GIFT Nifty traded 0.03% lower during Tuesday’s early trading session at 19,593.5, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Friday, the Sensex closed above the 65,500 mark, while the Nifty topped 19,500. Sectors like metals took the lead, along with gains in PSU banks, I.T., real estate, and media. However, consumer durables and fast-moving consumer goods stocks faced challenges.
“Recent releases of domestic macroeconomic data have portrayed a positive picture for the domestic markets, allowing them to maintain their momentum. Despite profit booking in Nifty Auto after reaching an all-time high, the market regained its footing with robust buying in IT stocks. The increase in the US unemployment rate has solidified expectations of a pause in rate hikes, and positive global cues have further boosted market sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services.
Key things to know before share market opens on 5 September, 2023
Wall Street
The US stock markets were closed on Monday, September 4 in observance of Labor Day. Trading will resume on Tuesday.
Asian Markets
Asian-Pacific markets traded in the red on Monday. Chinese indices Shanghai Composite and Shenzhen Component decreased by 0.6% and 0.53% respectively. Japan’s Nikkei-225 fell by 0.31%, while Hong Kong’s Hang Seng index dropped by 1.28%. South Korea’s KOSPI was lower by 0.32%.
Crude Oil
Oil prices were mixed on Tuesday as support from China’s measures to shore up its economy vanished, offsetting expectations of an extension in supply cuts by two leading OPEC+ members Saudi Arabia and Russia.
FII/DII Data
Foreign institutional investors (FII) sold shares worth net Rs 3,367.67 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,563.48 crore on 4 September, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has Balrampur Chini Mills, Indiabulls Housing Finance, BHEL, India Cements and Hindustan Copper securities on its F&O ban list for 5 September. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Bank Nifty Outlook
“The subdued activity may be attributed to prices nearing the upper range of the recent consolidation phase, which is around the 44800 – 45000 range. This particular range will be closely monitored in the upcoming sessions, as a sustained move beyond it could signal a continuation of the uptrend where immediately 45600 – 45800 could be tested in the near term. Going ahead, it appears that any intraday dips in the coming session should be again considered as a buying opportunity. In such a scenario, the strong immediate support is noted around the 44300 – 44200 range,” said Rajesh Bhosale, Technical Analyst at Angel One.
Technical View
“Nifty is currently in an attempt of showing an upside breakout of the down sloping trend line around 19500 levels. A decisive move above 19600 levels is expected to pull Nifty towards the next upside of around 19800-19900 levels in the near term. Immediate support is at 19430 levels” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
(With agency inputs.)