Trade Setup For Sept 12: Nifty's Bullish Bat Pattern Indicates Support At 24,800

The current market texture is weak, but fresh selloff is possible only after the dismissal of the 20-day simple moving average or below 24,900 and 81,400 for Nifty and Sensex, respectively, according to analysts.

"Below the same, it (Nifty and Senex) could slip till 24,775- 24,725 and 81,000-80,800, respectively. On the flip side, 25,000/81,800 would be the key levels for the bulls. Above which, it could bounce back till 25,100-25,150/82,150-82,500," according to Shrikant Chouhan, head equity research at Kotak Securities.

The NSE Nifty 50 is finding difficulty in overcoming its strong hurdle of 25,100, but on the lower timeframe, said Aditya Gaggar, director of Progressive Share Brokers Pvt.

"It is forming an advanced harmonic pattern known as the Bullish Bat pattern with the Potential Reversal Zone being placed at 24,800, which is itself acting as a strong support," he said.

The European Central Bank policy meeting tomorrow has kept investors on the sidelines, according to Siddhartha Khemka, head - research and wealth management at Motilal Oswal Financial Services Ltd.

"We expect the market to consolidate at a higher zone ahead of key events. Rate-sensitive sectors are expected to be in focus along with stock-specific action," he said.

From a technical perspective, Kush Bohra, founder of KushBohra.com. has issued a warning. "Negative divergences are evident on both daily and weekly charts, while the monthly relative ttrength index has once again approached the overbought level of 80."

"Given these indicators, traders are advised to adopt a cautious stance. It is recommended to maintain light positions, utilise any potential bounces as opportunities to book profits, and increase cash allocations," he said.

Nifty September futures fell by 0.55% to 24,938.45 at a premium of 20 points, while open interest grew by 0.19%.

Nifty Bank September futures fell by 0.47% to 51,124 at a premium of 114 points, while open interest grew by 5.03%.

The open interest distribution for the Nifty 50 Sept. 12 expiry series indicated most activity at 25,000 call strikes, with 24,500 put strikes having maximum open interest.

For the Bank Nifty options expiry on Sept. 18, the maximum call open interest was at 51,500 and the maximum put open interest was at 51,000.

Overseas investors remained net buyers of Indian equities for the third consecutive day on Wednesday.

Foreign portfolio investors mopped up equities worth Rs 1,755 crore and domestic institutional investors turned net buyers after a day of selling and bought equities worth Rs 230.9 crore, the NSE data showed.

The benchmark equity indices snapped a two-day gain to close lower on Wednesday, led by a drag in Tata Motors Ltd. and HDFC Bank Ltd., as the markets await US inflation data set that will be released later in the day.

The NSE Nifty 50 ended 122.65 points or 0.49% lower at 24,918.45, while the S&P BSE Sensex was 398.13 points or 0.49% down at 81,523.16.

• Hindustan Petroleum Corp: The company approves the construction of the Visakhapatnam-Raipur pipeline project worth Rs 2,212 crore. It has revised the cost of the Visakhapatnam refinery modernisation project to Rs 30,609 crore.

• NBCC: The company signs a MoU worth Rs 1,600 crore with MTNL to develop a 13.9-acre land parcel in New Delhi.

• Shriram Finance: The company approved and allotted senior, secured, rated, listed, redeemable, taxable, and non-convertible debentures on a private placement basis for an issue size of Rs 1,000 crore, plus a green shoe option of Rs 500 crore.

• Tata Steel: The company has signed a £500 million grant funding agreement with the UK Government for a £1.25 billion green steel project in Port Talbot. The agreement is to allow the installation of an electric arc furnace at Port Talbot. The grant will help preserve 5,000 jobs.

• Adani Ports and Special Economic Zone: The company has signed a concession agreement with DPA to develop Berth No. 13 at Deendayal Port, Kandla, Gujarat. Berth No. 13 is 300 m long and offers 5.7 MMT capacity annually. It is likely to be commissioned in the financial year 2027.

• Bharat Petroleum Corp.: The company's arm, Indian Oil, has received a production concession in Abu Dhabi for a 6,162 sq km area in an all-cash secondary transaction.

• Wipro: The company has built an AI-enabled data strategy for JFK International Air Terminal.

• Infosys: The tech giant has collaborated with Clearstream, part of Deutsche Börse, to enhance the digital issuance platform.

• State Bank of India: Bank SBI Indonesia, the overseas banking subsidiary of State Bank of India, for regulatory compliance with meeting a minimum 1% of the local shareholding requirement, has proposed to issue preference shares to PT Bank KEB Hana, Indonesia. As part of the arrangement, SBI, PT Bank KEB Hana Indonesia, and Bank SBI Indonesia signed a shareholders’ agreement on Sept. 10, which allows Bank KEB Hana Indonesia to invest in 1% shares of Bank SBI Indonesia by way of preference shares.

• GMR Airports Infrastructure: The company has changed its name to GMR Airports following the merger of GMR Airports and GMR Infra Developers.

The Indian rupee closed flat against the dollar on Wednesday ahead of the US inflation data. Crude oil fell below $70 per barrel for the first time in two years in the previous day, which supported the greenback.

The Indian currency closed at Rs 83.97 against the dollar, according to Bloomberg data. The domestic currency had closed at Rs 83.98 on Tuesday.

Asian equities advanced on Thursday taking cues from US markets after traders digested the unexpected uptick in core consumer prices in America and looked ahead for the Federal Reserve's rate decision next week.

The Japanese benchmark Nikkei 225 was up 3.48% and South Korea's Kospi was trading 1.18% higher as of 6:55 a.m. Hong Kong's Hang Seng was down 0.73% while Taiwan's TAIEX advanced 2.09%.

The yen fell 0.3% to 142.79 per dollar. The Bloomberg dollar index was up 0.1% at 101.81.

The US core consumer prices experienced an unexpected uptick in August, primarily driven by a significant increase in housing costs. The core consumer price index, which excludes food and energy costs, rose 0.3% from July and 3.2% from the previous year, according to data released by the US Bureau of Labor Statistics on Wednesday.

The overall inflation rate also increased by 0.2% from the previous month and 2.5% from August last year, partly offset by lower gasoline prices.

Following the data release, the Dow Jones Industrial Average gained 124.75 points to end 0.31% higher at 40,861.71. The S&P 500 index closed up 1.1% and the Nasdaq Composite rose 2.2%.

Oil prices maintained the previous day's momentum to stay above the $70 mark.

• US Dollar Index at 101.81.

• US 10-year bond yield at 3.67%.

• Brent crude up 0.35% at $70.86 per barrel.

• Bitcoin up 0.29% at $57,714.21.

• Gold up 0.13% at $2,514.92 per ounce.

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