Share Market Today: Reliance 2024 AGM eyed; Asia dips after Nvidia results

Share market today, August 29, 2024: Indian equities are expected to open lower; US GDP, Reliance Industries (RIL) 2024 AGM, Premiere Energies IPO on radar

Stock market today, Thursday, August 29, 2024: Domestic benchmark indices are likely to open lower, tracking weakness in global markets amid an unethusiastic forecast by Nvidia. At 7:34 AM GIFT Nifty futures were down 54.5 points at 25,000.5.

Back home, investors will look out for Reliance Industries' (RIL) annual general meeting (AGM) as D-Street expects big announcements related to demergers and listing. Along with this, investors will also analyse RIL getting a nod from the Competition Commission of India (CCI) for a merger with Disney.

That apart, the monthly derivatives expiry for the August F&O series will also sway market movement.

 

Further, internationally, Federal Reserve Bank of Atlanta President Raphael Bostic's statement that it may be "time to move" on rate cuts can boost positive sentiment. The second estimate for the US Q2 GDP report, slated to be released today, will also be on market participants' radar. 

In the Asia - Pacific markets, UBS, on Wednesday, cut its 2024 GDP growth forecast for China to 4.6 per cent from 4.9 per cent which may weigh on investors' minds.

On the commodity front, last seen, Brent crude oil was up 0.10 per cent at $78.73.

How did the US Market fare on Wednesday?

The US markets closed lower on Wednesday, with the S&P 500 finishing down 0.60 per cent, while the Nasdaq Composite up 1.12 per cent. The Dow Jones Industrial Average slipped 0.39 per cent.

How are Asian markets performing today?

Stocks in Asia slipped as Nvidia Corp. earnings lacked the wow factor to impress investors, while Chinese results helped extend a selloff in the country's tech companies.

MSCI's Asia-Pacific gauge declined 0.5 per cent, dragged by chipmakers Taiwan Semiconductor Manufacturing Co. and SK Hynix Inc. A gauge of Chinese tech stocks fell more than 2 per cent in Hong Kong. Nvidia slumped more than 8 per cent in post-market trading following a sales forecast that disappointed some on Wall Street.

Japan's Nikkei shed 0.45 per cent, Australia's ASX200 0.6 per cent, and South Korea's Kospi 0.78 per cent.

Here's how analysts view today's (August 29) trading session

Nagaraj Shetti, Senior Technical Research Analyst HDFC Securities

A reasonable positive candle was formed on the daily chart that has surpassed the previous down gap hurdle of Aug 5 around 24700 levels. Another hurdle of daily 10- and 20-day EMA has also been taken out on the upside.

The short term trend of Nifty continues to be positive with range bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24960. Hence, one may expect Nifty to move towards 24960 and 25100 levels in the next week. Immediate support is placed at 24650 levels.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty continues to exhibit confusion at higher levels, as the index closed flat with wicks on both the upper and lower sides, indicating extended indecisiveness. This is highlighted by two consecutive doji-like candles following the recent rally on the daily timeframe. A decisive move above 25,100, or a close above this level, could confirm a further rally in the market. Otherwise, Nifty may slip lower, as the absence of sustained buying might trigger selling pressure. The immediate support is placed at 24,800.

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 25078. 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 24960- 24855. On the upside, the immediate hurdle is placed at 25200 – 25250.

The Nifty Bank surpassed the previous day's high however it is unable to sustain and thus there can be more consolidation before it resumes a decisive move on the upside. In terms of levels, 50950 – 50850 shall act as a crucial support zone while 51500 – 51600 is the immediate hurdle zone.

FII, DII update: How much did FIIs, and DIIs buy or sell on August 28?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 1,347.53 crore. 

Likewise, the DII's were net buyers of equities worth Rs 439.35 crore.

IPO watch: Premier Energies, Jay Bee Laminations, Vdeal System, and Indian Phosphate to close, Travels & Rentals to open

Main Board IPO:

The initial public offer (IPO) of Premier Energies Limited will close for subscription today. According to the data, the investors made bids for 23,31,07,017 equity shares, or 5.22 times, compared to the 4,46,40,825 equity shares offered for the subscription by 2.45 pm on Wednesday, August 28. The three-day bidding for the issue will conclude on Thursday, August 29.

NSE, BSE SME IPOs:

Travels & Rentals Limited IPO will open for subscription today on BSE under the SME category. The IPO is worth Rs 12.24 crore and the issue is entirely a fresh issue of 30.6 lakh shares.

Jay Bee Laminations IPO, Vdeal System IPO, and Indian Phosphate Limited IPO will close for subscription today on NSE under the SME category.

Here's how the Indian benchmark performed on Wednesday:

India's NSE Nifty 50 index came off a record high on Wednesday, as profit booking across many sectors capped gains in information technology stocks, which were lifted by expectations of an imminent rate cut in the United States.

The benchmark index rose as much as 0.45 per cent to an all-time high of 25,129.6 points earlier in the session but settled 0.14 per cent higher at a record closing high. The S&P BSE Sensex rose 0.09 per cent to end at 81,785.56.