| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 83,216.28 | -94.73 | -0.11% |
| Nifty 50 | 25,492.30 | -17.40 | -0.07% |
| Nifty Bank | 57,876.80 | 322.55 | +0.56% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Shriram Finance | 816.35 | 23.85 | +3.01% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bharti Airtel | 2,001.20 | -93.70 | -4.47% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 10426.80 | 144.90 | +1.41% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Infra | 9393.60 | -95.20 | -1.00% |
Nifty opened lower with a gap on September 20 and fell through the day to end the second session lower. At close, Nifty was down 1.15% or 231.9 points at 19901.4. Markets fell with volumes on the NSE that were the close to the highest in recent times. Broad market indices recovered part of the losses during the day and ended with lower losses than the Nifty even as the advance decline ratio fell to 0.54:1.
Global shares were mixed Wednesday as markets awaited a decision on interest rates by the Federal Reserve due on Wednesday evening India time. Surging oil prices however unnerved investors as this could force Central Banks to either keep raising rates or keep them higher for long.
Nifty fell with a downgap on Sept 20 after forming a bearish tristar doji pattern on Monday. It seems to have formed a bearish breakaway gap. Nifty closed near the intra-day low. Nifty could now take support at 19867 and later at 19645.
Markets traded under pressure and lost over a percent, after the days of steady rise. The tone was negative from the beginning citing a sharp cut in the select heavyweights like HDFC Bank and Reliance which further cascades to others. Consequently, Nifty settled closer to the day’s low at 19,897 levels. The decline was widespread wherein metal, financials and banking were badly hit. Meanwhile, the tone was mixed on the broader front as midcap managed to end flat while smallcap lost nearly a percent.
It is a normal retracement so far and we expect the 19,600-19,750 zone to provide a cushion in case the fall continues. However, the focus should be on risk management citing the possibility of a rise in volatility during this phase. Also, traders may consider adding a few shorts as a hedge to their existing longs.
The Nifty opened gap down and traded with a negative bias throughout the day to close down 232 points. On the daily charts we can observe that the Nifty is in the process of retracing the rise it has witnessed from 19223 – 20222. On the downside it can drift towards 19840 where the 38.2% Fibonacci retracement level is placed.
The Nifty has witnessed a faster retracement and also breached the low of 19914 (wave IV low) which suggests that the rise from 19223 to 20222 has completed a wave. The daily momentum indicator still has a positive crossover however we shall assign more weightage to the price action and expect the momentum to align with the price action sooner rather than later. In terms of levels, 19840 – 19800 is the crucial support zone, while 20050 – 20100 shall act as an immediate hurdle zone.
Bank Nifty has also entered correction mode. It was unable to break the previous swing high which was a sign of weakness. On the downside the Bank Nifty can drift towards 45070 – 44930 where support in the form of the 50% fibonacci retracement level and the 20-day moving average is placed respectively. Considering the sharp fall a pullback is possible however we expect it to be sold into and that should be the ideal trading strategy from short term perspective.
In the backdrop of a global market downturn, domestic equity benchmark indices witnessed a downward trajectory in early trade on Wednesday, driven by cautious sentiments ahead of the US Federal Reserve's impending interest rate decision.
The prevailing trend was further influenced by foreign fund outflows and a notable dip in HDFC Bank, a prominent index constituent. Both Nifty and Bank Nifty exhibited an initial gap down opening, with sustained selling throughout the session, underscoring a prevailing sell-on-rise strategy. Noteworthy heavyweights such as Reliance and HDFC Bank experienced declines of 2.5% or more, contributing to the overall market sentiment.
Notably, Nifty concluded below the crucial 20,000 mark after a span of one and a half weeks, indicating a discernible presence of selling pressure. It is imperative to closely monitor the downside levels, particularly the 19,800 mark, as a breach could potentially trigger a substantial selling spree.
On a more optimistic note, Nifty encounters resistance in the range of 20,050 to 20,150 on the upside. The forthcoming decisions of global monetary authorities, including the Bank of England and the Bank of Japan, alongside the US Federal Reserve, are poised to induce a continued sense of apprehension in the market.
In such an environment, a prudent approach would be to adopt a stock-specific strategy, with the midcap space offering discernible opportunities, as evidenced by its resilient performance amid the broader market decline.
The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices. Bank Nifty underperformed today due to rising cost of funds and reduction in deposits leading to moderation in net yield.
Correction has been due for some time and valuations too were getting expensive after the recent spike, and hence investors resorted to profit-taking ahead of the outcome of the US FOMC meeting on interest rates. There are also concerns that the ongoing tension between US & Canada could have some bearing on the markets, and if the situation flares up there could be some impact on our markets.
Technically, intense selling saw the Nifty slip below the 20000 mark, which is largely negative. For the bulls now, 20000- 20030 could act as immediate resistance areas while 19825-19775 could act as a crucial support zone for the traders.
Indian rupee ended 19 paise higher at 83.08 per dollar on Wednesday versus Monday's close of 83.27.
Benchmark indices ended lower for the second consecutive session on September 20 with Nifty around 19,900.
At close, the Sensex was down 796 points or 1.18 percent at 66,800.84, and the Nifty was down 231.90 points or 1.15 percent at 19,901.40. About 1510 shares advanced, 2034 shares declined, and 137 shares unchanged.
Biggest losers on the Nifty were HDFC Bank, JSW Steel, Reliance Industries, BPCL and SBI Life Insurance, while gainers included Power Grid Corporation, Coal India, ONGC, Sun Pharma and Eicher Motors.
Amongst sectors, except power, all other sectoral indices are ended in the red with bank, metal and realty down 1 percent each.
The BSE midcap index shed 0.30 percent and Smallcap index declined 0.5 percent.
The public issue of Yatra Online has been subscribed 1.16 times on September 20, the final day of bidding, with bids for 3.6 crore equity shares against an offer size of 3.09 crore shares, according to subscription data available with exchanges.
Retail investors have provided decent support to the issue so far, buying 1.99 times the allotted quota, which is 10 percent of the offer size.
The portion set aside for qualified institutional buyers (QIB) and high net-worth individuals, which is 75 percent and 15 percent of the IPO size, was subscribed 1.28 times and 39 percent. Read More
-Overweight rating, target at Rs 2,110 per share
-Lower BVPS, earnings estimates
-One-time net worth adjusted as HDFC is restated from Ind-AS to Indian GAAP accounting
-Lower NIMs given ICRR, excess liquidity drag & elevated competitive intensity
On Monday, Canadian Prime Minister Justin Trudeau announced that there was "credible" information linking Indian government officials to the assassination of a Sikh separatist leader in British Columbia in June, and gradually panicked the market, causing the NIFY50 to drop nearly 1.34%.
As tensions between Canada and India continue to rise, the Indian market will be indirectly affected. However, it is expected that this information will be digested by the market.
Canadian pension funds such as CPPIB and CDPQ are the largest institutional investors in companies and projects in industries such as energy, infrastructure, and banking in India. Currently, India's economic system continues to expand, with GDP rising to 7.8%, and the Purchasing Managers Index also rising to 58.6. It is expected that the Indian market will continue to be active and will not be affected by this information.
