Trade Setup For Sept. 13: Nifty Projected To Climb To 25,500
The NSE Nifty 50 ended 1.89% higher and the S&P BSE Sensex closed 1.77% up at fresh closing highs.
The NSE Nifty 50 is expected to remain strong as the current market texture is bullish, according to analysts. On the upside, the rally could potentially continue toward the 25,470–25,500 range, while support is seen at 25,100, according to Rupak De, senior technical analyst at LKP Securities.
But buying on intraday correction and selling on rallies would be the ideal strategy for day traders, according to Shrikant Chouhan, head of equity research at Kotak Securities.
"For the day traders now, 25,300/82,700 and 25,200/82,500 would act as a key support zone, while 25,500–25,600/83,300–83,600 would be the key resistance areas for the bulls. However, below 25,200/82,500 uptrend would be vulnerable," he said.
“On the daily chart, the index (Nifty 50) has made a strong bullish candle, which defines the tight grip of bulls and now the next hurdle is placed at 25,670, while on the downside, 25,250 will be considered as support," Aditya Gaggar, director of Progressive Share Brokers Pvt., said.
Looking ahead, we maintain our recommendation to capitalise on this bounce by booking profits and increasing cash allocations, as suggested by Kush Bohra, the founder of KushBohra.com.
"With key global events on the horizon, investors should remain vigilant for potential volatility swings, similar to those witnessed last Friday and yesterday. The current momentum may propel Nifty towards 25,700, but prudent risk management is essential," he said.
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 17 or 0.07% at 25,388.5 as of 07:07 a.m.
F&O Action
The Nifty September futures were up 1.61% to 25,339 at a discount of 50 points, with open interest up by 11.37%.
The Nifty Bank August futures were up by 1.16% to 51,715 at a discount of 56 points, while its open interest was down by 10.4%.
The open interest distribution for the Nifty 50 Sept. 12 expiry series indicated most activity at 26,000 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 54,000 and the maximum put open interest was at 49,000.
FII/DII Activity
Foreign portfolio investors recorded the second-highest single-day buying of Indian equities so far in 2024 on Thursday.
The investors mopped up stocks worth Rs 7,695 crore, and domestic institutional investors turned net sellers after a day of buying and offloading equities worth Rs 1,800.5 crore, the NSE data showed.
Market Recap
India's benchmark equity indices ended at fresh closing highs on Thursday as markets rose sharply in the last hour of trade, led by rallies in metal, auto, and banking stocks.
The NSE Nifty 50 ended 470.45 points or 1.89% higher at 25,388.90, while the S&P BSE Sensex closed 1,439.55 points or 1.77% higher at 82,962.71, recording new highs.
Major Stocks In News
SBI Card: The company to consider raising up to Rs 9,000 crore via NCDS.
BPCL: The company approved Rs 1,138 crore capex for pipeline expansion projects.
Patanajali Foods: Patanjali Ayurved, Patanjali Parivahan to sell up to 1.1 crore shares in Patanjali Foods at Rs 1,815 per share, indicating a 6% discount to the current market price.
HG Infra Engineering: The company received an order worth Rs 716 crore from Central Railway.
HPL Electric: The company received an order worth Rs 144 crore for the supply of smart meters and conventional meters.
ONGC: ONGC Petro has allotted shares worth Rs 6,107 crore to the company. The company’s shareholding in OPaL increased to 91.2% from 81.3%.
IRCTC: LIC increases stake in IRCTC to 9.3% from 7.3% over two years.
Panacea Biotech: US DFC committed a $20 million loan to the company for expansion.
Tata Power: Tata Power Renewable Energy and Tata Motors sign a MoU for 200 fast-charging stations for electric commercial vehicles.
Intellect Design: The company introduced eMACH.ai for Sri Lanka Financial Landscape.
Route Mobile: The company’s non-retail portion of OFS received demand of 1.38 times.
BPCL: The company approved JV Pact with Sembcorp Green Hydrogen for renewable energy, green hydrogen and approved JV Pact with GPS Renewables for compressed biogas.
BLS International: The company acquired UAE-based citizenship for $31 million (Rs 260 crore) via arm.
HCL Tech: The company completed acquisition of France-based Zeena for EUR 23.9 million software company.
SBI: S&P Global affirms credit rating at 'BBB-', to company while outlook remains positive.
Zee Entertainment: NCLT approved the settlement pact with Sony India.
CESC: The company incorporated a wholly owned subsidiary, Redgaint Renewable Power Energy.
Power Grid: The company gets a letter of interest for an interstate transmission system in Gujarat.
Global Cues
Most Asian stocks rose early in the session as traders kept the Federal Reserve's rate cut bets alive even as the latest inflation print came in higher than expected.
Benchmarks in South Korea and Australia led the advance while Japanese stocks edged lower. The Nikkei 225 was 0.34% lower at 36,725, and the S&P ASX 200 was up 0.65% at 8,128 as of 6:11 a.m.
The producer price index in the US picked up slightly in August after the previous month’s numbers were revised lower. The August producer prices rose 0.2% month-on-month against the estimate of 0.1%. The jobless claims stood at 2.30 lakh for the week-ended Sept. 7 versus the estimate of 2.26 lakh.
Both mega and small caps in the US outperformed the broader market as the equity benchmarks ended higher after declining early in session. The S&P 500 and Nasdaq Composite rose 0.75% and 1.00%, respectively. The Dow Jones Industrial Average advanced 0.58%. Treasury 10-year yields advanced three basis points to 3.68%.
Brent crude was trading 0.40% higher at $72.26 a barrel as of 5:57 a.m. IST. West Texas Intermediate was up 0.48% at 69.30.
Key Levels
US Dollar Index at 101.10.
US 10-year bond yield at 3.65%.
Brent crude up 0.47% at $72.31 per barrel.
Bitcoin was down 0.19% at $58,086.63.
Gold was up 0.08% at $2,559.86 an ounce.
Money Market
The Indian rupee fell to a fresh low against the US dollar as banks persistently bought the greenback on behalf of the oil marketing companies and other importers. The dollar index rose after the core US CPI came higher than expected, which also pressured the Indian currency.
The rupee depreciated 0.02% to Rs 83.9912 against the US dollar on Thursday, compared to Rs 83.9800 a dollar on Wednesday. At 2:05 p.m., the rupee was trading at Rs 83.99 a dollar.
