The sentiments for the NSE Nifty 50 remain strong as the index continues to stay above important moving averages. The strength is likely to persist as long as it remains above 25,900, according to an analyst.
On the higher end, a fresh round of rally may begin above 26,300. If the Nifty moves above 26,300, it could potentially rise towards 26,600, according to Rupak De, senior technical analyst at LKP Securities.
For the Nifty, 26,000–26,100 will act as a key support zone, while 85,000–85,300 will become a key support level for Sensex, according to Amol Athawale, vice president of technical research at Kotak Securities.
He also highlighted that for Nifty, the sentiments could change if it falls below 26,000. "Below the same, traders may prefer to exit out from the trading long positions."
For Nifty Bank, Athawale suggests that 53,500 and 53,100 would act as key support zones, while 54,500–54,800 could be the profit-booking areas for the bulls. "However, below 53,100, uptrends would be vulnerable."
"In the short term, if Nifty holds above the breakout level of 26,000, a buy-on-dips strategy should be adopted," Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd., said. "On the upside, 26,500 will be an immediate short-term target for the index."
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 24.5 or 0.09% at 26,315 as of 06:46 a.m.
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 40.16%.
The Nifty Bank October futures were up 0.3% to 54,497 at a premium of 122 points, while its open interest was up 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 sellers of Indian equities on Friday after a session of buying.
Foreign portfolio investors offloaded stocks worth Rs 1,209.1 crore, domestic institutional investors stayed net buyers for the fifth day and purchased equities worth Rs 6,886.7 crore, the NSE data showed.
Market Recap
The NSE Nifty 50 snapped its six-session winning streak on Friday and the S&P BSE Sensex ended lower after two consecutive days of gains. Despite this, the Indian benchmarks managed to end higher for the third week in a row.
At close, the Nifty was 37.10 points or 0.14% down at 26,178.95 and the Sensex was 264.27 points or 0.31% lower at 85,571.85.
Major Stocks In News
BSE: The company revised Sensex option trade fee to Rs 3,250 per crore of premium turnover value and Bankex option trade fee to Rs 3,250 per crore of premium turnover. The changes will be effective from Oct. 1.
PNB: The company raised Rs 5,000 crore through a QIP, having initially aimed for Rs 7,000 crore. The bank allotted 48.2 crore shares at a price of Rs 103.75 each, with key investors including Citi Group, Bank of America Securities, SBI Contra Fund, Morgan Stanley, and Goldman Sachs.
Apollo Hospitals Enterprise: The company stake in its unit Apollo HealthCo had been diluted as an affiliate of private equity major Advent International has picked up a stake in the company. The company's shareholding in AHL has diluted from 94.9% to approximately 78.8%.
IndusInd Bank: The board has reappointed Sumant Kathpalia as the managing director and the chief executive officer for three more years, subject to the RBI approval.
NHPC: The company signed a joint venture agreement with Andhra Pradesh Power Generation Corp. for incorporation of a JV company for implementation of pumped storage hydro power projects and renewable energy projects in Andhra Pradesh.
Zomato: Akriti Chopra, co-founder and chief people officer designated as senior management personnel has resigned effective Sept. 27.
IDFC First Bank: The company’s merger with IDFC Financial, IDFC to be effective from Oct. 1. The record date for determining eligible shareholders is set as Oct. 10.
Welspun Enterprises: The company has been declared L1 bidder by Brihanmumbai Municipal Corp. for the Mumbai water Tunnel project worth Rs 1,990 crore.
Yes Bank: The bank received Rs 84 crore from a trust in the Security Receipts Portfolio, related to sale of NPA Portfolio to JC Flower ARC.
Mangalore Chemicals & Fertilizers: The company has resumed its production at ammonia and urea plants.
LTIMindtree: The company strengthens a pact with UK retailer Currys for retail IT solutions.
Bharat Electronics: The government approved a 40-60 JV with Israel Aerospace Industries for product support for medium-range surface to air missile systems used in India.
Adani Green Energy: The company is in a business transfer agreement with unit North Maharashtra Power for carving out Dahanu station.
Adani Enterprises: The company's unit April Moon will acquire a 74% stake in Cococart Ventures for Rs 200 crore.
Escorts Kubota: The Punjab and Haryana High Court has dismissed an appeal by the excise department regarding a Rs 46.9-crore tax demand.
Rallis India: The company has relieved S. Nagarajan from his position as chief operating officer, effective Oct. 20. He will take over as the chief executive officer of Tata Chemicals at Magadi.
ICICI Prudential Life Insurance Co.: The company has received an income tax demand notice worth Rs 361 crore, including interest.
Alembic Pharmaceuticals: The company has received the US FDA establishment inspection report for the Panelav facility, which was inspected by the US FDA from July 17 to July 26.
Spandana Sphoorty Financial: The board will consider fundraising on Oct. 3.
ICICI Lombard General Insurance Co: The company has received an income tax demand of Rs 1,388 crore for April 2021 to March 2022 period.
DR Reddy's Laboratories: The company has finalized a $620 million investment in its Switzerland unit.
Global Cues
Shares in Japan opened at a steep decline following its futures contracts due to rate hike worries after Shigeru Ishiba’s victory in the party’s leadership race. The escalation of tensions in West Asia also dampened sentiments in the region.
The Japanese benchmark—Nikkei 225—opened 4.5% lower in early trade while its futures contract fell over 6% in post-market hours after the leadership race was concluded.
Australia's S&P ASX 200 was up 0.68% at 8,268, while South Korean Kospi was down 0.5% at 2,634 as of 6:40 a.m.
Ishiba favoured rate hikes, and supported policies for the Central Bank's independence and the country's deflation target, Bloomberg News reported. The yen rose sharply on Ishiba’s win, triggering caution among exporters in the country.
Meanwhile, US stocks gained for a third consecutive week but ended mostly lower on Friday on increasing rate cut optimism. S&P 500 and Nasdaq Composite declined 0.13% and 0.39%, respectively. The Dow Jones Industrial Average advanced by 0.33%.
Traders will closely watch for any cues during Fed Chair Jerome Powell's speech at the National Association for Business Economics conference in Nashville.
Key Levels
US Dollar Index at 100.41.
US 10-year bond yield at 3.75%.
Brent crude up 0.22% at $72.14 per barrel.
Bitcoin was 0.70% down at $65,374.97.
Gold spot was up 0.19% at $2,663.25.
Money Market
The Indian rupee closed weaker against the US dollar on Friday amid heightened dollar demand by importers looking to settle payments.
The rupee depreciated by 6 paise to close at 83.70 against the US dollar, according to Bloomberg data.
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