Market today: Settlement holiday, US Fed policy, Bajaj Housing IPO listing

Markets this week will majorly eye the US Fed's policy decision, apart from that other important economic data and IPOs will be on the radar

Market today: Indian benchmark indices-- Sensex and Nifty-- are likely to edge higher. At around 6:52 AM, GIFT Nifty futures were up 63.9 points at 25,436.5.

Even though the trading will take place as usual today, the accounts will be settled on Tuesday, September 17, as per a notification of BSE.

IPO watch today: Bajaj Housing Finance, Kross, Tolins Tyres, and others in focus

Main Board IPO:

The initial public offering (IPO) of Northern Arc Capital Ltd will open for subscription today. The issue is a book built issue of Rs 777 crore. It is a combination of a fresh issue of 19 million shares aggregating to Rs 500 crore and an offer for sale of 10.5 crore shares aggregating to Rs 277 crore.

 

Arkade Developers Ltd's IPO will open for subscription today. The IPO is a book built issue of Rs 410 crore. The issue is entirely a fresh issue of 32 million shares.

Shares of Kross, Tolins Tyres, and Bajaj Housing Finance will be listed on the bourses today. The shares will be listed on NSE and BSE.  

NSE, BSE SME IPOs:

Osel Devices Ltd IPO and Pelatro Ltd IPO will open for subscription today on NSE SME.

Conversely, Aditya Ultra Steel Ltd IPO, Shubhshree Biofuels Energy Ltd IPO, and Gajanand International Limited IPO will close for subscription on NSE SME today. On BSE SME Share Samadhan Limited IPO will close for subscription.

US markets' performance on Friday

Ahead of the Federal Reserve policy decision this week, the US markets closed higher. The Dow Jones closed 0.72 per cent higher, followed by the S&P 500 finishing 0.54 per cent higher, and the Nasdaq Composite added 0.65 per cent.

However, on Sunday, an assassination attempt was made on the Republican presidential candidate Donald Trump outside Trump's golf course in West Palm Beach, Florida. This incident as per a Reuters report has the potential to to spur volatility in markets.

Asian markets performance today

In the Asia-Pacific markets, at the last count, ASX 200 gained 0.52 per cent, however, Hang Seng was down 0.48 per cent. Meanwhile, all other indices were closed for trading due to holidays in China, Japan, South Korea, and Indonesia.

Meanwhile, China's disappointing economic figures over the weekend, with industrial output growth slowing to a five-month low in August, while retail sales and new home prices fell even more will be analysed by the market participants in the next trading session.

Global triggers

Market participants in the US eagerly await the Federal Reserve's policy decision this week slated on September 18. This is said to be the biggest event that would drive sentiments in the domestic stock market, besides a host of macroeconomic data from the global front and trading activity of foreign investors.

Along with this, investors will also keep an eye on the release of the US retail sales and industrial production for August.

In the Asia Pacific markets, this week, Japan's central bank meeting will be eyed.

Back home, investors will keep an eye out for the release of import and export data for August.

Crude oil check

On the commodity front, oil prices slipped but were above $71. Last seen, Brent crude futures were down by 0.73 per cent, to $71.65 per barrel.

Here's how analysts view today's (September 16) trading session

Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Interrmediates Ltd.

Technically, the index formed a small red candle on the daily chart. However, it managed to close above the breakout level of 25,335 on a weekly basis, indicating strength. The 21-DEMA support is currently placed near 24,980. As long as the index holds above 24,980, a “buy on dips” strategy should be adopted. On the upside, the index could test 25,500 and 25,800 in the short term.

On the daily chart, Nifty Bank has witnessed a breakout of a cup and handle pattern, indicating strength. According to this pattern, the index could test 52,800–53,000 in the short term and 53,800 in the medium term. The 21-DEMA support is currently placed near 51,220. Therefore, a “buy on dips” strategy is recommended for Bank Nifty as long as it stays above 51,220."

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

A small negative candle was formed on the daily chart with a minor lower shadow. Technically, such range movements soon after the sharp upmoves are considered as a breather pattern and they are considered as uptrend continuation patterns.

Nifty on the weekly chart moved up and has engulfed the long bear candle of the previous week, hence the bearish engulfing pattern of last week has been nullified. This is a positive action and normally such negations of a bearish pattern result in more upsides.

The short-term trend of Nifty continues to be positive. A sustainable move above 25,400 levels could pull Nifty towards the next upside of around 25,800 in the near term. Immediate support is at 25,200 levels. 

Rajesh Bhosale, Equity Technical Analyst, Angel One

Moving forward dips toward key support levels can be viewed as buying opportunities. While there are no immediate signs of weakness, the momentum oscillator RSI Smoothened has failed to surpass its previous high, signaling a '2-Point Negative Divergence' on the daily chart. With the upcoming Fed policy, booking profits at higher levels would be wise to account for potential volatility. For levels, 25,200 serves as immediate support, while Thursday's rally point of 25,000 - 24,970 is seen as strong support. On the higher side, 25,500 – 25,600 could act as resistance, as it aligns with the 'Bearish Wolfe Wave' reversal zone, followed by 25,800 being the next retracement resistance.

Traders should monitor these levels closely and set up their trades accordingly. This week also saw sector rotation, with defensive sectors performing well initially, but struggling later, while previously underperforming sectors like PSU Banks and Realty picked up. Traders should focus on identifying the right themes for outperformance opportunities.

FII, DII update: How much did FIIs, and DIIs buy or sell on September 13?

As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 2,364.82 crore. 

Likewise, the DII's were net buyers of equities worth Rs 2,532.18 crore.

Indian markets on Friday:

Benchmark equity indices, Sensex and Nifty, finished Friday's session on a flat note. BSE Sensex shed 71.77 points or 0.09 per cent to settle at 82,890.94, while the Nifty 50 ended 32.40 points or 0.13 per cent lower at 25,356.50