Stock Market Today: Nifty expiry, Israel conflict & Kalana Ispat IPO debut

Share market today, Thursday, Sept 26: Indian equity benchmark indices, NSE Nifty50 and BSE Sensex, may start on a positive note today after hitting fresh record highs on September 25.

The uptrend was signalled by GIFT Nifty futures that were trading about 50 points higher than Nifty futures' last close, at 26,047.50, around 7:30 AM. 

Further momentum could be derived from the record highs S&P 500 and Dow Jones hit overnight on Wall Street, before closing lower.  

On Wednesday, the BSE Sensex reversed early losses and surged to new peaks, closing up 255.83 points or 0.30 per cent at 85,169.87, after hitting an intraday peak of 85,247.42. 

 

Similarly, the Nifty50 reached an all-time high of 26,032.80 before ending the session with gains of 63.75 points or 0.25 per cent at 26,004.15. 
 

Wall Street update

In the US, both the Dow Jones Industrial Average and S&P 500 pulled back from their record highs, with the Dow falling 0.7 per cent and the S&P 500 declining by 0.19 per cent. The Nasdaq Composite, meanwhile, managed a slight gain of 0.04 per cent.

Asia-Pacific markets

In Asia, Japan’s Nikkei 225 rose 1.7 per cent, and the broader Topix gained 1.2 per cent, following the Bank of Japan's release of minutes from its July meeting. South Korea’s Kospi also saw a considerable jump of 1.7 per cent, while Australia’s S&P/ASX 200 soared 0.68 per cent.

Geopolitical concerns

Global geopolitical tensions, particularly in the Middle East, will be closely monitored. Recent Israeli strikes have led to major casualties in Lebanon, escalating conflicts between Israel and Hezbollah. This ongoing situation is likely to impact market sentiment, particularly crude prices and supply chain focused sectors.

Other triggers

Today, US economic indicators such as the final Q2 GDP growth rate, pending home sales, and initial jobless claims will be on investors' radar. In the Asia-Pacific region, Singapore’s industrial production figures for August are also on the tap.

IPOs and Expiry

Back home, the monthly derivative expiry for Nifty50 will attract attention. Several IPOs, including Kalana Ispat Limited (SME), will list today, while many IPOs, including Divyadhan Recycling Industries Limited (SME), Sahasra Electronics Solutions Limited (SME), Forge Auto International Limited (SME), Diffusion Engineers Limited (Mainline), and Nexxus Petro Industries Limited (SME) will open for subscription today.

Meanwhile, KRN Heat Exchanger and Refrigeration Limited (Mainline), TechEra Engineering Limited (SME), Unilex Colours and Chemicals Limited (SME), and Thinking Hats Entertainment Solutions Limited (SME) will enter the second day of their subscription periods.

Market activity 

Foreign Institutional Investors (FII)  offloaded shares worth Rs 973.94 crore, while Domestic Institutional Investors (DII) bought shares worth Rs 1,778.99 crore on Wednesday, September 26, 2024. 

Commodities check

Oil prices have dropped over 2 per cent amid easing supply concerns in Libya, with Brent crude settling at $73.46 a barrel and US West Texas Intermediate at $69.69. 

On a similar note, Gold prices edged down slightly after hitting a record high, now trading at $2,652.99 per ounce.

Here's how analysts are assessing today's (September 26) trading session:

Hrishikesh Yedve, AVP of technical and derivatives research at Asit C Mehta Investment Intermediates 

The index is nearing a breakout above the upper trend line resistance around the 26,000 level. If it maintains this level, it could reach 26,200. Conversely, 25,800 will act as short-term support. A buy-on-dips strategy is advisable for Nifty in the near term.

Shrikant Chouhan, head of equity research at Kotak Securities

Intraday charts show a higher bottom formation, indicating continued upward momentum. For trend-following traders, support levels at 25,875 and 84,750 are critical. If these hold, the market could rally to 26,100-26,150 and 85,500-85,700. 

However, if the index falls below these support levels, sentiment may shift, potentially retesting 25,800-25,775 and 84,500-84,300.

Ajit Mishra, SVP of research at Religare Broking
 

We maintain a bullish outlook amidst ongoing consolidation and stress upon the importance of stock selection based on sector trends. There’s strong momentum in metal and power stocks, while the current correction in IT presents a buying opportunity. Traders should strategise their positions accordingly.