Market today: US Fed policy, India's WPI, P N Gadgil listing on radar

Market today: US Fed policy decision, India's WPI, and P N Gadgil Jewellers IPO listing will be triggers for investors to watch out for

Market today: Indian benchmark indices-- Sensex and Nifty-- are likely to edge higher after hitting record highs in the previous session. At around 6:57 AM, GIFT Nifty futures were up 47.75 points at 25,490.5.

Investors in India will keep an eye out for the release of Wholesale Price Index (WPI) inflation and manufacturing data for August, along with import and export data for August.

Global triggers

Globally, market participants 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. Most analysts are expecting a 25 basis point rate cut. READ MORE

 

Besides, a host of macroeconomic data from the global front and trading activity of foreign investors will be eyed. Today, US retail sales and industrial sales data for August will be released.

In the Asia Pacific markets, Indonesia's import and export data for August, and Singapore's unemployment data for Q2 will be declared today.
 

US markets' performance on Monday
 

Ahead of the Federal Reserve policy decision this week, the US markets closed mixed. The S&P 500 ended with gains in a subdued session while the Nasdaq Composite fell, dragged by a drop in technology stocks as investors assessed the likelihood of an upsized rate cut from the US Fed this week.

The Dow Jones closed 0.55 per cent higher, followed by the S&P 500 finishing 0.13 per cent higher. Meanwhile, the Nasdaq lost 0.52 per cent.

Asian markets performance today
 

After the trading holiday in China, Japan, South Korea, and Indonesia on Monday, the Asia-Pacific markets started on a mixed note.

At the last count, ASX 200 gained 0.24 per cent, and Nikkei was down 0.65 per cent. Meanwhile, Hang Seng was unchanged, whereas Shanghai was down 0.48 per cent.

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 today's trading session.

Crude oil check
 

On the commodity front, last seen, Brent crude futures were up by 0.19 per cent, to $72.89 per barrel.

Here's how analysts view today's (September 17) trading session

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
 

On the daily charts we can observe that after the sharp upmove on Sept 12, the index has been in the process of consolidating the gains. The consolidation is likely to continue for a couple of trading sessions. Stock specific action is likely to continue during this phase. The undertone is bullish, and it is likely to resume its upmove once the consolidation phase is complete. The upside is likely towards 25,500 - 25,700. Support is placed in the zone of 25,200 – 25,150.

Nifty Bank clearly has been leading the upmove with contributions starting to come in from the key heavyweights of the index. The upmove is likely to continue towards 52,565 and the support base now shifts upwards to the 51,800 – 51,700 zone.

Shrikant Chouhan, Head of Equity Research, Kotak Securities
 

A small bearish candle on daily charts and range bound activity on intraday charts indicate indecisiveness between the bulls and the bears. We are of the view that the larger texture of the market is bullish but we could see a range bound activity in the near future. For the traders now, 25,350 and 25,300/82,900-82,700 would be the key support zones while 25,500-25,575/83,300-83,600 would act as key resistance areas. However, below 25,300/82,700  the sentiment could change. Below the same, traders may prefer to exit from the trading long positions.

Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth
 

Nifty continued to consolidate for the second day in a row in a narrow band. On the higher side, aggressive call writing has been seen at the 25,500 strike option which will act as an immediate and strong resistance zone for the index and move towards those levels will be used by traders to book profits in trading long positions. However, the overall short term structure for the index remains bullish, and a dip towards 25,280/24,160 can be used as a buying opportunity.

Short term structure remains strong and Nifty Bank is expected to test 52,480/52,800. On the lower side, the index will find support around 51920 /51800 levels and any dip towards those levels can be used to add fresh longs.

IPO watch today: PN Gadgil, Paramount Speciality Forgings, and others in focus

Main Board IPO:

Shares of P N Gadgil Jewellers Ltd will be listed on the bourses today. The shares will be listed on NSE and BSE. P N Gadgil Jewellers IPO was a book built issue of Rs 1,100 crore. The issue combined a fresh issue of 17.7 million shares aggregating to Rs 850 crore and an offer for sale of 5.2 million shares aggregating to Rs 250 crore.

NSE, BSE SME IPOs:

Paramount Speciality Forgings Ltd IPO will open for subscription today on NSE SME.

Conversely, Sodhani Academy of Fintech Enablers Ltd IPO will close for subscription on BSE SME today.

Meanwhile, Shares of SPP Polymer Ltd and Trafiksol ITS Technologies Ltd will be listed on NSE SME and BSE SME respectively.

FII, DII update: How much did FIIs, and DIIs buy or sell on September 16?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 1,634.98 crore. 

Conversely, the DII's were net buyers of equities worth Rs 754.09 crore.

Indian markets on Monday:
 

Benchmark equity indices-- Sensex and Nifty50 ended Monday’s choppy session in positive territory. The 30-share Sensex added 97.84 points, or 0.12 per cent, at 82,988.78. Meanwhile, the NSE Nifty50 settled at 25,383.75, up 27.25 points or 0.11 percent on Monday. The index had hit an all-time high of 25,445.70 levels during the intra-day trade.