Table of Contents
Indian Market Expected to Open Lower
- Global Influence: Weak global trends contributing to a lower opening.
- Asian Markets:
- Japan’s Nikkei: Flat
- Topix: Fell 0.23%
- South Korea’s Kospi: Dropped 0.7%
- Hong Kong’s Hang Seng: Indicates a flat opening
US Market Overview
- US Stocks:
- Closed lower
- Focus on Alphabet and Tesla Q2 results
- Tesla shares fell 8% after disappointing earnings
Indian Market Performance
- Sensex: Fell by 73 points (0.09%) to 80,429.04
- Nifty 50: Dropped 30 points (0.12%) to 24,479.05 after Budget 2024 announcements
Indian Market Union Budget Highlights
- Emphasis on employment, skilling, and infrastructure investment
- Fiscal targets: 4.9% in FY25, 4.5% in FY26
Japan’s Economic Activity
- Factory activity: Contracted in July
- Service sector: Expanded
- Composite PMI: Rose to 52.6
Commodity Prices
- Crude Oil:
- Brent crude futures: Up 0.54% to $81.45 per barrel
- US West Texas Intermediate crude: Up 0.49% to $77.34 per barrel
- Gold Rates:
- Spot gold: $2,409.66 per ounce
- US gold futures: $2,410.50
Currency Market
- US Dollar Index: Remains strong
- Dollar/Yen: Fell nearly 1%
- China’s Yuan: Steady
- Euro and Sterling: Firm
Indian Market Securities in Ban Period
- GNFC
- India Cements
- Sail
Nifty Analysis in Indian Market
- Post-Budget Movement: Nifty saw a dip but recovered swiftly, closing just below the 24,500 mark.
- Sector Performance:
- FMCG sector led the recovery
- Top gainers: ITC, Titan, Tata Consumer Products
- ITC: Boost due to no changes in tobacco tax, nearing the ₹500 mark
- Support and Resistance Levels:
- Immediate support: 24,200 and 24,000
- Resistance: 24,700 – 24,800
- Short-Term Trend: Negative with high volatility, potential upside above 24,650 – 24,700
Bank Nifty Analysis in Indian Market
- Performance: Dropped over 500 points
- Major Laggards: HDFC Bank, ICICI Bank
- Technical Pattern: Formed a lower top, lower bottom pattern, indicating weakness
- Support and Resistance Levels:
- Key resistance: 52,000 and 52,500
- Support: 51,200 and 51,000
- Slipped below the 21-Day Exponential Moving Average
- Resistance band: 52,100 – 52,550
- Support band: 51,200 – 51,000
- Upcoming Focus: Axis Bank results and monthly options expiry
Nifty Call Options Data
- Key Resistance: 25,000 strike with the highest open interest (1.12 crore contracts)
- Significant Call Writing: At 25,000 strike (44.05 lakh contracts added)
- Call Unwinding: Major unwinding at 23,900 strike (1.11 lakh contracts)
Nifty Put Options Data
- Key Support: 24,000 strike with the highest open interest (81.97 lakh contracts)
- Significant Put Writing: At 23,900 strike (23.41 lakh contracts added)
- Put Unwinding: Major unwinding at 23,600 strike (17.63 lakh contracts)
Conclusion in Indian Market
Despite a cautious start influenced by weak global trends and mixed Asian market performance, the Indian stock market is poised for potential recovery. The recent Union Budget highlights a strong focus on employment, skilling, and infrastructure investment, which could drive future market optimism. Notable movements in key sectors, such as FMCG, and the resilience in commodity prices, particularly crude oil and gold, offer promising signs. While short-term volatility persists, particularly in the Nifty and Bank Nifty indices, strategic support and resistance levels provide a roadmap for investors. As corporate results and economic indicators unfold, the market is well-positioned for a calculated recovery.
FAQs in Indian Market
Q1: What are the key factors influencing the lower opening of the Indian stock market?
A1: Weak global trends and mixed performances in major Asian markets are contributing to the lower opening of the Indian stock market.
Q2: How did the US market’s performance impact Indian markets?
A2: The US market closed lower, with a significant focus on Alphabet and Tesla’s Q2 results. Tesla shares dropped 8% after disappointing earnings, which added to the cautious sentiment globally.
Q3: What are the highlights of the Union Budget 2024?
A3: The Union Budget emphasizes employment, skilling, and infrastructure investment, with fiscal targets of 4.9% in FY25 and 4.5% in FY26.
Q4: What are the current support and resistance levels for Nifty?
A4: For Nifty, immediate support levels are at 24,200 and 24,000, while resistance levels are at 24,700 – 24,800. The short-term trend is negative with high volatility but shows potential for upside above 24,650 – 24,700.
Q5: What are the significant movements in the Bank Nifty index?
A5: The Bank Nifty index dropped over 500 points, forming a lower top, lower bottom pattern, indicating weakness. Key resistance levels are at 52,000 and 52,500, while support levels are at 51,200 and 51,000.
Q6: What commodities are seeing notable price movements?
A6: Brent crude futures are up 0.54% to $81.45 per barrel, and US West Texas Intermediate crude is up 0.49% to $77.34 per barrel. Gold rates are also firm, with spot gold at $2,409.66 per ounce and US gold futures at $2,410.50.
Q7: Which securities are in the ban period?
A7: GNFC, India Cements, and Sail are currently in the ban period.
Q8: What are the key trends in Nifty call and put options data?
A8: In Nifty call options, the 25,000 strike has the highest open interest, indicating significant resistance. In Nifty put options, the 24,000 strike has the highest open interest, providing key support.
Must Read – Top 5 Best Indicators for Options Trading in India
Disclaimer:
The information provided in this blog post is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a qualified financial advisor before making investment decisions.
