Early trends on SGX Nifty hinted that Indian equity markets are likely to open marginally higher on Thursday, weekly F&O expiry day. Nifty futures traded 27 points, or 0.15% higher at 18,017 on the Singapore Exchange, signaling that domestic benchmark indices BSE Sensex, NSE Nifty 50 were for a positive start. “The biggest catalysts and next direction for Nifty depends on the FOMC monetary policy meeting on September 20-21. For Thursday’s session, Nifty sees major hurdles at the 18115 mark. Above the same, aggressive buying could be seen with the next goal post at the psychological 18605 mark,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.
5 key things to know before share market opening bell
Global market watch: Wall Street ended a directionless session higher on Wednesday. The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.34%, and the Nasdaq Composite added 0.74% as the US Labor Department’s producer prices (PPI) data provided some relief in the aftermath of Tuesday’s market-rattling CPI print. Meanwhile, shares in the Asia-Pacific region also rose mildly today. Japan’s Nikkei 225 rose 0.16% and the Topix index was up 0.15%. South Korea’s Kospi added 0.11% and Australia’s S&P/ASX 0.55% higher. China’s Shanghai Composite gained 0.35%, and the Shenzhen Component was fractionally higher. Hong Kong’s Hang Seng index added 0.45%.
Nifty technical view, Levels to watch for: “A long bull candle was formed on the daily chart with a minor upper shadow. Technically, this pattern indicates the emergence of sharp buying interest from the lower support. After moving above the important resistance of down sloping trend line at 17900 levels recently, the Nifty witnessed sharp buying from near that trend line support as per the concept of change in polarity. This is a positive indication. The short-term uptrend status of Nifty is still positive. A sustainable move above the hurdle of 18100 levels could pull Nifty towards the next overhead resistance of 18350 in the short term. Any weakness from here could find support around 17920 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Stock listing: Tamilnad Mercantile Bank: Tamilnad Mercantile Bank shares will debut on stock exchanges BSE, NSE today. According to market experts, the stock may get listed flat or at moderate premium over the final issue price of Rs 525 given the lower-than-expected investors’ response to the IPO. The Rs 831.6 crore public issue was entirely a fresh issue by the company, and was subscribed 2.86 times during September 5-7, with retail investors buying shares 6.48 times the allotted quota, non-institutional investors 2.94 times and qualified institutional investors 1.62 times.
IPO watch: The Initial Public Offering (IPO) of Harsha Engineers on Wednesday received bids of 4,84,73,010 shares against the offered 1,68,63,795 equity shares, at a price band of Rs 314-330, according to the data available on the stock exchanges. Overall the issue was subscribed 2.87 times on the first day of bidding. Retail Investors portion was subscribed 3.22 times. The qualified institutional buyer portion was subscribed 0.06 times. The reserved portion of non-institutional investors witnessed a subscription of 5.83 times. The issue will be open for subscription till Friday, 16 September.
Stocks under F&O ban on NSE: Indiabulls Housing Finance, RBL Bank, and Delta Corp are the three stocks under the NSE F&O ban list for today as well. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.