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.
- 22 Sep
Technical Analysis Report for Nifty and Three Buy Calls
The Nifty index has been on a strong uptrend in the past three weeks, but it has recently retraced some of those gains. It is now expected to oscillate within the 19,605 to 19,878 range over the next few sessions. Three stocks that look good for buying over the next 2-3 weeks are Havells India, KSB, and Gujarat Ambuja Exports. All three stocks have strong bullish momentum and are trading above their key moving averages.
- 22 Sep
Maruti Suzuki Stock Gains on Bullish Stance from Global Brokerages
Maruti Suzuki stock gains on bullish stance from global brokerages Shares of Maruti Suzuki India surged on Friday after global brokerages Citi and Morgan Stanley maintained bullish stance on the counter. Both brokerages cited the company's improving product mix and attractive valuation as key reasons for their optimism. In addition, Maruti Suzuki reported strong sales performance in August 2023, with total domestic sales jumping 14 percent year-on-year and sale of utility vehicles jumping 118 percent year-on-year. Overall, the bullish stance from global brokerages and the company's strong sales performance are providing a boost to Maruti Suzuki stock.
- 22 Sep
PNB Gilts Hits Upper Circuit on Inclusion of Indian Bonds in JPMorgan Index
Shares of PNB Gilts hit upper circuit on September 22, 2023, following news that India's inclusion in JPMorgan's bond index is seen driving billions of dollars of inflows. The index provider will add Indian bonds to its widely-tracked emerging market index starting June 28, 2024. PNB Gilts is a primary dealer in government securities and other fixed-income instruments. The inclusion of Indian bonds in JPMorgan's index is expected to attract significant foreign inflows, which is likely to benefit PNB Gilts and other primary dealers in government securities.
- 22 Sep
Indian Bond Markets to Remain Stable in Near Term After JPMorgan Inclusion
Indian bond markets are expected to remain stable in the near term after JPMorgan's inclusion of India in its widely tracked emerging market debt index, according to BlackRock's head of Asia Pacific fixed income, Neeraj Seth. Seth expects inflows of around $20 billion to $25 billion into India after the maximum weight threshold is achieved on the GBI-EM index. Given the size of the global government bond market, this is relatively small and is unlikely to have a significant impact on volatility.
- 22 Sep
Indian market drops on September 22 despite inclusion of Indian bonds in JP Morgan index
Indian benchmark indices Sensex and Nifty fell for the fourth consecutive day on September 22, despite the inclusion of Indian bonds in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024. The market is expected to remain volatile in the near term, with key support at 19,600 for Nifty.