Powerful Market Surge: Nifty 25000 as Global Cues Fuel Optimism

Market Overview Nifty 25000

• Indian Markets: Poised for a positive start; Gift Nifty indicates a 60-point premium over the previous close.
• Global Influence: Strong global cues and dovish signals from the US Fed are expected to push Sensex and Nifty higher.
• US Fed Chair: Jerome Powell hints at potential interest rate cuts, reinforcing market expectations for policy easing.
• Asian Markets: Mixed performance; Japan’s indices declined, while South Korea’s Kospi and Kosdaq posted gains.
• US Market Rally: Tech giants like Nvidia, Tesla, and Apple led significant gains.
• Gold Prices: Continued upward trend due to increased investor interest amid a weakening dollar.
• Crude Oil: Prices edged higher due to escalating Middle East tensions, particularly after Israeli strikes in Lebanon.
• Currency and Bonds: The dollar remained near a 13-month low, with US 10-year yields also on the decline.
• Key Focus: Investors will monitor domestic and global macroeconomic data, including India’s GDP figures and foreign fund flows.
• Securities in Ban: Aarti Industries, Aditya Birla Fashion, Balrampur Chini Mills, Birlasoft, Chambal Fertilisers, GNFC, Granules, Hindustan Copper, India Cements, National Aluminium, RBL Bank, Sun TV.

Technical Analysis

Nifty

• Performance: Nifty traded in a 70-point range, marking its seventh consecutive day of gains, closing above 24,800.
• Key Levels:
• Resistance: 24,900 – 25,000 levels.
• Support: 24,700 and 24,550.
• Indicators: Positive weekly candle formation suggests potential upmove towards 25,000 – 25,100.
• Futures: Nifty August futures saw a 3.5% increase in Open Interest, trading at a premium of 142.5 points.

Bank Nifty

• Performance: Bank Nifty showed no significant movement, mirroring Nifty.
• Key Levels:
• Resistance: 51,250, with potential to move to 51,550 – 51,700 levels.
• Support: 50,650.
• Technical Indicator: A bullish crossover on the MACD signals a buy-on-dips strategy.
• Fibonacci Levels: Resistance at 51,095 and 51,517, support at 50,592 and 49,732.

Options Data

Nifty Call Options

• Max OI: 26,000 strike with 66.65 lakh contracts, acting as a key resistance.
• Significant Call Writing: At the 24,800 strike, with an addition of 21.25 lakh contracts.
• Call Unwinding: Maximum at the 24,500 strike, shedding 1.03 lakh contracts.

Nifty Put Options

• Max OI: 24,000 strike with 81.99 lakh contracts, acting as a key support.
• Significant Put Writing: At the 24,800 strike, with an addition of 23.94 lakh contracts.
• Put Unwinding: Maximum at the 24,600 strike, shedding 82,925 contracts.

Stocks in the News

• ONGC: Commenced production from its fifth oil well in the KG-DWN-98/2 Cluster-2 asset; commissioned gas export line.
• Transport Corporation of India: Approved buyback of 13,33,333 shares worth Rs 159 crore at Rs 1,200 per share.
• Alembic Pharmaceuticals: Received US FDA approval for Betamethasone Valerate foam for scalp skin conditions.
• Ashoka Buildcon: Emerged as the lowest bidder for a Rs 478 crore project from MMRDA.
• Zydus Lifesciences: Signed a 50:50 joint venture with Perfect Day Inc. to produce fermented animal-free protein.
• Bharat Electronics and Trent: To be included in Nifty 50, effective September 30.
• Uno Minda: Opened a new manufacturing plant in Rajasthan with an annual capacity of 3,84,022 units per month.
• JSW Energy: Subsidiary received a Letter of Award for a 250 MW wind power project from Adani Electricity Mumbai.
• KEC International: Secured new orders worth Rs 1,079 crore in T&D and cables businesses.
• FDC: US FDA inspection of the Baddi facility concluded with zero Form 483 observations.
• Bharat Dynamics and Cochin Shipyard: Added to the FTSE All World Index, effective September 23.
• Karur Vysya Bank: SBI Mutual Fund received RBI approval to acquire a 9.99% stake in the bank.

Regulatory Alerts

• Dr. Reddy’s Laboratories: US FDA issued Form 483 with three observations for its Srikakulam manufacturing facility.
• Religare Enterprises: ED conducted searches at company premises; ESOP shares of Care Health Insurance frozen.

FAQs:

Q1: What factors are driving the positive sentiment in the Indian markets today?
A1: Strong global cues, dovish signals from the US Fed, and a rally in US tech giants are driving positive sentiment in Indian markets.

Q2: What are the key resistance and support levels for Nifty?
A2: Nifty faces resistance at 24,900 – 25000 levels, with support at 24,700 and 24,550 levels.

Q3: Which stocks are in focus today?
A3: ONGC, Transport Corporation of India, Alembic Pharmaceuticals, and Zydus Lifesciences are among the stocks in the news due to significant developments.

Q4: What is the significance of the Nifty 25000 level?
A4: Nifty 25000 level is a significant psychological milestone for Nifty, indicating strong bullish sentiment and potential for further gains.

Q5: What is the outlook for Bank Nifty?
A5: Bank Nifty has resistance at 51,250, with potential movement towards 51,550 – 51,700 levels. A bullish crossover on the MACD suggests a buy-on-dips strategy.

Conclusion:

The Indian markets are set for a strong start, buoyed by global optimism and positive technical indicators. As Nifty approaches the crucial 25,000 level, investors should remain watchful of key resistance and support levels while staying tuned to further developments in both domestic and global markets.

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.

Also Read : Mastering Best Option Trading: Unleashing the Power of PCR Ratio in Nifty and Bank Nifty.