Market Uptrend Continues, But Profit-Taking Expected at Higher Levels

Indian markets maintained the positive momentum of Friday and witnessed further advance on Monday. The headline NIFTY index closed up 0.57% at 25939, with an advance decline of 34/6. The broader NIFTY 500 index witnessed a positive traction of 325 advances and 174 declines. The broader index closed up 0.77%.

In sectoral indices, PSU banks gained the Bank of Maharashtra rose 8.18%, Punjab and Sind Bank advanced 5.43%, Indian Bank gained 4.91% and Bank of Baroda rose 3.67%. The NIFTY PSU bank index closed up 3.41% while Private Bank rose marginal 0.22%.  The Bank’s index NIFTY bank gained 0.58% to close at 54105, posting an intraday high of 54197. Auto index advanced with sharp gains in Mahindra and Mahindra and Bajaj Auto as both gained over 3% ahead of festive season and possible rate cuts from RBI. Barring IT, most sectoral indices closed up and IT dropped 0.51% today with heavyweight Infosys and TCS slide around half a percentage point.

Business and economic Developments

·         Astra Zeneca Pharma India Ltd on Monday said that it has received an approval from the Central Drugs Standard Control Organisation to import and distribute durvalumab (Imfinzi) for an additional indication in India.

·         Reliance Power announces ₹1,524.60 crore preferential issue at 16% discount.

·         The RP Sanjiv Goenka Group’s business process management services company said its subsidiary First source Solutions UK Ltd has acquired Ascensos, a leading UK-headquartered customer experience outsourcing partner for retail and e-commerce businesses for £42 million.

·         Coal India has signed joint venture with the Rajasthan Rajya Vidyut Utpadan Nigam Limited for setting up of 2x800 MW Brownfield Thermal Power Project

·         Bank of Baroda has launched the Bank of Baroda MakeMyTrip co-branded travel debit card in collaboration with MakeMyTrip. This marks the first co-branded travel debit card introduced by a public sector bank.

·         Mobi Kwik had refiled its papers with SEBI in Jan 2024 and got the permission to reduce the IPO size from Rs 1900 cr to Rs 700 cr.

·         Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said many more rate cuts are likely needed over the next year, rates need to come down significantly. Added, “I am comfortable with the Fed's 50 bps rate cut, it shows the Fed is focused on risks to employment, not just inflation.”

·         The Indian market regulator, SEBI released a study analysing equity F&O profit, loss for FY22-24. The study reveals that 93% of individual traders incurred losses in equity F&O between FY22 & FY24. Total 91.1% of individual F&O traders lost money in FY24, says SEBI.

Market Outlook - Index

NIFTY: The NIFTY index may find stiff resistance around 26050-26080 levels and one can initiate short assuming a stop loss above 26200. The index may some corrective move from the resistance and may see index sliding towards 25800-25750 range.

BANK NIFTY: The bank nifty has broken the ATH of 53357 and as long as its holds above the same, one can expect the short-term trend to be positive. The index has interim intraday support at 53650-700 range with immediate resistance at 54300-350 range. One can book longs near resistance and wait for a correction for longs.

NIFTY MIDCAP Select Index: The index has been a laggard and failed to catch the momentum despite NIFTY and bank NIFTY reached ATH. The index faces a stiff resistance at 13250-270 zone and if the market fails to hold above that then the index may correct back below 13200 mark. However, sustained trading above the same only may push the index towards ATH. However, we prefer to sell at resistance.

Stocks:

As per our previous recommendation in Oberoi Realty (Buy at LTP 1855, target 1950-2000 in the short term with stop loss below 1770) the stock closed at 1905, one should look forward booking profits at 1930-50 zone with trail SL below cost.     

Indian bank: Buy around 520-515 target 550 SL 490 

ONGC:  Buy around 292-293 target 305- 310 SL 286

Economic Data Calendar for September 24, 2024

The report is being prepared by Bitupan Majumdar, an independent SEBI registered research analyst with registration code INH30006962. Please consult your financial advisor before taking investment decision.

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