 "Share market today: Nifty consolidation, ECOS IPO, Orient Tech listing")
Share Market Today, Wednesday, August 28, 2024: The Indian market is poised for a slow start on Wednesday as signalled by GIFT Nifty futures, which were trading at 25,002 levels at around 7:15 AM.
The BSE Sensex and the NSE Nifty 50 are expected to be weighed down by global cues and a lack of domestic drivers, as they await inflation data in the US and more clues about possible rate cuts in the country.
The BSE Sensex and the NSE Nifty 50 are expected to be weighed down by global cues and a lack of domestic drivers, as they await inflation data in the US and more clues about possible rate cuts in the country.
Wednesday will also see investors in the domestic market awaiting the AGM of Reliance Industries, scheduled for Thursday. Globally, they will eye cues such as a slew of economic data in the US and a speech by Federal Reserve member Christopher J. Waller. The speech could reveal more clues about the quantum and frequency of interest rate cuts by the US central bank.
Markets are anticipating an imminent start to the Federal Reserve's monetary policy easing, after Chair Jerome Powell said on Friday the central bank was ready to start cutting rates.
In Asia, investors would also be interested in the readings of Japan's Leading Composite Index, which indicates the direction of the Japanese economy in the next few months.
Oil tempreture
Meanwhile, oil prices slipped on Tuesday, as investors weighed the brewing geopolitical risks in the Middle East.
Brent futures settled down 2.3 per cent at $79.55, per barrel, while US crude fell 2.4 per cent to $75.53.
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Middle East tensions, along with concerns about a potential shutdown of Libyan oil fields, had led to a surge in oil prices of more than 7 per cent over the previous three sessions. However, that rally lost steam on Tuesday, with a slight dip in prices.
Wall Street and global markets performance
A gauge of global shares climbed on Tuesday as investors kept a watch on the flaring turmoil in the Middle East, as well as the impending earnings from Nvidia and US inflation data.
Wall Street's main indices ended higher in a choppy trading, with the Dow Jones Industrial Average adding 0.02 per cent to 41,250.50, the S&P 500 gaining 0.16 per cent to 5,625.80 and the Nasdaq Composite rising 0.16 per cent to 17,754.82.
European stocks also finished up 0.16 per cent.
Gold traded above $2,500 per ounce on rate cut expectations and lingering concerns about the Middle East conflict.
How are Asian markets trading today?
Asia-Pacific markets opened lower on Wednesday, ahead of Australia's July inflation numbers. Australia’s S&P/ASX 200 opened 0.40 per cent lower ahead of the CPI release. Japan’s Nikkei 225 was flat, while the broad-based Topix fell 0.3 per cent.
South Korea’s Kospi as well as the small-cap Kosdaq were down 0.40 per cent, while Hong Kong’s Hang Seng index futures were at 17,871, lower than the HSI’s last close of 17,874.67.
How are analysts viewing today's (August 28) trading session?
Rupak De, Senior Technical Analyst, LKP Securities
The sentiment has entered an indecisive phase as the Nifty closed with a Doji pattern on the daily chart. The significant presence of both call and put option writers at the 25,000 strike price strengthens the technical setup. As a result, the Nifty is likely to remain range-bound or might experience a slight dip in the near term. On the lower end, 24,800 could act as immediate support, while a rise above 25,100 might push the Nifty towards 25,300.
Vinay Rajani, CMT, Senior Technical and Derivative Analyst, HDFC securities
Nifty rose for the ninth consecutive session with minor gains. Nifty smallcap index hit fresh all time high and closed with strong wicket. Trend of the Nifty is bullish and long positions should be held with 24,875 stoploss on closing basis. On the higher side, 25,078, 25,300 and 25,500 are the next resistances.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
On the daily charts, we can observe that the Nifty is witnessing profit booking at higher levels around the all-time high of 25,078. The negative divergence and crossover on the momentum indicator could be the reason for the vulnerability at higher levels. On the downside, crucial support is placed in zone 24,960- 24,855. On the upside, the immediate hurdle is placed at 25,200 – 25,250.
Rajesh Bhosale, Equity Technical Analyst, Angel One
Traders appeared cautious, waiting for new highs, which was reflected in the formation of a neutral 'Doji' pattern on the daily chart. This pattern is reminiscent of a similar formation earlier in the month that led to a price correction, creating a somewhat uncertain outlook.
Nevertheless, there are no additional signs of weakness, and with the broader market sentiment remaining strong, we maintain a positive bias and recommend buying on dips.
To trigger momentum, new highs need to be established soon, which could open the door to further gains. Key levels to watch include 24,975 and the bullish gap around 24,850 as immediate support, with resistance at 25,080–25,100 and next at 25,400. Traders are advised to keep a tab on the above levels and trade accordingly.
FII, DII update: How much did FIIs, and DIIs buy or sell on August 27?
As per data from the NSE, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 1,503.76 crore, while DII's were net sellers of equities worth Rs 604 crore.
IPO watch: Premier Energies, Paramatrix Technologies, Indian Phosphate, Jay Bee Laminations, and Resourceful Automobile. ECOS Mobility and Aeron Composite open today
Orient Technologies IPO listing today
Orient Technologies shares will debut on the NSE and BSE today. The company has fixed the issue price of Rs 206 per share for the IPO. As per IPOwatch.com, Orient Technologies shares are commanding a grey market premium (GMP) of Rs 82, indicating a likely listing gain of 40 per cent.
Main Board IPO:
The initial public offer (IPO) of ECOS Mobility will open for subscription today. The issue is an offer for sale of 18 million shares, with an aim to raise Rs 601.20 crore.
NSE, BSE SME IPOs:
Aeron Composite will open for subscription today on NSE SMEs. The issue comprises of a fresh issue of shares worth Rs 56.10 crore.
Here's how the Indian benchmark performed on Tuesday:
The benchmark indices Sensex and Nifty closed on a muted note on Tuesday, after the 50-stock Nifty 50 retreated from near its all-time high. The Nifty ended 0.03 per cent higher, while the Sensex closed higher by 0.02 per cent.
Among sectors, the media index climbed over 4 per cent, while the financial services index was up 1.48 per cent at closing bell.
In contrast, the FMCG index closed 1.06 per cent lower, followed by consumer durable, metal and auuto indices. The Bank index closed in the green.