The current market texture is bullish but due to temporary overbought conditions, expect a range bound activity in the near future, said an analyst. The key support zones for Nifty is between 25,800-25,850 levels while for Sensex is 84,500-84,700 for the day traders, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.
While 26,050–26,100 levels provide immediate resistance areas for the 50-stock index, the 30-stock index sees resistance at 85,300–85,500 levels, Chouhan said in an emailed statement.
Considering the strong rally in the past two trading sessions, the index seems to be overheated in the short run, according to Aditya Gaggar, director of Progressive Share Brokers Pvt.
"Profit-taking correction can be expected, where the zone of 25,800–25,850 will serve as a strong support area for Nifty; and on the flip side, a level of 26,000 will work as a psychological barrier," he said.
The NSE Nifty 50 sentiment remains positive, suggesting a potential rise towards 26,200 in the near term, said Rupak De, senior technical analyst at LKP Securities Ltd.
"On the downside, the Nifty may find support around the 21–EMA on the hourly time frame, currently positioned at 25,700. The RSI has given a falling trendline breakout on the daily timeframe. The positive sentiment is likely to persist as long as the index stays above this critical moving average," he said.
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 3.5 or 0.01% at 25,994.5 as of 06:57 a.m.
Also Read: Nifty, Sensex Post New Closing Highs For Third Day As Airtel, HDFC Bank Lead: Market Wrap
F&O Cues
The Nifty September futures were up 1.18% to 25,767 at a discount of 23 points, with the open interest up by 5.65%.
The Nifty Bank September futures were up by 0.8% to 53,550 at a discount of 243 points, while its open interest was down by 9%.
The open interest distribution for the Nifty 50 Sept. 26 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. 25, the maximum call open interest was at 54,000 and the maximum put open interest was at 52,000.
FII/DII Activity
Overseas investors stayed net buyers of Indian equities on Monday for a second day.
Foreign portfolio investors mopped up stocks worth Rs 404.42 crore, domestic institutional investors turned net buyers after a day of selling and purchased equities worth approximately Rs 1,022.64 crore, the NSE data showed.
Market Recap
The NSE Nifty 50 and BSE Sensex settled at the highest closing level for the third consecutive session in a row, as Bharti Airtel Ltd. and HDFC Bank Ltd. led gains. The indices rose to new intraday highs for four days in a row.
The Nifty 50 ended 148.10 points, or 0.57% higher, at 25,939.05. The Sensex ended 384.30 points, or 0.45%, up at 84,928.61.
Major Stocks In News
Punjab National Bank: The company plans to raise up to Rs 7,500 crore via QIP at a floor price of Rs 109.16 per share. It is up to 5% discount on floor price.
Power Grid Corporation of India: The company emerged as a successful bidder for the Khavda project to establish inter-state transmission system.
Reliance Power: The company approved raising Rs 1,525 crore via preferential issue of shares and warrants.
Shriram Properties: An FIR has been filed against a former Tamil Nadu Minister, accusing him of being involved in Rs 28 crore payments made in 2016 related to Shriram Properties and Infra, now known as Gateway Office Parks. The complaint also implicates former director KR Ramesh and several others, but the allegations are not related to the company’s business or its joint ventures.
GR InfraProjects: The company becomes the lowest bidder for Nagpur metro construction work worth Rs 904 crore.
Mahindra and Mahindra: The company addressed reports about considering a purchase of Skoda Auto VW India, stating that it and the VW Group are actively exploring various opportunities for collaboration.
BGR Energy Systems: Chennai water board terminate Rs 440 crore construction order given to the company.
Coal India: The company enters into a 74-26 JV pact with Rajasthan Rajya Vidyut Utpadan Nigam for 2x800 MW brownfield thermal project.
Bharti Airtel: The company rapidly expanded its network in Gujarat, deployed eight new cellular towers every day to bolster coverage across the state.
Spandana Sphoorty Financial: The company has approved the sale of a stressed loan portfolio, including a pool of written-off loans, with an outstanding value of Rs 304.41 crore as of June 30, 2024. This portfolio will be sold to an asset reconstruction company for a consideration of Rs 16.74 crore.
AstraZeneca Pharma: The company has received Central Drugs Standard Control Organisations approval to import and distribute Durvalumab 120 mg/2.4 mL and 500 mg/10 mL.
Thangamayil Jewellery: The company will consider raising fund on Sept. 26.
Pondy Oxides and Chemicals: The company has approved raising up to Rs 250 crore via QIP.
Valor Estate: The company has reappointed Shahid Balwa as vice chairman cum managing director w.e.f. Dec. 10, 2024, for a term of three years.
Cyient: The company incorporated its arm Cyient Project Management Consultancy as a limited liability company in UAE.
Global Cues
Asian stocks edged higher in early trade on Tuesday on bets that authorities will help revive China while the Federal Reserve is poised for more easing.
The South Korean Kospi was up 0.24% at 2,608, while the Japanese Nikkei was up 1.4% at 38,270 as of 8:46 a.m. Future contracts in Tokyo and Hong Kong benchmarks pointed to a positive start.
People’s Bank of China lowered its 14-day reverse repurchase rate to 1.85% from 1.95% on Monday, to boost the economy. Chinese central bank chief Pan Gongsheng will hold a press conference on Tuesday to announce further measures, Bloomberg reported.
While Fed's dot plot showed more rate cuts are coming this year, Fed policymaking officials weighed on the same direction.
Chicago Fed President Austan Goolsbee said with inflation approaching the central bank’s target, the focus should turn to the labour market, Bloomberg reported. He is forecasting “many more” reductions over the next year. Neel Kashkari at the Minneapolis Fed reportedly expects two quarter-point rate cuts at the remaining 2024 meetings.
The Reserve Bank of Australia will announce its key policy decisions on Tuesday.
The S&P 500 and Nasdaq Composite advanced 0.28% and 0.14%, respectively. The Dow Jones Industrial Average rose by 0.15%.
Key Levels
US Dollar Index at 100.91.
US 10-year bond yield at 3.75%.
Brent crude up 0.34% at $74.15 per barrel.
Bitcoin was flat at $63,320.48.
Gold spot was down 0.13% at $2,625.43
Money Market
The Indian rupee recorded its highest closing against the US dollar since July 12, as the dollar index struggled near the 101.00 level after the US Federal Reserve guided for more rate cuts by the end of 2024.
The local currency ended flat against the US dollar at 83.54 on Monday, according to Cogencis.
Disclaimer: NDTV is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
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