Trade News : As Indian equity markets open this morning, investors are expected to react to a mix of global market trends and domestic economic data. India’s inflation for July came in lower than expected at 3.54%, below the anticipated 3.65%. However, the Index of Industrial Production (IIP) and manufacturing output in June showed a decline, with IIP at 4.2% and manufacturing at 2.6%. GIFT Nifty futures, at 07:00 AM, indicated a flat start for the NSE Nifty 50, quoting around 24,360.
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Global Market Cues
Overnight, the US markets had a mixed performance. The Dow Jones slipped by 0.4%, while the NASDAQ gained 0.2%, and the S&P 500 remained unchanged. Post-market, the US consumer inflation for July met expectations at 3%. Meanwhile, the US 10-year bond yield stayed steady at around 3.92%. On the commodities front, Gold futures surged past the $2,500 mark, and WTI Crude Oil futures rose to nearly $80 per barrel.
In Asia, Japan’s Nikkei jumped 2.6% after a slight rise in inflation to 0.3%. The Straits Times was up 0.5%, Taiwan added 0.3%, but South Korea’s Kospi was down by 0.1%.
Technical Insights
Nifty
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Om Mehra, Technical Analyst, SAMCO Securities:
The Nifty formed a spinning top candle on the daily chart yesterday, signaling indecision. The 50 DMA (Daily Moving Average) at around 24,000 acts as crucial support, with immediate support at 24,200. On the upside, the 50% Fibonacci retracement level at 24,500 is the immediate hurdle. -
Dhupesh Dhameja, Technical Analyst, SAMCO Securities:
The Nifty is currently range-bound with resistance at the 10 and 20 DEMA (Daily Exponential Moving Average). A break above 24,500 is essential to avoid selling pressure. Solid support is seen at 24,200, and a move beyond this range is needed for the index to gain momentum. -
Rajesh Bhosale, Equity Technical Analyst, Angel One:
The Nifty is in a consolidation phase, with key levels to watch being 24,200 on the downside and 24,500 on the upside. A close above 24,500 could push prices toward 24,700. -
Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Intermediates:
If the Nifty sustains above 24,480, it may trigger a rally toward 24,600-24,700 levels. Support is strong around 24,200-24,240. -
Rupak De, Senior Technical Analyst, LKP Securities:
The Nifty remains volatile and is showing a sideways-to-weak sentiment. As long as the index stays below 24,500, selling pressure might continue. Support is placed at 24,150.
Bank Nifty
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Om Mehra, SAMCO Securities:
Bank Nifty is inching higher but remains below the 20 and 30 EMAs. A close above 51,100 is needed to strengthen the short-term outlook. -
Dhupesh Dhameja, SAMCO Securities:
The Bank Nifty is in a sideways trend, struggling to sustain above 50,800-50,900 levels. Strong support is around 50,000. -
Hrishikesh Yedve, Asit C. Mehta Investment Intermediates:
A move above 50,710 could push the Bank Nifty toward 51,000-51,200. The 100-DEMA near 49,870 provides strong support.
Market Sentiment
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Foreign Institutional Investors (FIIs):
FIIs were net sellers on Monday, offloading stocks worth Rs 4,680.51 crore, bringing their August net sales to Rs 25,040.99 crore. They also sold index futures contracts worth Rs 422.97 crore. -
Domestic Institutional Investors (DIIs):
DIIs bought shares worth Rs 4,477.73 crore on Monday, with their total net purchases for August reaching Rs 27,977.74 crore.
Stocks in F&O Ban Period
Fifteen stocks are under the futures & options ban on Tuesday, including Aditya Birla Capital, Bandhan Bank, and Sun TV.
IPO and Listing Updates
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New Listings:
Brainbee Solutions (FirstCry) and Unicommerce eSolutions debut today. FirstCry’s shares are trading at an 18% premium, while Unicommerce’s shares are up by 63% in the grey market. -
Ongoing IPOs:
Saraswati Saree Depot’s Rs 160 crore IPO was subscribed 4.5 times on Day 1. Positron Energy and Sunlite Recycling Industries IPOs saw strong demand, with 17.9 times and 7.6 times subscriptions, respectively. -
New IPOs Opening Today:
Solve Plastic Products’ Rs 11.85 crore IPO opens at Rs 91 per share on the NSE SME platform, and Broach Lifecare Hospital’s Rs 4.02 crore IPO opens at Rs 25 per share on the BSE SME platform.
5 FAQs for Trading on Tuesday, August 13, 2024
What is the market outlook for Nifty today?
The Nifty is expected to open flat and remain range-bound between the support level of 24,200 and the resistance level of 24,500. A break above 24,500 could trigger a rally towards 24,700, while a sustained drop below 24,200 may lead to increased selling pressure.
How is Bank Nifty expected to perform?
Bank Nifty is likely to trade within a range of 50,000 to 51,100. A move above 50,710 could push the index toward 51,000-51,200 levels, while strong support exists at 49,870. Traders are advised to adopt a buy-on-dips strategy within this range.
What are the key global market cues affecting Indian markets today?
Mixed signals from the US markets and positive movements in Asian markets like Japan’s Nikkei are expected to influence Indian markets. The steady US 10-year bond yield and rising gold and crude oil prices are also key factors to watch
Which stocks are under the F&O ban today?
A total of 15 stocks are under the F&O ban, including Aditya Birla Capital, Bandhan Bank, Sun TV, and Biocon. Traders should avoid trading in these stocks as they are restricted in the derivatives segment
What IPOs are debuting today, and how have they performed in the grey market?
Brainbee Solutions (FirstCry) and Unicommerce eSolutions are debuting today. In the grey market, FirstCry shares are trading at an 18% premium, while Unicommerce shares are up by 63%