The Indian market has seen a dull start to the current trading week and September 26th was no different however amid sharp selloffs in Asian and European markets, Sensex and Nifty 50 ended lower.
Domestic equities are likely to be under pressure on Wednesday as well after US stocks fell overnight with the S&P 500 reaching its lowest level in months.
Fear of rate hikes from the Fed that drove dollar and treasury yields higher along with the latest home sales and consumer confidence reports that have heightened concerns about the US economy during the time of possible federal government shutdown, has soured sentiments globally. Nifty near 19,750 levels will be decisive for recovery ahead.
On September 26, the Sensex ended at 65,945.47, down by 78.22 points or 0.12%. While Nifty 50 settled at 19,664.70, lower by 9.85 points or 0.05%. Bank Nifty sheds 141 points to end at 44,624.20, underperforming the 50-scrip benchmark.
On the market performance of yesterday, Vinod Nair, Head of Research at Geojit Financial Services said, “Trading remained flat as headwinds from the global market and continued selling by FIIs kept domestic investors under vigil. While bargain hunting was visible in small-cap stocks due to the recent correction and favourable valuation compared to large and mid-caps, IT indices slid due to the fear of one more rate hike by the FED and a consequent reduction in spending.”
Eicher Motors, Hero MotoCorp and Nestle were top gainers, while Cipla, Tech Mahindra and IndusInd Bank were top laggards on Tuesday. Banking, IT, media, and pharma stocks dragged the overall market, shrugging off gains in FMCG, realty and metal stocks. Nifty Midcap 100 tumbled by 0.2% and the Nifty Smallcap 100 surged by 0.6%. India’s volatility index on this day zoomed over 2.6%.
Gift Nifty:
Gift Nifty, formerly known as SGX Nifty, stood in the range of 19,714.0 and 19,601.0 in early trade on Wednesday.
Day Trading Guide For Today:
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher expects a support level in the range of 19,550/19,500 for Nifty 50 on Wednesday, however, resistance is factored around 19,800/19,850. While she sees Bank Nifty as having a support level of 44,300/44,250 with resistance around 45,000/45,050.
To investors, Ajit Mishra, SVP – Technical Research, Religare Broking said, “The marginal rebound on the global front combined with oversold positions is capping the downside however the tone is still bearish. A decisive move above 19750, which coincides with 20 EMA, may prompt some recovery. Amid all, we reiterate our view to stay stock-specific and avoid aggressive positions.”
Nifty Spot Index Support Level Today:
Rupak De, Senior Technical analyst at LKP Securities said, Nifty remained largely range-bound throughout the day as traders appeared uncertain. However, the short-term sentiment remains bearish as Nifty closed below the 21EMA. Looking ahead, the trend is expected to stay bearish as long as Nifty remains below the 19750 level. A support level is established at 19600, below which the index may decline further towards 19250.
Also, Shrikant Chouhan, Head of Research (Retail), Kotak Securities said, technically, the Nifty has formed an inside body candle indicating continuation of a range bound trend in the near future. For day traders, 19735 would be the immediate resistance level while 19620 could act as a key support zone. Above 18735, the index could move up till 19780-19800. On the other hand, below 19620 the market could slip till 19550-19520.
Bank Nifty Index Support Level Today:
Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said, the Bank Nifty index has remained in a consolidation phase, marked by the bulls defending the 45,500 level while the bears have established a hurdle around 45,000. To establish a trending move, the index must break out of this range on either side, providing a clear direction for the market. Currently, the index is trading below its 20-day moving average (20DMA), and a decisive move above this level could trigger positional buying on the long side, potentially changing the landscape of this consolidation phase.”
Intraday Stocks Picks:
Parekh recommended buying in three stocks during Wednesday’s trade. These are:
1. CDSL: Buy at Rs 1327 with a stop loss of Rs 1290 for a target price of Rs 1430.
2. MTAR Technologies: Buy at Rs 2561 with a stop loss of Rs 2500 for a target price of Rs 2700.
3. Chalet Hotels: Buy at Rs 557 with a stop loss of Rs 550 for a target price of Rs 590.
Stocks In News:
Signature Global India is set to debut on September 27 on BSE and NSE which is in the timeline of T+3 since the closing of its IPO. The public offer’s issue price is fixed at Rs 385 per equity share.
Other stocks like Infosys, Sai Silks Kalamandir, 3i Infotech, Shyam Metalics and Energy, Suzlon Energy, and Century Textiles and Industries will be in focus.
Also, companies like Quess Corp, Hindustan Foods, SBFC Finance, 3i Infotech, BEML, Crompton Greaves Consumer Electricals, Tilaknagar Industries, Glenmark Pharmaceuticals, Uniparts India and Global Health will be holding their investors meeting today.
FIIs and DII data:
On September 26th, foreign institutional investors (FIIs) and domestic institutional investors showed a mixed trend.
In Indian stocks, FIIs continued to be net sellers of equities to Rs 693.47 crore on Tuesday, while DIIs made buying of Rs 714.75 crore.
F&O Ban List:
In the futures & options (F&O) ban list for September 27, NSE added two stocks namely Delta Corp and India Cements to the list. However, it retained stocks like Balrampur Chini Mills, Canara Bank, Hindustan Copper, and Indiabulls Housing Finance in the ban list. Meanwhile, the exchange excluded Granules India from the list.
Securities which are banned in the F&O list are those that have crossed 95% of the market-wide position limit.
Global Trends:
After the latest home sales and consumer confidence reports, US markets closed in red with the S&P 500 index touching its lowest level since March.
The US consumer confidence dropped for a second consecutive month in September to 103 compared to 108.7 in August. Dana Peterson, Chief Economist at The Conference Board said, “September’s disappointing headline number reflected another decline in the Expectations Index, as the Present Situation Index was little changed.” He added, “Consumers also expressed concerns about the political situation and higher interest rates. The decline in consumer confidence was evident across all age groups, and notably among consumers with household incomes of $50,000 or more.”
Peterson added that expectations for the next six months tumbled back below the recession threshold of 80, reflecting less confidence about future business conditions, job availability, and incomes. Consumers may be hearing more bad news about corporate earnings, while job openings are narrowing, and interest rates continue to rise-making big-ticket items more expensive.
On a six-month moving average basis, in the US, Peterson highlighted that plans to purchase autos were flat but remained at an elevated level, while plans to purchase appliances continued to trend upward. But plans to buy homes-more in line with rising interest rates-continued to trend downward.
Meanwhile, as per the Commerce Department data, sales of new single-family houses in August 2023 were at a seasonally adjusted annual rate of 675,000, according to estimates. Also, the median sales price of new houses sold in August 2023 was $430,300. The average sales price was $514,000. The seasonally adjusted estimate of new houses for sale at the end of August was 436,000, representing a supply of 7.8 months at the current sales rate.
At Wall Street, bears dragged benchmarks overnight as the Dow Jones Industrial Average dipped by 1.14% to 33,618.88, while the S&P 500 index nosedived by 1.5% to 4,273.53. The tech-heavy Nasdaq Composite Index underperformed the most with a downfall of 1.6% to finish at 13,063.61.
