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The pre-market trends for the Indian share market on 17th September 2024 reveal an exciting yet cautious trading atmosphere. Global and domestic factors are influencing investor sentiment, impacting market indices, specific stocks, and sectoral movements. Below is a detailed analysis of the major takeaways, technical analyses, and stock news that traders and investors need to consider before the market opens.
Global Market Overview
The global market sentiments suggest a mixed day for Indian markets. Asian markets are trading lower, with investors reacting to the uncertainty surrounding the Federal Reserve’s monetary policy in the U.S., and the performance of the U.S. bond yields. U.S. markets saw mixed performance, where the Dow Jones rose by 228.30 points (+0.55%), whereas the Nasdaq fell due to pressure on tech stocks.
A key factor impacting global markets today is the rise in U.S. bond yields, which is further leading to currency fluctuations. Most Asian currencies are stronger against the dollar, except for the South Korean Won and Thai Baht. Additionally, oil prices have surged due to the impact of Hurricane Francine on U.S. crude production.
Indian Market Sentiment
Indices Performance
The Indian market indices reflect a resilient sentiment despite external pressures. As of the latest pre-market data:
- Sensex: 82,988.78 (+97.84 points)
- Nifty 50: 25,383.75 (+27.25 points)
- Nifty Bank: 52,153.15 (+215.10 points)
A significant highlight is that Bank Nifty has closed above 52,000 for the first time since July 2024, showing strong performance in the financial sector.
GIFT Nifty has indicated a flat to slightly positive start for the Indian markets today, although the cautious sentiment from Asian markets trading lower may bring some volatility. Notably, crude oil prices have risen, but gold and silver prices have seen a slight decline, reflecting a mixed sentiment in commodity markets.
Technical Analysis
Nifty 50 Outlook
The Nifty 50 index continues to perform well, but the index has been oscillating between gains and losses in recent trading sessions. Nifty reached a record high of 25,445.7 but failed to sustain it and closed just above the flat line. The index traded within a 110-point range and closed 60 points off the day’s high.
- Key support levels are seen between 25,150 and 25,200.
- Resistance levels are identified between 25,460 and 25,500.
- The next target for Nifty is set at 25,800.
In the short term, there seems to be limited upward potential, but the overall trend remains strong. Investors should monitor the support and resistance levels closely to gauge market momentum.
Bank Nifty Outlook
Bank Nifty has shown significant strength, gaining over 1,100 points across three trading sessions. For the first time since July 2024, Bank Nifty has closed above the 52,000 mark, and a bullish crossover is expected soon as the 20-day moving average is set to cross the 50-day moving average.
- Immediate support is at 51,800, with resistance at 52,500 and 52,600.
- Next upside levels to watch are 52,700 and 53,500.
The performance of Bank Nifty is crucial for broader market direction, as it often reflects the health of the banking and financial sectors, which are key pillars of the Indian economy.
Key Stock Insights
Several stocks are poised to be active today based on the latest developments and news:
Samvardhana Motherson
- The company has launched a Qualified Institutional Placement (QIP) to raise funds at a floor price of ₹188.85, representing a 2.6% discount to Monday’s closing price.
JK Tyre
- The board has approved a merger with Cavendish Industries, offering 92 JK Tyre shares for every 100 Cavendish shares. The deal is currently pending regulatory and statutory approvals.
Indo Count Industries
- Indo Count Global, a subsidiary, has acquired an 81% stake in Fluvitex USA, Inc. for $19.63 million. This acquisition strengthens the company’s presence in the U.S. market, with an option to acquire the remaining 19% for $4.6 million later.
Globus Spirits
- The company has ventured into the premium spirits segment with the launch of its first single malt Whisky under the brand DOAAB India Craft Whisky. This move marks its entry into the premium and craft whisky market, which has seen growing consumer demand.
TVS Motor
- TVS has launched the Apache RR 310, its flagship sports motorcycle, with a starting price of ₹2.75 lakh. This launch is expected to stir excitement in the super-premium sports bike market.
Torrent Power
- The company has entered into an MoU with the Gujarat government to develop a 5 GW solar, wind, or hybrid project in Dwarka. This is a significant step toward renewable energy expansion.
Panacea Biotech
- Panacea Biotech has reached a settlement with Sanofi India over a patent dispute, with Sanofi agreeing not to launch the disputed vaccine in India. This legal resolution strengthens Panacea’s position in the market.
Carborundum Universal
- The company is set to acquire Silicon Carbide Products in the U.S. for ₹56 crore, bolstering its portfolio in the abrasives and ceramics sector.
Market Sentiment Indicators
FII/DII Activity
On 16th September 2024, Foreign Institutional Investors (FII) were net sellers, with total sales amounting to ₹1,635 crore. In contrast, Domestic Institutional Investors (DII) were net buyers, with a total purchase of ₹754.1 crore. This divergence reflects varying confidence levels between foreign and domestic investors, often driven by differing risk perceptions regarding global vs. local market conditions.
Put/Call Ratio (PCR)
- The Nifty PCR stands at 0.9867, indicating a balanced sentiment, with a slight tilt towards bearishness.
- Bank Nifty PCR is significantly lower at 0.5691, which suggests a more bullish sentiment for Bank Nifty.
- The Fin Nifty PCR of 0.6389 also indicates bullishness in the financial index.
In general, a PCR above 1 indicates bearish sentiment, while a PCR below 1 points towards a bullish outlook.
Derivatives Analysis: Nifty Options Data
Nifty Call Options
- Maximum open interest is observed at the 26,000 strike, with 96.06 lakh contracts.
- Maximum call writing is noted at the 26,000 strike, with 29.99 lakh contracts added, indicating strong resistance at this level.
Nifty Put Options
- On the downside, the 25,000 strike holds the maximum open interest, with 59.33 lakh contracts, providing strong support at this level.
- Put writing has been most significant at the 25,400 strike, with 12.95 lakh contracts added.
This data highlights critical support and resistance levels for Nifty, giving traders insight into potential price movements.
Sectoral Performance and Securities Ban
- The BSE market sentiment was evenly split, with 2,065 stocks advancing and 2,045 stocks declining.
- Securities in the ban period include Aarti Industries, Balrampur Chini Mills, Bandhan Bank, and others, meaning these stocks are not available for fresh positions in the futures and options segment.
Conclusion
The pre-market trends and analysis for 17th September 2024 present a mixed picture for the Indian markets. Global cues are uncertain, with investors awaiting clarity from the U.S. Federal Reserve, while domestic indices like Bank Nifty have shown strong upward momentum. Key support and resistance levels, especially for Nifty and Bank Nifty, will play a crucial role in dictating intraday price movements.
Stocks like TVS Motor, Indo Count Industries, and JK Tyre are expected to see heightened activity due to significant developments, while FIIs’ selling pressure and DIIs’ buying interest offer contrasting market dynamics. Traders should keep a close watch on PCR trends and Nifty options data to navigate today’s market with confidence.
For investors and traders, today’s market may require a cautious approach, but the overall trend remains positive with selective opportunities for gains in key sectors.
