Stock market today: F&O rules, Dow at high again, Gala Precision IPO eyed

Stock market today: Investors will keep an eye on Gala Precision IPO, Indian auto sales numbers and other important triggers

Stock market today: The Indian share market is likely to open flat. At 7:08 AM GIFT Nifty futures were up 16.5 points at 25,413.5.

Market participants this week will eye the release of the US payroll report on Friday (September 6), as it could decide whether a rate cut expected this month will be regular or super-sized.

Further, the Bank of Canada is expected to cut interest rates twice in September.

In the Asia Pacific markets, investors will eye the release of August S&P Global Manufacturing PMI data in Indonesia and Korea. The inflation report for August will also be released in Indonesia.

 

Meanwhile, back home investors will eye the release of HSBC manufacturing PMI for August, Indian auto sales numbers for August, and market regulator Securities and Exchange Board of India's (Sebi) revisions in the F&O entry and exit regulations. Analysts suggest that many stocks could be at risk for exclusion.

Oil is down over 2 per cent
 

On the commodity front, last seen, Brent crude oil was down 2.96 per cent at $76.49.

How did US markets fare on Friday? 
 

In the US markets, Dow continued a second consecutive all-time closing high, rising 0.55 per cent. Meanwhile, the S&P 500 up 1.01 per cent, while the Nasdaq Composite rose 1.13 per cent. The US markets will be closed today on account of Labor Day.  

How are Asian markets performing today?
 

Asia-Pacific markets are trading mixed today. At the last count, Nikkei was up 0.66 per cent, and ASX 200 was down 0.41 per cent. Meanwhile, Hang Seng was unchanged and Shanghai was down 0.14 per cent

Here's how analysts view today's (September 2) trading session
 

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

A small negative candle was formed on the daily chart with minor upper and lower shadows. Technically, this indicates the formation of doji type of candle pattern at the new highs. Normally, such doji formations at the new highs alert for trend reversal, but recently few such doji formations have failed to result in any significant reversal in the market.

The short term trend of Nifty remains positive, but the market is not able to gather sharp upside momentum into new highs. One may expect further consolidation or a minor dip from near the resistance of 25300-25400 levels. Immediate support is at 25100. 

Amol Athawale, VP-Technical Research, Kotak Securities

We are of the view that, for the trend following traders now 25,000/ 80,800 would act as a sacrosanct support zone. As long as the market is trading above the same, the bullish texture is likely to continue. On the Higher side, 25350-25500 / 82800-83300 would be the crucial resistance areas for the bulls. However, below 25000/80800 uptrend would be vulnerable. Below the same traders may prefer to exit out from the trading long positions. For Bank Nifty now, 50 day SMA (Simple Moving Average) or 51550 would be the immediate resistance zone. Post 51500 breakout it could rally up to 52000-52500. On the other side, 51000 or 10 day SMA would be the key support zone. Below the same, the sentiment could change. Below it could slip till 20 day SMA or 50625 -50500.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

On the upside we expect the Nifty to target levels of 25,500. On the downside, the crucial support base is placed at 25,000 – 24,900. We shall continue to ride the upmove with a trailing stop loss mechanism.

The Nifty Bank opened on a positive note however it was unable to carry on the positive momentum. It closed on a positive note though well off the intraday highs. Overall, we expect the Bank Nifty to trade within a range of 51600 – 51000 from a short term perspective.

FII, DII update: How much did FIIs, and DIIs buy or sell on August 30?
 

As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 5,318.14 crore. 

Likewise, the DII's were net sellers of equities worth Rs 3,198.07 crore.

IPO watch today: Gala Precision Engineering, Jeyyam Global Foods opens; Travels & Rental closes 

Main Board IPO:

Gala Precision Engineering IPO will open today for subscription and will close on September 4, 2024. It is a Book Built issue and the company will raise around Rs 167.93 crore. The IPO comprises a fresh issue of Rs 135.34 crore and an offer for sale of up to 0.06 crore equity shares with a face value of Rs 10 each.

NSE, BSE SME IPOs:

Jeyyam Global Foods IPO will open for subscription today on NSE under the SME category. The IPO is a book-built issue of Rs 81.94 crore. The issue combines a fresh issue of 12.089 million shares aggregating to Rs 73.74 crore and an offer for sale of 1.34 million shares aggregating to Rs 8.19 crore.

Travels & Rental IPO's subscription window will close today. Last seen, the BSE SME IPO was trading at Rs 20 on the grey market. 

Here's how the Indian benchmark performed on Friday:

Benchmark equity indices ended at record high closing levels on Friday, fuelled by massive buying across sectors. The BSE Sensex added 231.16 points or 0.28 per cent to settle at 82,365.77. The index hit an all-time high of 82,637.03 during the intra-day trade. 

Meanwhile, Nifty50 too settled higher at 25,235.90, up 83.95 points or 0.33 per cent. The index hit an all-time high of 25,268.35 during the intra-day trade on Friday.