Nifty50 snaps eight-day winning streak, but long-term outlook positive
Indian equity markets closed on a mixed note on September 12, with the Nifty50 index snapping its eight-day winning streak. The market is expected to consolidate in the coming sessions, with support at 19,800-19,900 and resistance at 20,100.
The Nifty50 index closed at 19,993, down 3 points (-0.01%) on the National Stock Exchange (NSE), while the Sensex closed at 67,221, up 94 points (0.14%) on the BSE. The broader markets also saw a mixed trend, with the Nifty Midcap 100 index falling 3% and the Nifty Smallcap 100 index falling 4%.
Technical analysts believe that the Nifty50 index is due for a consolidation after a sharp rally in the last seven trading sessions. The range of consolidation is likely to be 20,100 – 19,800.
Here are some of the key takeaways from the market today:
- The Nifty50 index closed below the 200-day moving average, which is a bearish sign.
- The market breadth was negative, with 9 shares declining for every rising share.
- Foreign institutional investors (FIIs) sold shares worth Rs 1,047.19 crore, while domestic institutional investors (DIIs) bought Rs 259.48 crore worth of stocks.
- The volatility index, India VIX, rose 1.69% to 17.74.
Here are some of the factors that could shape the market in the coming sessions:
- The outcome of the US Federal Reserve’s meeting on September 14-15.
- The release of key economic data, such as the IIP and CPI inflation data.
- The movement of crude oil prices.
- The performance of global markets.
Investors should focus on stocks with strong fundamentals and good technicals. They should also avoid overtrading and take profits on time.
In addition to the above, here are some other points that I would like to add:
- The Nifty50 index has been in a strong uptrend since the beginning of this year, and it is likely to continue to rise in the long term. However, it is also possible that the market could consolidate in the near term before resuming its uptrend.
- Investors should keep an eye on the global markets, as any negative developments there could impact the Indian market.
- They should also monitor the movement of crude oil prices, as a rise in oil prices could put pressure on the Indian economy and the stock market.
Overall, the market is expected to remain volatile in the coming sessions, but the long-term outlook is positive. Investors should focus on stocks with good fundamentals and technicals, and they should avoid overtrading.
- 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.