 "Share market today: US Fed rate, Israel war, Interarch IPO listing in focus")
Stock market today, Monday, August 26: Indian markets are set to open higher amid strength in US stocks. The US market was rallied after the US Fed Chairman Jerome Powell, at the Jackson Holes Symposium, ignalled at a likely rate cut in September. At around 7:00 AM, GIFT Nifty futures were up 63.3 points at 24,918.
The US markets, on Friday, edged higher with the S&P 500 finishing up 1.15 per cent, while the Nasdaq Composite up 1.47 per cent. The Dow Jones Industrial Average rose 1.14 per cent.
Asia-Pacific markets, however, were mixed after Hezbollah, on Sunday, launched hundreds of rockets and drones at Israel while Israel's military said it struck Lebanon with around 100 jets to thwart a larger attack.
At the last count, Nikkei was down 1,19 per cent, Kospi was up 0.26 per cent, and ASX 200 was up 0.43 per cent. Meanwhile, Hang Seng was unchanged and Shanghai was flat with a negative bias.
At the last count, Nikkei was down 1,19 per cent, Kospi was up 0.26 per cent, and ASX 200 was up 0.43 per cent. Meanwhile, Hang Seng was unchanged and Shanghai was flat with a negative bias.
Market participants will keep an eye on the latest readings of the US Federal Reserve's inflation data which investors hope will pave the way for rate cuts in the United States and Europe.
They will also mull the outlook for Japanese interest rates after Bank of Japan Governor Kazuo Ueda on Friday reaffirmed his resolve to raise interest rates if inflation stays on course.
On the domestic front, Reliance Industries’ (RIL’s) annual general meeting (AGM) this week
On the domestic front, Reliance Industries’ (RIL’s) annual general meeting (AGM) this week
FTSE Semi-Annual Index Review, Nifty50 rejig
Last Friday, FTSE announced various inclusions and exclusions in its FTSE All World Index, FTSE Large-Cap Index.
Inclusions in the Large-Cap index include Bharat Dynamics, Dixon Technologies, Mazagondock Shipbuilders, Oil India, PB Fintech, and The Phoenix Mills among others. Besides, Bank of Maharashtra, Bharat Dynamics, Escorts Kubota, and Cochin Shipyard were included in the World Index along with 9 other companies.
That apart, the NSE, last Friday, announced changes to the benchmark Nifty 50 index, which will take effect from September 30. Tata Group's Trent, and Bharat Electronics (BEL) will be added to the index, while LTI Mindtree and Divi's Laboratories will be removed. READ MORE
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Here's how analysts view today's (August 26) trading session:
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the daily charts, the Nifty closed positive for the seventh consecutive trading session. The upmove appears a bit over stretched as it has been rising higher without any meaningful pullback toward the hourly moving averages. The hourly momentum indicator has a negative crossover along with a negative divergence. Thus, it can be an intraday dip, and hence caution on longs is advised. The Nifty is also trading close to the 78.6 per cent retracement mark 24830 which shall restrict further upside. Thus, the overall trend remains sideways, and the range of consolidation is 24200 – 25000.
The Nifty Bank can resume its upmove after a few days of consolidation. On the upside, we can witness an upmove towards 51500 – 51900 from short term perspective. A stop loss of 50400 should be maintained for the long positions.
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd
The Indian equity markets witnessed a steady and gradual move throughout the week, concluding the week near its highest-ever weekly closure of 24835. Though replicating the same in the upcoming week and conquering another bearish gap on the daily chart around the 24850-24950 subzone would be a challenging task, it would require prudence rather than complacency. And once the levels are conquered, we may witness another lifetime high zone in the benchmark. On the lower end, there has been an ascend to the support zone, starting from 24750-24700, followed by 24650-24600 with anticipation of dips auguring well for the bulls.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
A small negative candle was formed on the daily chart at the highs, within a narrow high low range of around 90 points. This indicates a lackluster type of movement in the market near the resistance. Nifty is currently placed at the hurdle of opening down the gap of Aug 2 around 24850-24950 levels.
Nifty on the weekly chart formed a reasonable positive candle with minor lower shadow. A significant down gap resistance of the previous week on the weekly chart has been filled completely at 24700 levels and the market closed above it.
The underlying trend of Nifty continues to be choppy with positive bias. Further, an upmove from here could pull Nifty towards 25000-25100 levels in the near term. Immediate support is at 24650.
FII, DII update: How much did FIIs, and DIIs buy or sold on August 23?
As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 1,944.48 crore.
Likewise, the DII's were net buyers of equities worth Rs 2,896.02 crore.
IPO watch: Interarch Building Products, Forcas Studio, Brace Port Logistics to list, Indian Phosphate to open, Resourceful Automobile to close
Main Board IPO:
Shares of Interarch Building Products will be listed on bourses today. The Interarch Building Products IPO is subscribed 93.79 times on August 21, 2024. The public issue subscribed 19.46 times in the retail category, 197.29 times in the QIB category, and 130.91 times in the NII category.
NSE, BSE SME IPOs:
Indian Phosphate's initial public offer (IPO) subscription window worth Rs 67.36 crore will open today under the NSE SME category.
Resourceful Automobile IPO's window will close for subscription today on BSE SME. The issue is entirely a fresh issue of 10.25 lakh shares.
Two IPOs will be listed on NSE SME today. Shares of Forcas Studio will be listed on NSE SME today. The IPO is worth Rs 37.44 crore with a fresh issue of 46.8 lakh shares.
Brace Port Logistics IPO will also be listed today under the SME category of NSE. The IPO was worth Rs 24.41 crore and the issue was entirely a fresh issue of 30.51 lakh shares.
Here's how the Indian benchmark performed on Friday:
Indian shares rose for a seventh straight session on Friday, their longest rally this year, although the magnitude of the gains eased as caution set in ahead of Federal Reserve Chair Jerome Powell's speech, expected to give cues on U.S. rate cuts. The NSE Nifty 50 index was up 0.05 per cent at 24,823.15. The S&P BSE Sensex added 0.04 per cent to 81,086.21.