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The index not only failed to defend the 25,000 mark, but at one point even broke below 24,900, before eventually closing above that mark after final adjustments. 24,800 on the downside and 25,100 on the upside has become the current range for the Nifty.
Even Gautam Shah of Goldilocks Premium Advisory told CNBC-TV18 on Wednesday that 25,150 is now a very important near-term barrier for the Nifty, that it needs to cross for further upside.
Selling pressure came from all corners, be it Metals, Autos, PSU banks and even the entire CPSE basket, that continues to move lower from its August 1 peak. Even the midcap index, which was an outperformer till the start of the second half of the day, ended in the red.
A negative handover from Wall Street though, may add to pressures on the downside. US CPI for August came in at 2.5%, which was the lowest since February 2021, while core CPI can be hotter than expected.
This now brings us to some important questions for Thursday’s trading session, which also happens to be the weekly expiry for the Nifty 50 options contracts:
- Similar to the fall on Monday, will the Nifty find support in the 24,750 – 24,800 range on the downside, in case of another gap down start on Thursday?
- External factors aside (Oil prices for ONGC, Oil India, OMCs), will the PSU basket, PSU banks in particular, continue to witness selling pressure?
- With the Nifty Bank being as choppy as it is, would it be prudent to look for a near-term bottom on the index and seek a contra long?
- For how long will FMCG stocks continue to defend the market?
Both foreign and domestic institutions were net buyers in the cash market on Wednesday.
Rajesh Bhosale of Angel One believes that in case Monday’s support of the Nifty around 24,750 is broken, it could lead to further weakness towards levels of 24,500. On the slip side, 25,100 – 25,150 remains a strong resistance for now.
The short-term Nifty trend remains rangebound to weak and a pullback move towards 25,050 – 25,100 should be used to exit from existing long positions, said Aditya Agarwal of Sanctum Wealth. On the downside, he sees support for the index around 24,880 and weakness below that can take the Nifty down to 24,750 levels.
Kotak Securities’ Shrikant Chouhan is of the view that a fresh bout of selling is possible on the Nifty only below the 20-DMA or below levels of 24,900 decisively, in case of which the index can fall to levels of 24,725. On the flip side, 25,000 will be a key level for the bulls.
We have been highlighting this since the start of the week that the problem with indices like the Nifty Bank has been the lack of consistent follow-up buying and that showed in the price action in Wednesday’s trading session as well.
The Nifty Bank yet again tested 51,400 on the upside but succumbed to selling pressure as weekly expiry related jitters played out. The end result being that from testing 51,700 on the upside, the index is now on the verge of breaking 51,000 on the downside, something that the bulls may not want to happen.
The Nifty Bank has strong support at the 50,500 mark on the downside, said Om Mehra of SAMCO Securities, but the index will have to close above 51,400 for the bullish momentum to return. PSU Banks continue to weigh on the index. In the short-term, he expects the Nifty Bank to remain rangebound within the 50,650 – 51,380 – 51,500 range.
Hrishikesh Yedve of Asit C Mehta Investment Interrmediates said that the Nifty Bank has support near the 100-DEMA near 50,250 levels, while 51,400 – 51,420 acts as a short-term hurdle. Only a sustained move above 51,420 can take the Nifty Bank back to 51,800 – 52,000 levels.
What Are The F&O Cues Indicating?
Fresh long positions were seen in these stocks on Wednesday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Bajaj Auto | 3.72% | 23.13% |
| Page Industries | 3.75% | 9.08% |
| Godrej Consumer Products | 0.13% | 7.14% |
| Berger Paints | 2.24% | 6.59% |
| Asian Paints | 1.97% | 6.26% |
Fresh short positions were seen in these stocks on Wednesday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Aarti Industries | -4.54% | 17.88% |
| Tata Motors | -6.39% | 16.19% |
| ICICI Bank | -0.27% | 11.90% |
| SBI | -1.49% | 9.06% |
| Indian Oil | -3.17% | 7.28% |
These are the stocks to watch out for ahead of Thursday’s trading session:
- Adani Ports: To develop a multipurpose berth at Gujarat’s Kandla port. It has signed a concession deal with the DPA to develop the berth at the Dindayal Port in Gujarat. The berth will handle multipurpose cargo and is expected to be commissioned in financial year 2027.
- IndiGo: In an exclusive interview to CNBC-TV18, the airline’s CEO said that the Business Class will be introduced in flights in November between Delhi to Mumbai. The aim is to become a global airline by 2030. There are also plans to increase international destinations to 40 by the end of the year.
- Route Mobile: Proximus Opal, one of the company’s promoters, plans to sell up to 38 lakh shares or 6.03% of the company’s total equity through an Offer for Sale (OFS). The floor price for the OFS has been fixed as ₹1,635 per share. The OFS will open for non-retail investors on September 12 and for retail investors on September 13.
- BPCL: Joint Venture between company’s arm Bharat PetroResources Ltd. (BRPL) and Indian Oil gets production concession by SCFEA or Supreme Council For Financial & Economic Affairs, Abu Dhabi. The concession agreement covers a total area of up to 6,162 square kilometers.
- HPCL: Board has approved Visakh Raipur pipeline project investment worth ₹2,212 crore to construct a pipeline from Visakh to Raipur. Visakh refinery modernisation project cost revised to ₹30,609 crore.
- Wipro: Builds AI-enabled data strategy for JFK International Air Terminal.
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