Trade Setup For Sept. 16: Positive Short-Term Outlook With Nifty Support At 25,500–25,700

The short-term market texture is positive, but there can be a range-bound price action in the near future due to temporary overbought conditions, according to analysts.

"For short term now, 25,225–25,000/82,500–82,000 would be the key support zones while 25,500–25,700/83,500–84,000 would be the crucial resistance areas for the bulls," Amol Athawale, vice president of technical research at Kotak Securities, said. "However, below 25,000/82,000, the uptrend would be vulnerable."

For Bank Nifty, Athawale highlighted that as long as it is trading above its 50-day simple moving average or 51,350, the bullish formation is likely to continue. "On the higher side, it could move up to 52,250–52,700."

"On the other hand, below a 50-day SMA or 51,350 traders may prefer to exit out from the trading long positions," he said.

On the lower timeframes, the relative strength index has entered a bearish crossover, signaling an early indication of a potential bearish momentum reversal, according to Rupak De, senior technical analyst at LKP Securities.

"In the near term, the trend may remain sideways. Support is observed at 25,150–25,200, while resistance is seen at 25,460," he said.

The domestic markets are likely to sustain their momentum due to heavy buying by foreign portfolio investors, according to Ameya Ranadive, senior technical analyst at StoxBox. "The FPIs are likely to step up further buying, as the US Fed will likely cut rates in the next meet."

The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 18 or 0.07% at 25,417 as of 06:35 a.m.

The Nifty September futures were up 0.06% to 25,372 at a premium of 16 points, with open interest down by 1.6%.

The Nifty Bank August futures were up by 0.32% to 51,929 at a premium of 10 points, while its open interest was up by 0.43%.

The open interest distribution for the Nifty 50 Sept. 19 expiry series indicated most activity at 26,000 call strikes, with 25,000 put strikes having maximum open interest.

For the Bank Nifty options expiry on Sept. 18, the maximum call open interest was at 52,000 and the maximum put open interest was at 49,000.

Overseas investors remained net buyers of Indian equities for the fifth consecutive day on Friday.

Foreign portfolio investors mopped up equities worth Rs 2,364.8 crore, domestic institutional investors turned net buyers after a day of selling and bought equities worth Rs 2,532.2 crore, the NSE data showed.

The NSE Nifty 50 and the S&P BSE Sensex ended Friday's session in loss as Reliance Industries Ltd. and ITC Ltd. dragged. However, the benchmark stock indices recorded the most weekly gains since June end.

The Nifty ended 32.40 points or 0.13% lower at 25,356.50 and the Sensex settled 71.77 points or 0.09% lower at 82,890.94.

• Dixon Technologies (India): The company’s arm Padget signed an MoU with Asus for manufacturing IT products.

• Zaggle Prepaid Ocean Services: The company has entered into an agreement with Founderlink Tech to provide business loans to Zaggle Corporate customers.

• RPG Life Sciences: The company has assigned the surplus leasehold of a Navi Mumbai land parcel to KRSNA Dynasty for Rs 145 crore.

• CDSL: The board has approved the appointment of Nehal Vora as managing director and chief executive officer for five years.

• Exide Industries: The company invested Rs 100 crore in a wholly owned subsidiary on Friday by way of subscription in the equity share capital on a rights basis.

• Trident: The company has incorporated a unit in Singapore to expand business in the global market.

• HEG: The company has sanctioned an increase in the investment to Rs 250 crore from the previous limit of Rs 200 crore to facilitate portfolio expansion.

• GMR Airports Infrastructure: The company's August passenger traffic stood at 1.06 crore, up 9% year-over-year, and August aircraft movement up 8% year-on-year.

• Laurus Labs: The US FDA inspected the company's Hyderabad API facility and closed with zero observations.

Stocks in the Asia-Pacific region rose in early trade despite data pointing out that China's economy weakened further. Stock markets in Japan, mainland China and South Korea will be closed for a public holiday.

The sentiment in the region was also affected following the second assassination attempt of the US presidential candidate Donald Trump. He was later taken to safety.

Australia's S&P ASX 200 was up 0.52% at 8,142 as of 6:10 a.m. while the US equity futures were mixed in early trading.

Former President Trump was taken to safety following gunshots at his golf course in West Palm Beach, Florida on Sunday. His Secret Service opened fire at a man who was wielding an assault rifle, according to Bloomberg. The Federal Bureau of Investigation called an apparent assassination attempt.

Meanwhile, China’s economy weakened with factory output, consumption and investment all slowing more than expected in August. The South Asian country's home prices fell to the fasted pase since 2014.

The People’s Bank of China indicated more monetary easing ahead and signaled that fighting deflation would become a higher priority.

The revival of a half-point cut by the central bank pushed stocks on Wall Street higher, driving stocks to their best week in 2024. The broader markets outperformed the benchmark gauges as the Russell 2000 climbed 2.5% on Friday.

The S&P 500 and Nasdaq Composite rose 0.54% and 0.65%, respectively. The Dow Jones Industrial Average advanced 0.72%.

Brent crude was trading 0.24% higher at $71.78 a barrel as of 6:03 a.m. IST. West Texas Intermediate was up 0.38% at 68.91.

• U.S. Dollar Index at 100.96

• U.S. 10-year bond yield at 3.65%

• Brent crude up 0.24% at $71.78 per barrel

• Bitcoin was down 1.82% at $58,723.05

• Gold was up 0.16% at $2,581.81 an ounce.

The Indian rupee strengthened against the US dollar on Friday as easing retail inflation built a stronger case for a possible earlier than expected rate cut by the Reserve Bank of India.

The rupee appreciated seven paise to close at Rs 83.90 after opening at Rs 83.92 against the US dollar, according to Bloomberg data. The domestic currency had closed at Rs 83.97 on Thursday.