Market today: Dow, S&P 500 hit record highs; your trading guide for Sept 20

Share market today: In the US, the S&P 500 and Dow Jones closed at record highs. The Dow Jones finished up 1.26 per cent and the S&P 500 closed 1.7 per cent higher

Share market today: Domestic benchmark indices-- Sensex and Nifty-- are likely to open in green tracking positive global cues. The indices hit new record highs in the previous session after the US Federal Reserve cut interest rates by 50 basis points (bps). At around 6:48 AM, GIFT Nifty futures were up 54.9 points at 25,544.

In the US, the S&P 500 and Dow Jones closed at record highs  aday after the US Fed's policy decision. The Dow Jones finished up 1.26 per cent and the S&P 500 closed 1.7 per cent higher. Similarly, the Nasdaq Composite gained 2.51 per cent.

 

Meanwhile, the Asia-Pacific markets traded mixed today. At the last count, ASX 200 gained 0.55 per cent, Nikkei was up 1.8 per cent and Kospi was down 1.01 per cent. Meanwhile, Hang Seng was unchanged, whereas Shanghai was flat with a negative bias.

Global triggers

In the US, balance sheet data for September will be released and eyed by investors.

In the Asia Pacific markets, after a supersized interest rate cut by the US Fed, all eyes will be on various countries' central bank's stance on interest rates.

Japan's Inflation data for August was released today, where the core consumer price index, which excludes volatile fresh food costs, rose 2.8 per cent in August from a year earlier. It followed a 2.7 per cent rise in July. Keeping the inflation numbers in mind, the BOJ will take a stance on interest rates today. Besides, the People's Bank of China (PBOC) will also decide on interest rates today.

Back home, riding on structural reforms and investment, S&P Global said on Thursday, "India is poised to become the third largest economy and transition to the upper-middle income category by FY31 if it is able to clock a growth of 6.7 per cent per year till then." This statement will be analysed by the market participants.

Along with that, the release of deposit growth data for September, Foreign Exchange Reserve data for September, and Bank loan growth data for September will also be eyed.

Crude oil check

On the commodity front, last seen, Brent crude futures were down 0.25 per cent to $74.69 per barrel.

Here's how analysts view today's (September 20) trading session

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
 

A small negative candle was formed on the daily chart with a long upper shadow. Technically, this pattern indicates a false upside breakout of the range movement at 25,500 levels. Having rejected sharply from the new highs, a minor dip can't be ruled out in the short term.

The near-term uptrend of Nifty remains intact, but the market is witnessing high volatility at new highs. Any minor weakness down to the support of 25,200-25,100 levels could be a buy on dips opportunity. Immediate resistance is placed at 25,600.

Rupak De, Senior Technical Analyst, LKP Securities
 

Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550–25,600 range. On the lower end, support is placed at 25,350. Below which the Nifty might correct down towards 25,100-25,000.

Shrikant Chouhan, Head of Equity Research, Kotak Securities
 

We are of the view that the larger texture of the market is still on the positive side but a fresh uptrend rally is possible only after the dismissal of 25,500/83,500. Above 25,500/83,500, it could retest the level of 25,600/83,770. Further upside may also continue which could lift the index to 25,675/84,000. On the other side, below 25,500/83,500 it could slip till 25,300-25,285/82,900-82,700.

4 SME IPOs open, 1 closes, 1 to list:

BikeWo GreenTech Ltd IPO, SD Retail Limited IPO, Phoenix Overseas Limited IPO, and Avi Ansh Textile Limited IPO will open for subscription on NSE SME today.

On the flip side, Paramount Speciality Forgings Ltd IPO will close for subscription today on NSE SME today.

Shares of Sodhani Academy of Fintech Enablers will be listed on BSE SME today. 

FII, DII update: How much did FIIs, and DIIs buy or sell on September 19?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 2,547.53 crore. 

Conversely, the DII's were net buyers of equities worth Rs 2,012.86 crore.

Indian markets on Thursday:

The BSE Sensex added 236.57 points or 0.29 per cent to settle at 83,184.80. The index scaled a record high of 83,773.61 during intraday trade. Meanwhile, the Nifty50 touched an all-time high of 25,611.95 before ending Thursday's session with a gain of 38.25 points or 0.15 per cent at 25,415.80.