Indian Equity Markets Open at Fresh Record Highs
The Indian equity markets opened at fresh record highs on September 14, tracking positive cues from Asian markets. Investors shrugged off concerns over the slightly higher-than-expected US consumer price index for August. The Sensex and Nifty 50 retraced from their early highs but were still trading in the green at noon.
Options data suggests support for the day at 19,950-20,000 levels with strong resistance at 20,150. Future open interest (OI) indicates a buildup of fresh long positions for the ninth consecutive day. Foreign portfolio investors (FPIs) have been aggressively building long positions in the index futures with the long-short ratio moving from 51.77% on September 4 to approximately 65% on September 14.
Analysts at Samco Securities said that short covering coupled with aggressive put writing was observed at the 20,000 strike, which led to a strong intraday move in the Nifty. The Nifty moved in a higher high formation on the daily chart in the previous 8 trading sessions. The maximum call open interest for the Nifty is placed at the 20,100 strike. Nifty is likely to move higher once call writers exit from the 20,100 strike ahead of the weekly expiry today.
The broader market also traded in the green, with the Nifty Midcap 100 index rising 0.3% and the Nifty Smallcap 100 index gaining 0.5%.
The outlook for the market remains positive in the near term, as investors continue to focus on domestic factors such as strong corporate earnings and economic growth. However, the market is likely to remain volatile in the medium term, as investors assess the impact of the rising inflation on global growth.
The following are some of the key factors that could impact the market in the near term:
- The outcome of the US Federal Reserve’s monetary policy meeting on September 20-21.
- The release of key economic data from the US and India.
- The movement of crude oil prices.
- The performance of global equity markets.
Investors should closely monitor these factors and adjust their investment strategies accordingly.
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