Share market today: Dow hits record, Nifty at 25k, Premier Energies IPO

Share Market Today, Tuesday, Aug 27: Japanese producer prices, and trade figures from Hong Kong and Thailand, Brent crude oil prices, IPOs, Nifty levels and other key triggers to watch today

Share market today: Indian shares are likely to open lower, indicated GIFT Nifty futures. At around 6:42 AM, GIFT Nifty futures were down 37.5 points at 25,007.5.

On Tuesday, market participants will follow global cues and determine whether the upcoming US interest rate cuts will be benign and in tandem with a "soft landing".

Nearer home, investors will keep an eye on Japanese producer prices, and trade figures from Hong Kong and Thailand.

Oil on the boil

That apart, in the commodities market, Brent crude oil prices, which topped $81 per barrel on Monday, will be on investors' radar today. 

 

Yesterday oil futures gained 3 per cent, clocking its best day in two weeks, amid reports of a production halt in Libya and after Israel and Hezbollah traded a barrage of strikes across the Lebanon border.

How did Wall Street perform on Monday?

The US markets were mixed on Monday, with the S&P 500 finishing down 0.32 per cent, while the Nasdaq Composite up 0.85 per cent. The Dow Jones Industrial Average rose 0.16 per cent, hitting a new record high.

How are Asian markets trading today?

Asia-Pacific markets were also mixed this morning. At the last count, Nikkei was down 0.13 per cent, Kospi was flat with a negative bias, and ASX 200 was up 0.10 per cent. Meanwhile, Hang Seng and Shanghai were unchanged.

Here's how analysts view today's (August 27) trading session

Shrikant Chouhan, Head Equity Research, Kotak Securities

For the trend-following traders now, 24900/81300 would be the trend decider level. Above the same, the market could continue the positive momentum till 25125-25200/82000-82600. On the flip side, below 24900/81300 uptrend would be vulnerable. Below the same, traders may prefer to exit from the trading long positions.

Rupak De, Senior Technical Analyst, LKP Securities

On the daily chart, a visible green candle has formed after two consecutive negligible red candles, suggesting improving sentiment. However, resistance is evident at 25,080, and a decisive move is needed to witness a rise toward 25,300. On the other hand, failure to move above 25,080 might trigger selling in the market, potentially bringing the index back toward 24,800.

Rajesh Bhosale, Equity Technical Analyst, Angel One

At the start of the August series, prices faced volatility with significant corrections and bearish gaps. However, as the series concludes, prices have staged a strong recovery, approaching their all-time highs. Today's bullish move, marked by a gap up, suggests that prices might soon enter uncharted territory. Traders should maintain a positive outlook and consider any dips as buying opportunities.

Bhosale added the gap around 24850 now serves as immediate support followed by 24600 as key support, while resistance is expected around 25100 and 25400, with the 100-point interval (rounded-off) potentially acting as resistance due to the monthly expiry. Unlike the end-of-July rally, current indicators are not in the overbought zone, signaling the potential for further upside but also showing negative divergence. Hence, traders should avoid being complacent and use a selective approach.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty Bank is witnessing the pullback facing stiff resistance at the downward sloping trend line on the daily charts which is placed around 51200 levels. The upmove can continue till 50650 is not breached on the downside and should be kept as a stop loss from a short term perspective.

FII, DII update: How much did FIIs, and DIIs buy or sell on August 26?

As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 483.36 crore. Likewise, the DII's were net buyers of equities worth Rs 1,870.22 crore.

IPO watch: Premier Energies, Paramatrix Technologies, Jay Bee Laminations, Vdeal System opens; Rapid Multimodal Logistics closes

Main Board IPO:

The initial public offer (IPO) of Premier Energies Limited will open for subscription today. The IPO is worth Rs 2,830.4 crore. The issue is a combination of a fresh issue of 2.87 crore shares aggregating to Rs 1,291.4 crore and an offer for sale of 3.42 crore shares aggregating to Rs 1,539 crore.

NSE,BSE SME IPOs:

Three NSE SMEs will open for subscription today, while one BSE SME IPO will close.

Firstly, Paramatrix Technologies' IPO will open for subscription today on NSE under the SME category. The IPO is worth Rs 33.84 crore and is a combination of a fresh issue of 27.59 lakh shares aggregating to Rs 30.35 crore and an offer for sale of 3.18 lakh shares aggregating to Rs 3.50 crore.

Secondly, Jay Bee Laminations' IPO window will close for subscription today on NSE under the SME category. The IPO is worth Rs 88.96 crore with a combination of fresh issue of 45.7 lakh shares aggregating Rs 66.72 crore and an offer for sale of 15.23 lakh shares aggregating Rs 22.24 crore.

Lastly, Vdeal System's IPO will open today on NSE under the SME category. The IPO is worth Rs 18.08 crore and the issue is entirely a fresh issue of 16.14 lakh shares.

Conversely, Rapid Multimodal Logistics' IPO subscription window will close today on BSE under the SME category. The IPO is worth Rs 8.49 crore. The issue is entirely a fresh issue of 10.11 lakh shares.

Here's how the Indian benchmark performed on Monday:

The benchmark indices Sensex and Nifty witnessed a promising uptrend rally, the Nifty ended 187 points higher while the Sensex was up by 612 points. Among Sectors, IT outperformed and rallied over 1 per cent whereas intraday profit bookings were seen in selective PSU banks and healthcare stocks.