The Nifty 50 has broken out of consolidation on the daily timeframe, indicating increasing bullish momentum, according to Rupak De, senior technical analyst at LKP Securities Ltd.
The sentiment is expected to stay positive, as the index closed above a key moving average, he said. “A drop below 26,000 might disrupt the current bullish trend, but until then, the strength is likely to persist in the index.”
According to Shrikant Chouhan, head equity research at Kotak Securities Ltd., the bullish setup is likely to continue if Nifty 50 trades above 26,000 and Sensex 30 trades above 85,300.
On the higher side, Nifty could move up to 26,300–26,375, and Sensex can proceed up to 86,000–86,300. While, on the other side, if Nifty falls below 26,000 then the uptrend would be vulnerable, he said. “Below the same, traders may prefer to exit out from the trading long positions.”
“On a daily timeframe, the index has formed a Marubozu Open candlestick pattern, which defines a strong grip of bulls,” said Aditya Gaggar, director of Progressive Share Brokers Pvt.
“If the Nifty 50 is above 25,970, the uptrend is intact with a probable upside of 26,450,” he said.
F&O Cues
The Nifty September futures were up 0.61% to 26,285 at a premium of 69 points, with the open interest up by 40.16%.
The Nifty Bank October futures were up by 0.3% to 54,497 at a premium of 122 points, while its open interest was up by 4.18%.
The open interest distribution for the Nifty 50 Oct. 3 expiry series indicated most activity at 27,500 call strikes, with 25,000 put strikes having maximum open interest.
For the Bank Nifty options expiry on Oct. 1, the maximum call open interest was at 54,000 and the maximum put open interest was at 54,000.
FII/DII Activity
Overseas investors turned net buyers of Indian equities on Thursday after staying sellers for two sessions.
Foreign portfolio investors mopped up stocks worth Rs 629.9 crore; domestic institutional investors stayed net buyers for the fourth session and purchased equities worth Rs 2,405.1 crore, the NSE data showed.
Market Recap
The NSE Nifty 50 and BSE Sensex extended their record run to the sixth session intraday on Thursday, led by gains in Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. The benchmarks have been touching fresh highs since Sept. 19.
The Nifty 50 ended 211.90 points, or 0.81% higher at 26,216.05, and the S&P BSE Sensex ended 666.25 points, or 0.78% higher at 85,836.12. Nifty settled at its highest closing level for the fifth straight session.
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Major Stocks In News
Trent and Bharat Electronics: The stocks will be in focus as they prepare to enter the benchmark Nifty 50 Index following their inclusion, which was announced in August.
Divi's Laboratories and LTIMindtree: The two stocks are set to be removed from the Nifty 50 Index following the revision by the NSE.
Punjab National Bank: The company closed its QIP with an issue price of Rs 103.75 per share, a discount of 5% to the floor price.
KEC International: The company raised Rs 870 crore via QIP and issued 91.1 lakh shares at Rs 955 per share.
InterGlobe Aviation: The company appointed Isidro Pablo Porqueras Orea as chief operating officer effective Nov. 1.
Torrent Pharma: The drugmaker refuted claims of Shelcal 500 allegedly failing CDSCO quality tests, saying the sample seized by the regulator is not manufactured by the company and is nongenuine and spurious.
Infosys: The company announced strategic collaboration with Sally Beauty to bring enterprise-scale IT efficiencies from hyper-automation.
Indian Bank: The company approved raising additional long-term infrastructure bonds aggregating up to Rs 5,000 crore over and above Rs 5,000 crore already raised in the current fiscal.
Escorts Kubota: Unit Escorts Kubota Finance received RBI certification to begin NBFC business.
Lemon Tree: The company signed a pact for 74-room property in Gujarat.
Piramal Enterprises: The company sold a Mumbai property to Shoquba Realty for Rs 187 crore.
Adani Green Energy: The company completed 1,150 MWac joint venture with France's TotalEnergies. As part of the JV, TotalEnergies invested $444 million in AGEL subsidiary for acquiring a 50% stake in AGEL’s solar projects located at the world’s largest renewable energy plant in Khavda, Gujarat.
Biocon: The company partnered with Tabuk Pharma to commercialise its glucagon-like peptide-1 products in the Middle East region.
Jubilant Pharmova: USFDA inspected at Washington facility in US closed with no observations.
Aditya Birla Capital: The company made an investment of Rs 500 crore in subsidiary AB Finance via rights subscription.
United Spirits: The company completed Rs 2.29 crore investment in V9 Beverages.
Life Insurance Corp.: Sunder Krishnan resigned as chief risk officer.
PC Jeweller: Bank of India approved one-time settlement for outstanding dues. With this, all 14 consortium member banks have approved the settlement.
Ujjivan Small Finance Bank: Ramesh Murthy resigned as chief financial officer effective Oct. 7.
Railtel Corp: The company received Rs 156 crore work order from the Maharashtra government for projects in the Konkan, Pune and Nashik regions.
Global Cues
Stocks in the Asia-Pacific region extended their gains on Friday on China's fiscal spending ambitions and resilient US jobs data affirmed the Fed's soft landing target.
The Japanese Nikkei was up 0.91 % at 39,161, while Australia's S&P ASX 200 was up 0.17% at 8,217 as of 6:11 a.m.
Propelled higher by new stimulus pledges by the Chinese government, the emerging-market stocks had their best day in nearly a year on Thursday, according to Bloomberg.
China’s benchmark CSI 300 Index is headed for its biggest weekly gain in almost a decade after it unveiled interest rate cuts, liquidity for banks and incentives for homebuyers.
Traders will eye China's industrial production numbers on Friday. Markets will also closely watch the US personal income and spending report during the session.
The S&P 500 and The Dow Jones Industrial Average climbed 0.40% and 0.62%, respectively. The Nasdaq Composite advanced by 0.60%.
Brent crude was trading 0.61% lower at $71.16 a barrel as of 6:02 a.m. IST. West Texas Intermediate was down 0.65% at $67.23.
Key Levels
US Dollar Index at 100.65
US 10-year bond yield at 3.80%.
Brent crude down 0.78% at $71.04 per barrel.
Bitcoin was 0.72% up at $65,171.73
Gold spot was down 0.09% at $2,669.97
Money Market
The Indian rupee closed weaker against the US dollar on Thursday, amid stabilising crude prices and month-end dollar demand.
The rupee depreciated by 4 paise to close at 83.64 against the US dollar, according to Bloomberg data.
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