Trade Setup For Sept. 20: Nifty Consolidation Likely At 25,300–25,500 After Fed Action

The NSE Nifty 50, which settled 0.15% higher in the trading session after the US Federal Reserve's rate-cut announcement, is likely to consolidate in the range of 25,300–25,500, according to analysts.

The index has formed a shooting-star candlestick pattern at record levels with a probable bearish divergence in the relative strength index, according to Aditya Gaggar, director of Progressive Share Brokers. "The consolidation range of the index is 25,300–25,500 and a convincing move on either side will decide the trend."

In its first rate cut decision in over four years, the Fed decided to slash the benchmark lending rates by 50 basis points.

The Reserve Bank of India may follow the Fed's lead but not immediately, according to Pradeep Gupta, vice chairperson of Anand Rathi Group. "Improved global sentiment could drive a rally in Indian markets as emerging economies like India become more attractive to investors."

In the longer term, the direction of the Indian stock market will depend largely on global economic conditions, particularly the health of the US economy, he said.

If the US achieves a soft landing and avoids a recession, Indian equities may experience gradual growth. However, if the global outlook deteriorates, the Indian markets, especially the mid- and small-cap segments, can face increased volatility, Gupta said.

The larger texture of the market is still on the positive side, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

However, a fresh uptrend rally is possible only after the dismissal of the 25,500 level by the Nifty and 83,500 by the S&P BSE Sensex. Beyond this, the indices can retest the levels of 25,600 and 83,770, respectively, Chouhan said.

• IIFL Finance: The RBI lifted its restrictions imposed in March on gold loans businesses. The company can now resume sanctioning, disbursal, assignment, securitisation, and sale of gold loans.

• NTPC: The company received investment approval for Darlipali project at an estimated cost of Rs 11,131 crore and received investment approval for Sipat project at an estimated cost of Rs 9,791 crore.

• Reliance Infra: The company approved raising up to Rs 3,014 crore via preferential issue of shares. It will also seek shareholder's nod to raise another Rs 3,000 crore.

• IDFC Bank: The bank received RBI approval for re-appointment of V Vaidyanathan as MD and CEO for three years.

• Infosys: The company extended collaboration with Posti for operational efficiency solutions via Infosys Topaz. The company has agreed to invest Rs 17 crore in spacetech startup GalaxEye.

• Tata Power: The company sought arbitration in dispute with Adaro International over coal supply. Adaro made a claim of $106 million, and Tata Power made a counterclaim of $230 million.

• Power Grid Corp.: The company was declared a successful bidder for the Khavda transmission project in Gujarat.

• EMS: The company approved raising up to Rs 400 crore via QIP.

• Jyothy Labs: The company acquired laundry service brand Quiclo from Smartwash Solutions along with its software and customer database for Rs 70 lakh to strengthen its laundry service business and customer base in Hyderabad.

• Sandur Manganese: The Karnataka pollution board granted consent of operation for the company’s manganese and iron ore mines for the enhancement of manganese ore production from current 0.43 MTPA to 0.55 MTPA.

• AU Small Finance Bank: The bank partnered with Niva Bupa to offer health insurance products.

• HUDCO: The company said it has the potential for extending loan assistance in the range of Rs 75,000 crore to Rs 1 lakh crore under Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) scheme guidelines.

• The Phoenix Mills: The company’s unit Casper Realty was declared the highest bidder for two city-centric plots in Mohali, Punjab.

• Abbott India: The company is in a non-exclusive agreement with Takeda Pharma to market and distribute Vonoprazan drugs in India.

• Geojit Financial: The company approved rights issue at Rs 50 per share to issue 1 share for every 6 held by eligible holders.

• Thomas Cook: The company inaugurated its new franchise outlet in Chennai. The new Chennai outlet expands the company's network to 9 locations in the city and 15 across Tamil Nadu.

• Suve Pharma: Vivek Sharma appointed as Executive Chairman effective Sept. 20.

• Sula Vineyards: The company launches Sula Merlot priced at Rs 895.

• Balkrishna Industries: The company commissioned 30,000 MTPA of high-value advanced carbon material plants.

• Cosmic CRF: The company’s unit bagged an order worth a gross value of Rs. 127 crore for supply of cold formed steel sheet piles.

The Nifty September futures were up by 0.43% to 25,506 at a premium of 91 points, with open interest down by 0.4%.

The Nifty Bank September futures were up by 0.8% to 53,177 at a premium of 140 points, while its open interest was up by 0.87%.

The open interest distribution for the Nifty 50 Sept. 19 expiry series indicated most activity at 27,000 call strikes, with 25,000 put strikes having maximum open interest.

For the Bank Nifty options expiry on Sept. 18, the maximum call open interest was at 53,000 and the maximum put open interest was at 52,000.

Overseas investors turned net sellers of Indian equities on Thursday after two days of buying. Foreign portfolio investors offloaded stocks worth Rs 2,547.5 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors stayed net buyers for the fifth consecutive session and purchased equities worth approximately Rs 2,012.9 crore, the NSE data showed.