Indian equity markets are expected to open in the red as trends in the SGX Nifty ahead of Monday’s session hint at a flat to negative start for benchmark NSE Nifty 50 and BSE Sensex. “Indian markets have been showing resilience despite several global headwinds. While markets in the near term may remain volatile in a broader range, we are positive on the mid to long term perspective on the back of healthy domestic macros, strong fundaments, earnings growth and upbeat festive season. Broader market has been outperforming well and is likely to remain in flavour with action in niche midcap sectors.” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Also Read: Share Market LIVE: SGX Nifty hints at tepid start for Nifty, Sensex; Tamilnad Mercantile Bank IPO opens today
Nifty technical view: A small negative candle was formed on the daily chart with minor upper and lower shadows. “Technically, this pattern indicates choppy movement in the market with negative bias. Nifty on the weekly chart formed a long bull candle with an upper shadow. This pattern signal an emergence of sustainable upside from the lows of 17170 levels. The short term trend of Nifty remains choppy. The market is now placed with in a broader high low range of 17800-17300 levels and the movement within this range is likely to continue this week. One may expect selling pressure building from the highs around 17800 levels and the buying is likely to emerge from the lows of 17300 levels. Hence, the market action could be a buy on dips and sell on rise opportunity for near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: “On the technical front, the Nifty is trading in a range and formed a good base around 17450 level sustains above the same suggests strength in the counter. The support for nifty has shifted around 17450 levels while on the upside 17770 may act as an immediate hurdle. On the other hand, Bank nifty has support at 38500 levels while resistance at 40000 levels. Overall, the sector-specific movement has been observed majorly Media & FMCG stocks are looking bullish for an upcoming session. The investor can add on dips,” said Palak Kothari, Senior Technical Analyst, Choice broking.
IPO Watch: The three-day initial public offering (IPO) of Tamilnad Mercantile Bank will open for public subscription today and conclude on Wednesday, September 7. The Tuticorin-based private sector lender has fixed the price band at Rs 500-525 per share for its Rs 832-crore initial share offer. The company has mobilised a little over Rs 363 crore from anchor investors ahead of its issue. It has decided to allocate 71.28 lakh equity shares to anchor investors at Rs 510 apiece, aggregating the transaction size to Rs 363.5 crore, according to a circular uploaded on the BSE website.
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Stocks under F&O ban on NSE: The National Stock Exchange has added Delta Corp stock in F&O ban list for Monday (September 5). Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.
