GIFT Nifty traded flat during Tuesday’s early trading session at 20,117.5, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Indian equity indices NSE Nifty 50 and BSE Sensex added gains for the seventh consecutive session. Nifty 50 surpassed the 20,000 mark for the first time during the day, Sensex fell just short of its all-time closing high by approximately 400 points, settling at 67,571.90 points.
“The domestic markets began the day on a positive note, bolstered by the historic consensus achieved at the G20 summit, which instilled confidence among investors. Higher-than-expected loan growth data and strong profitability along with lower NPA in PSU banks attracted investor interest. Additionally, expectations of easing inflation, driven by a decline in vegetable prices, fueled optimistic sentiment, leading to a market rally. The return of China from deflation, growth in new bank loans, and reduced concerns about US rate hikes have paved the way for the domestic markets to reach new all-time highs,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Asian-Pacific markets traded in the red on Tuesday. Chinese indices experienced a modest downturn, with the Shanghai Composite declining by 0.24% and the Shenzhen Component falling by 0.29%. In Japan, the Nikkei-225 recorded a slight gain of 0.19%. Hong Kong’s Hang Seng index saw a more significant decline, down by 1.07%, while South Korea’s KOSPI also decreased by 0.54%.
Crude Oil
Brent crude futures hovered just above $90 a barrel on Tuesday, as investors awaited a slew of macroeconomic data due later this week that could indicate whether Europe and the U.S. continue to hike interest rates.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,473.09 crore, while domestic institutional investors (DII) purchased shares worth net Rs 366.24 crore on 11 September, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has BHEL, Chambal Fertilisers, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, PNB, SAIL securities on its F&O ban list for 12 September. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Bank Nifty Outlook
“The Bank Nifty index is currently experiencing a strong bullish momentum, with buyers dominating the market and pushing the index higher. The next significant resistance level for the index is at 46,000, where a substantial amount of call writing is evident. On the downside, the key support level has shifted to 45,000, where the highest open interest built up on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Technical View
“The short term trend of Nifty continues to be positive. A sustainable move above 20K mark is expected to pull Nifty towards the next overhead resistance of around 20450 levels (38.2% Fibonacci extension). Immediate support is placed at 19850 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
(With agency inputs.)