Date: 12th September 2023
Technical Overview – Nifty 50
The Nifty50 on 12th Sept witnessed a gap-up opening and recorded a new lifetime high at 20,110 levels on the opening trade and post that without wasting a minute a sharp profit booking was witnessed and the index drifted lower and closed near 20,000 levels by forming a red candle on the daily chart.
Focus is shifted towards large stocks as heavy-weighted stocks like Larsen, TCS, Infy, ITC, Ultratech, and Icici bank were taking support today. Heavy selling is witnessed in the small and midcaps today and the breadth of the market deteriorated significantly in today’s session. Market Breadth was strongly indicating a seller’s dominance in the market.
The index on the daily chart has taken support near the horizontal trend line and is trading above its falling channel pattern. The momentum oscillator RSI (14) has rebounded sharply from the 40 levels and presently closed at 70 levels with a bullish crossover. The MACD indicator has shifted higher above its line of polarity with a bullish crossover.
The technical landscape continues to be positive as long as Nifty trades above the 19,800 mark. Technically speaking, immediate bullish targets or resistance are seen at Nifty’s next psychological 20,200 mark.
Technical Overview – Bank Nifty
The Banking on 12th Sept witnessed a strong gap-up opening but wouldn’t capitalize on its gains and drifted lower within the first initial minutes of the trade and closed marginally lower than its previous day’s close and formed a red candle for the day.
The major selling was witnessed in Nifty Midcap and small-cap for 3 & 4 percent respectively and both the indexes formed a bearish engulfing candle stick pattern on the daily time frame. The India VIX closed 3% higher at 11.69 levels.
The broader trend for the Banking index remains bullish as prices are trading in a higher high higher bottom formation. The momentum oscillator RSI (14) is steady above 60 levels with a bullish crossover. The MACD indicator has shifted higher above its line of polarity with a bullish crossover.
The technical landscape continues to be positive as long as Bank Nifty trades above the 45,000 mark. Technically speaking, immediate bullish targets or resistance are seen at Bank Nifty’s next psychological 46,000 mark.
- Benchmark indices ended with little change in a highly volatile session on September 12 despite selling across the sectors, barring Information Technology.
- India’s industrial output rose 5.7% year-on-year in July, data from the Ministry of Statistics showed on Tuesday.
- The BSE midcap and Smallcap indices posted a steepest fall in 2023, falling 3 percent and 4 percent, respectively.
- All sectoral indices, except Information Technology (up 1%), closed in the red, with auto, capital goods, power, oil & gas, metal, and realty all declining by 1-3%.
- Asian markets finished mixed as of the most recent closing prices.
- European stock markets slipped from a positive start to trade mixed Tuesday, as we get into a busy week for economic data.
- Rupee rises 9 paise to close at 82.94 against U.S. dollar.
- Global shares were mixed Tuesday following a Big Tech rally on Wall Street, as investors awaited an update on US consumer prices set for later in the week.
Stocks in Spotlight
- Uno Minda Shares traded 3.5 percent lower after the company’s board of directors approved the acquisition of the remaining 3.81 percent stake in Uno Minda Europe Gmbh to make it a wholly-owned subsidiary. According to the exchange filing, the company will purchase the remaining stake held by George Hutter in Uno Minda Europe Gmbh, a step-down subsidiary of the company, at a consideration of Euro 1.3 million or about Rs 11.5 crore.
- Spice Jet shares dropped nearly 5% on September 12 after the airline assured repayment of Rs 100 crore to its former promoter. The stock was trading at Rs 38.24 on NSE at 10:31 am. The airline committed to meeting this payment obligation by September 12 and also announced its intent to pay $1.5 million (Rs 124,420,425) in the Credit Suisse case as directed by the Supreme Court. To date, SpiceJet has paid a total of $8 million to Credit Suisse.
- Laurus Labs shares fell 6% as Kotak Institutional Equities downgraded them from ‘reduce’ to ‘sell’ while maintaining a target price of Rs 300. This follows a 20% stock rally driven by optimism about Synthesis segment performance after a challenging 1Q FY24. Currently, Laurus’ Synthesis segment commands a premium of over 25% compared to Syngene.
News from the IPO world🌐
- Jupiter Life Line Hospitals share allotment expected on Wednesday.
- EMS IPO subscribed 25.6x so far on Day 3
- Yatra Online fixes price band at Rs 135-142 for its Rs 775 crore-IPO
Day Leader Board
Nifty 50 Top Gainers
Nifty 50 Top Losers
|Top Sectors||Day change (%)|
|NIFTY FINANCIAL SERVICES||-0.01%|
|NIFTY HEALTHCARE INDEX||-0.15%|
Advance Decline Ratio
|Advance/Declines||Day change (%)|
Numbers to track
|Indices Name||Latest||% 1D||% YTD|
|Dow Jones (US)||34,664||0.3 %||4.6 %|
|10 Year Gsec India||7.2||-0.10%||5.30%|
|WTI Crude (USD/bbl)||87||(0.3) %||13.5 %|
|USD/INR||82.96||(0.3) %||0.4 %|
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