Mumbai, September 5, 2023 – The Indian stock markets are set to commence the trading week with a marginal dip as the GIFT Nifty futures hint at a negative start, indicating a potential loss of 30 points for the broader index. Key highlights and market insights for investors ahead of today’s opening bell are outlined below:
1. Sensex and Nifty Outlook:
The BSE Sensex closed at 65,628 after gaining 241 points, while the Nifty50 finished at 19,529, recording a rise of 94 points. Notably, a Doji candlestick pattern was observed on the daily scale, with the index closing near its opening levels. According to Osho Krishan, a senior analyst at Angel One, the index has crossed the 20-day exponential moving average (DEMA) at 19,416, suggesting a bullish undertone and the potential to move toward the bearish gap in the comparable period.
2. Support and Resistance Levels:
The pivot point calculator indicates that the Nifty is likely to find support at 19,459, followed by 19,433 and 19,390. Conversely, key resistance levels are anticipated at 19,545, 19,572, and 19,615.
3. Global Market Review:
US Markets: Futures for the Dow Jones Industrial Average dipped 37 points (0.11%), S&P 500 futures slipped by 2.25 points (0.05%), and Nasdaq 100 futures gained 6.25 points (0.04%) in a mixed session, following a robust week for Wall Street with significant gains.
European Markets: European stock markets closed relatively flat, with the Stoxx 600 index ending unchanged after an early morning rally. Travel and leisure stocks rose by 0.5%, and market sentiment brightened following the US jobs report.
Asian Markets: Asian markets experienced declines, with the Reserve Bank of Australia expected to maintain its benchmark policy rate. South Korea’s inflation rate for August exceeded expectations at 3.4%. China, India, and Hong Kong are set to release purchasing managers’ index readings.
4. Upcoming IPO Debut:
Infrastructure firm Vishnu Prakash R Punglia (VPRPL) is poised for its stock market debut today, with experts predicting a 50% premium over the issue price of Rs 99 per share. The IPO garnered substantial demand from investors across categories.
5. Investment in Electric Mobility:
Hero MotoCorp has received board approval to invest Rs 550 crore in electric two-wheeler manufacturer Ather Energy, reaffirming the company’s commitment to the electric mobility segment. Ather Energy is considering an IPO by 2024.
6. Zerodha’s Mutual Fund Launch:
Zerodha Asset Management Ltd., a recent entrant in India’s mutual fund industry, is preparing to launch two schemes. These include Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250), which will be benchmarked against the Nifty Large Midcap 250 Index Fund.
7. Digital Payment for SEBI Fund:
The Securities and Exchange Board of India (SEBI) has mandated that funds credited to the Sebi Investor Protection and Education Fund (IPEF) should now be done exclusively through an online mode, utilizing a link provided on the regulator’s website.
8. Oil and Gold Prices:
Oil prices slightly increased due to positive economic data from China and the US, along with expectations of ongoing crude supply cuts. Brent crude was up 0.2% at $88.72 a barrel, while US West Texas Intermediate crude rose 0.3% to $85.80. Gold prices climbed towards a one-month peak amid a weaker dollar and expectations of a pause in US interest rate hikes.
9. Foreign and Domestic Investment:
Foreign institutional investors (FII) sold shares worth Rs 3,367.67 crore, while domestic institutional investors (DII) bought Rs 2,563.48 crore worth of stocks on September 4th, according to provisional data from the National Stock Exchange (NSE).
Please note that the information provided is based on the market situation as of September 5, 2023, and is subject to change as new developments occur.
[Disclaimer: The information provided here is for informational purposes only and does not constitute investment advice. Please consult with a financial advisor before making any investment decisions.]
