Date: 21st September 2023
Technical Overview – Nifty 50
It was a sea of red at Dalal Street amidst a hawkish Fed pause. The Federal Reserve kept interest rates unchanged but left open the possibility of one more rate hike this year. The Nifty50 slipped in the red for the third straight day and fell almost 500 points from its all-time high levels.
After the gap-down opening nifty traded in lower top and lower bottom formation and closed below the psychological level of 19,800 levels. The momentum indicator RSI has come down from the overbought zone in the daily chart, at the same time it has been reading above 60 levels in weekly and monthly charts.
On the weekly chart, the index is already down by more than 2 percent and has formed a tall red candle suggesting a throwback setup for the index. The index has closed below its 9 & 21 EMA.
The oscillator on the intraday time frame is in the oversold condition and a sharp bounce fall after a steep fall cannot be ruled out. The immediate support for the index is placed at 19,700 & 19,650 levels and resistance is capped below 19,900 levels.
Technical Overview – Bank Nifty
The undertone momentum continues for the Banking index as prices fall by more than 1.50% on 21st Sept and close below the 44,700 mark with a tall red candle. After the gap-down opening Bank Nifty traded in lower top and lower bottom formation and continued its bearish momentum.
The momentum oscillator RSI has come down from the overbought zone in the daily chart and drifted 50 levels with a bearish crossover on the cards. The Index has formed a double top formation on the daily chart and prices have closed below the pivot point of the pattern.
On the weekly chart, the index is already down by more than 3 percent and has formed a tall red candle suggesting a throwback setup of the index. The index has closed below its 9 & 21 EMA.
The oscillator on the intraday time frame is in the oversold condition and a sharp bounce fall after a steep fall cannot be ruled out. The immediate support for the Banking index is placed at 44,400 & 44,200 levels and resistance is capped below 45,000 level
- Domestic equity benchmarks closed lower for the third consecutive day on Thursday.
- Nifty closed below the 19,750 level, and trading was marked by volatility due to the expiry of weekly index options on the NSE.
- The US Federal Reserve maintained its policy stance but issued a cautious statement suggesting prolonged high-interest rates, causing investor apprehension.
- Concerns were amplified by negative factors like overseas fund outflows, an increase in the US Dollar index, rising treasury yields, and elevated crude oil prices.
- Mid and small-cap stocks experienced significant declines, while PSU banks and auto shares also tumbled.
- In contrast, media and IT shares exhibited strength, defying the overall weak market sentiment.
- The Dow Jones futures were down 183 points, indicating a negative opening in the US stock market today.
- Markets in Europe and Asia declined across the board today, tracking fall overnight in the US stock market following the U.S. Fed meet outcome. Projections showed the central bank expects to hike rates to a median of 5.6% by the end of 2023, up from the current range between 5.25% and 5.5%.
- US stocks ended lower on Wednesday as investors digested the Feds moves.
Stocks in Spotlight
- MCX stock closed 2 percent higher, fueled by reports of an upcoming trading platform launch by the end of the month. The surge in trading volumes, more than doubling, suggests increased investor interest in MCX shares. Over 9 lakh shares were traded on both exchanges, a significant uptick from the 1-month average of around 4 lakh shares.
- Apollo Tyres‘ stock witnessed a nearly 3 percent decline following the company’s announcement of a temporary halt in bias off-the-road (OTR) tire production at its Limda, Gujarat manufacturing facility. The suspension is due to concerns raised by shop floor employees regarding the renewal of a long-term settlement agreement.
- Glenmark saw a 3.5 percent decline following a CNBC Awaaz report suggesting that parent company Glenmark Pharmaceuticals was planning to decrease its stake in the firm. As of June 30, Glenmark Pharmaceuticals held an 82.84 percent stake in Glenmark.
News from the IPO world🌐
- Ola Electric eyes IPO filing by end Oct in expedited listing plan
- RR Kabel lists at over 14% premium to IPO price
- TATA Capital may launch IPO in 2025
Day Leader Board
Nifty 50 Top Gainers
Nifty 50 Top Losers
|Top Sectors||Day change (%)|
|NIFTY CONSUMER DURABLES||-0.41%|
|NIFTY OIL & GAS||-0.49%|
Advance Decline Ratio
|Advance/Declines||Day change (%)|
Numbers to track
|Indices Name||Latest||% 1D||% YTD|
|Dow Jones (US)||34,441||(0.2) %||3.9 %|
|10 Year Gsec India||7.1||-0.20%||-2.20%|
|WTI Crude (USD/bbl)||90||(1.7) %||16.5 %|
|USD/INR||83.28||0.2 %||0.7 %|
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