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The Nifty remains comfortably perched above the 25,300 mark, even above the previous record high of 25,333. It ended last week with gains of close to 2% with the rally led mainly by largecap heavyweights.
If one wondered that ahead of the all important US Federal Reserve rate decision would bring some uncertainty on Wall Street, it was not to be, at least on Friday. The S&P 500 and the Nasdaq posted yet another day of gains to round off their best week of 2024. The S&P 500 is now less than 1% away from its record high levels that it hit this July.
Friday’s Wall Street sessions would give the bulls lots of confidence heading into the all important Fed rate decision week. Even though the rally seen on the indices has led to questions as to whether the Fed is even relevant in the scheme of things, but the commentary would definitely be relevant. Wall Street participants continue to debate whether the Fed will cut by 25 basis points or by 50. You can read more on the Fed’s previous rate-cutting cycle, right here.
Even as the benchmark indices took a breather on Friday, the broader markets continued to make merry. The Midcap index crossed the mark of 60,000, aided by a surge in Metal stocks and the beaten down PSU banks. Whether that continues in the new week or not, remains to be seen.
Both foreign and domestic institutions were net buyers in the cash market on Friday. However, the numbers may be skewed due to the block deals seen in stocks like Jagsonpal Pharma, Edelweiss and Godrej Agrovet.
Rajesh Bhosale of Angel One advises booking profits at higher levels to account for any potential volatility ahead of the Fed rate decision. For the Nifty, 25,200 will be an immediate support, while the strong support comes further down at 25,000 – 24,970 levels. On the upside, 25,500 – 25,600 can be an immediate hurdle.
The short-term trend of the Nifty remains positive and has engulfed the long bear candle of the previous week on the weekly chart, said Nagaraj Shetti of HDFC Securities. A strong move above 25,400 can take the index to 25,800 levels on the near-term. Immediate support is seen at levels of 25,200.
Asit C Mehta Investment Interrmediates’ Hrishikesh Yedve believes that the Nifty has closed above the previous breakout point of 25,335, indicating strength. He advises a buy-on-dips strategy on the index, for potential short-term targets of 25,500 and 25,800. On the downside, support is seen at 24,980 levels.
Nifty Bank turned out to be an outperformer on Friday as well, even as the Nifty saw some modest losses. The index has seen gains of nearly 1,000 points in the last two trading sessions. The Banking index also ended with gains of over 2% for the week. The gains were further supported by a reversal in PSU Banks, which have otherwise been underperformers. The index is now just 60 points away from the 52,000 mark, which it came within six-points to reclaiming on Friday, but reverse from those levels.
Amol Athawale of Kotak Securities said that the Nifty Bank remaining above its 50-DMA or 51,350 levels, the bullish formation will continue. The next level on the upside is said to be 52,250 – 52,700. On the flip side, a slip below the 50-DMA will lead to traders exiting long positions.
What Are The F&O Cues Indicating?
Fresh long positions were added in these stocks on Friday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Muthoot Finance | 1.46% | 18.97% |
| Can Fin Homes | 2.90% | 13.61% |
| Bharat Forge | 1.64% | 11.19% |
| IRCTC | 0.44% | 9.69% |
| Oracle Financial | 5.75% | 9.14% |
Fresh short positions were seen in these stocks on Friday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Polycab | -1.36% | 9.90% |
| Godrej Consumer Products | -1.94% | 7.42% |
| Cummins India | -1.08% | 6.20% |
| Crompton Consumer | -1.52% | 4.73% |
| ABB India | -0.36% | 4.56% |
Short covering was seen in these stocks on Friday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| NMDC | 2.15% | -6.90% |
| Bajaj Auto | 0.44% | -4.34% |
| PNB | 2.16% | -3.84% |
| AU Small Finance Bank | 0.60% | -3.70% |
| Bandhan Bank | 4.97% | -3.49% |
Unwinding of long positions was seen in these stocks on Friday, meaning a decline in both price and Open Interest:
| Stock | Price Change | OI Change |
| Granules India | -2.63% | -13.13% |
| Shriram Finance | -0.79% | -4.19% |
| Max Financial | -1.09% | -3.98% |
These are the stocks to watch out for ahead of Monday’s trading session:
- Adani Power & Adani Green Energy: Maharashtra state DISCOM issues Letter of Intent for supply of 6,600 MW hybrid solar and thermal power by the companies. Adani Green to supply 5 GW solar power from Khavda. Adani Power to supply 1,496 MW thermal power from new 1,600 MW ultra-supercritical capacity
- Hindustan Unilever: Files petition before the Bombay HC challenging the ₹962 crore tax order from the Income Tax authorities. HUL had received the ₹962 crore tax notice over TDS dispute in the GSK deal.
- Dixon Technologies: Arm Padged Electronics Pvt. Ltd. has signed an MoU with Asus India Pvt. Ltd. for manufacturing of information technology products i.e. notebooks.
- Zydus Life: Arm signs exclusive licensing and supply agreement with US-based Viwit Pharmaceuticals. The arm has signed an agreement for Gadobutrol injection and Gadoterate Meglumine Injection for the US market.
- Thermax: Bags repeat order worth ₹516 crore for setting up another 300 MW energy project from Jindal Energy, Botswana
- Sugar Stocks: Government allows sugar mills and distilleries to make rectified spirit and extra neutral alcohol from Sugarcane Juice & B-heavy molasses.
- Lumax Auto: Acquires majority stake in Greenfuel Energy Solutions for ₹221 crore.
- GMR Airports: August passenger traffic up 9% year-on-year and 0.1% month-on-month to 1.06 crore. August domestic passenger traffic up 7.4% year-on-year. International passenger traffic up 12.9% year-on-year.
- Zaggle Prepaid Ocean Services: Signs agreement with founderlink technologies. Under the agreement, Founderlink Technologies will offer business loan to Zaggle Corporate customers.
- SpiceJet: Members approve special resolution to raise funds. August market share at 2.3% from 3.1% month-on-month.
- RPG Life: To pay ₹32.2 crore transfer charges for ULC exemption under the amnesty scheme.
- Exide Industries: Invests ₹100 crore in arm Exide Energy Solutions.
- PTC India: PTC Energy, ONGC Green and the company have signed share purchase agreement. Will divest 100% stake in PTC Energy to ONGC Green.
- Aavas Financiers: Board meet on September 18 to consider fund raising.
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