As of Tuesday, September 24, 2024, the global and Indian markets are witnessing key developments that investors must closely monitor before the Indian stock market opens. Understanding the dynamics of various indices, global market trends, and technical analysis is crucial for making informed investment decisions.
Global Indices Overview
In today’s pre-market session, several global indices have shown varied performances, influencing expectations for the Indian markets:
- Dow Jones: Up by 0.15%, adding 61.29 points to close at 42,124.65.
- Nasdaq: Marginally up by 0.14%, closing at 17,974.27.
- S&P 500: Rose by 0.28%, settling at 5,718.57.
- Hang Seng: Gained 1.88%, with strong performance from key Chinese companies.
- Nikkei 225: Rose by 1.42%, reflecting positive sentiment in the Japanese market.
- FTSE 100: Slight uptick of 0.36% indicates stability in the European market.
With this, global cues signal a positive start for the Indian market, primarily driven by optimism around China’s stimulus measures and steady gains in the US markets.
Indian Market Trends: Sensex and Nifty 50
Sensex: A Record-Breaking Streak
The Sensex saw a solid performance, gaining 0.45% and reaching 54,105.80. Investors are buoyed by the positive momentum in large-cap stocks, with a strong possibility of the Sensex testing new highs.
Nifty 50: Bullish Sentiment Continues
The Nifty 50 also experienced a significant uptick, rising by 0.57% to close at 26,000. With continued bullish sentiment, there is a likelihood of the Nifty pushing beyond key resistance levels in the coming sessions. As per technical analysis, Nifty could touch 26,250 in the near term, thanks to the 1.617% Fibonacci extension target.
Key Support and Resistance Levels
For Nifty, immediate resistance is seen at 26,000, while key support levels are between 25,600 and 25,750. Traders should keep an eye on these levels as the market trends could indicate a further upside if Nifty stays above the 25,700 mark.
Bank Nifty: A Strong Performer
Record Gains for Bank Nifty
The Bank Nifty has gained over 3,000 points in the past eight sessions, closing near its record high of 54,200. It now faces resistance at 54,400. The 127.2% Fibonacci extension suggests a potential upside target of 55,000 – 55,500 if this resistance is breached. Support is seen at 53,350 – 53,750 levels, with large-cap private banks leading this rally.
Outlook for PSU Banks
While PSU banks have been relatively quiet, they are expected to catch up, further bolstering the Bank Nifty index in the coming days. Investors should focus on large-cap private and public sector banks, as they will be the key drivers of this rally.
Nifty Options Data: Key Levels to Watch
Call Options Overview
As per the weekly expiry data:
- Maximum open interest is observed at the 27,000 strike (with 1.23 crore contracts), acting as key resistance.
- Additional resistance is seen at the 26,000 strike with 70.02 lakh contracts and 26,500 strike with 52.93 lakh contracts.
- The 27,000 strike saw the highest call writing at 31.63 lakh contracts, making it a crucial level for traders.
Put Options Overview
On the downside, the maximum open interest for put options lies at the 25,000 strike (with 1.22 crore contracts), acting as key support.
- Additional support levels are seen at 25,500 strike (86.69 lakh contracts) and 25,700 strike (62.15 lakh contracts).
- The 25,900 strike saw the highest put writing with 36.3 lakh contracts, indicating strong support at these levels.
Stocks in Focus: News and Updates
Reliance Power
- Board approval for a preferential issue of shares worth ₹1,524.6 crore.
- Shares will be issued at ₹33 per share to Reliance Infrastructure, Authum Investment, and Sanatan Financial Advisory Services.
NTPC Green Energy
- IPO expected in the first week of November with roadshows planned in Mumbai, London, Singapore, and the US to attract global investments.
Firstsource Solutions
- Expanding into the retail vertical with a 100% stake acquisition of Ascensos Ltd., UK, for £42 million.
GR Infraprojects
- Emerged as the lowest bidder for a ₹903.53 crore project from Maharashtra Metro Rail Corporation.
AstraZeneca Pharma
- Receives approval to import Durvalumab Solution for infusion, used to treat BTC cancer.
Power Grid
- Declared a successful bidder for establishing inter-state transmission systems, including STATCOMs.
Bharti Airtel
- Expanding its Gujarat network by setting up 8 new towers daily, indicating robust infrastructure growth.
Global Economic Indicators Impacting Indian Markets
US Market Impact
The US Federal Reserve has signaled further interest rate cuts, aiming to stabilize the economy amid rising prices for goods and services. These developments have provided a positive backdrop for global equity markets, including India. Additionally, notable gains in Tesla (+4.65%), Meta, and Intel boosted investor sentiment.
China’s Stimulus and Asian Markets
Positive sentiment in Asian markets was driven by China’s economic measures. The People’s Bank of China (PBOC) announced a 50 bps reserve requirement ratio (RRR) cut, which is expected to provide liquidity to the markets by year-end. Investors should watch out for developments in the Hang Seng and Nikkei 225 indices, which have both shown resilience.
FII and DII Activity
- FII (Foreign Institutional Investors) were net buyers with total sales amounting to ₹404.4 crore on September 23, 2024.
- DII (Domestic Institutional Investors) also exhibited strong buying activity with total purchases worth ₹1,022.6 crore on the same day.
This active participation from both FIIs and DIIs reflects a positive outlook for the Indian markets in the near term.
Technical Analysis: Key Takeaways
Nifty Call and Put Option Analysis
The heavy call writing at 27,000 strike and substantial put writing at 25,900 strike point towards a cautious yet bullish sentiment. Investors should monitor these key levels as the market moves towards expiry.
PCR (Put-Call Ratio) Analysis
- Nifty PCR stands at 1.5145, indicating a bullish market.
- Bank Nifty PCR is at 1.4712, also suggesting positive sentiment.
- The Fin Nifty and Midcap Nifty PCR stand at 1.2477 and 0.951, respectively, signaling mixed expectations across different indices.
Conclusion: A Bullish Outlook for Indian Markets
As we move into the next trading session, the overall sentiment for the Indian markets remains bullish. Positive cues from global markets, strong technical setups, and robust institutional activity are likely to keep the Indian indices on an upward trajectory. Investors should stay cautious of key resistance levels in both Nifty and Bank Nifty, while remaining optimistic about further gains.
With Nifty 50 nearing its 26,250 target and Bank Nifty poised for a breakout, this is an exciting time for traders and investors. Stay updated on global market trends, and monitor sector-specific stocks like Reliance Power, NTPC, and Bharti Airtel for potential opportunities.
