provides a more accurate picture of how a stock or index is actually performing. By ignoring the temporary volatility caused by the final auction, market participants can better understand the underlying trend.
Strategy for September
For the remainder of September, Geojit Investments advises moving away from a passive, buy-and-hold strategy toward a more tactical approach. The firm suggests focusing on large mid-cap stocks. These companies are viewed as offering a more stable profile while the overall market works to establish a base for growth.
In terms of sector performance, technical indicators point to strength in the Capital Markets and Tourism sectors. The Nifty Capital Markets Index is showing signs of a potential upward move, while the Tourism sector is seeing positive trends. Specific names identified in these sectors by the firm include Indian Hotels, IndiGo, GMR Airports, and IRCTC, which are showing early signs of reversal patterns.
Monitorable Levels
Investors should pay attention to key technical levels for broader indices, as these often serve as indicators of market health. The Nifty Smallcap100 is currently testing a resistance zone between 20,800 and 21,000. For the index to maintain its current bullish trend, it needs to break above this range. It also has a critical support floor at 19,800 to 19,900 that investors may watch closely.
Similarly, the Nifty Midcap100 shows a stable structure, but it also has a clear safety line. The index has a critical support level at 62,350. As long as it trades above this mark, the current trend remains intact. However, if the index falls below this level, it could potentially trigger a correction toward 61,500. Investors may track these levels throughout the month to gauge whether the market strength is sustainable or if profit booking is likely to increase.