Indian share market may open higher on week’s last trading day. Ahead of today’s session, SGX Nifty hinted at a positive start for benchmark indices BSE Sensex and NSE Nifty 50. Nifty futures on the Singapore Exchange traded 87 points, or 0.49% higher at 17,675. “The recent move in Nifty indicates consolidation after the phenomenal gains and we expect the trend to continue. Meanwhile, volatility would keep the participants on their toes. In absence of any major domestic event, the performance of global indices will remain on the radar for cues. We thus recommend focusing more on position management and preferring stocks from the defensive basket,” said Ajit Mishra, VP – Research, Religare Broking.
Global market watch: Wall Street ended sharply higher on Thursday, lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserve’s Jackson Hole conference for clues about the central bank’s policy outlook. European markets closed slightly higher; the pan-European Stoxx 600 index ended the day up 0.3%. Asia Stocks rose on Friday as a rally in a US gauge of Chinese shares aided sentiment, while the dollar ticked up before Powell’s speech that is set to shape views on monetary tightening. Bourses in Japan, Australia and South Korea were in the green. US futures fluctuated after climbs in the S&P 500 and Nasdaq 100 on Thursday.
Nifty technical view: “A long bear candle was formed on the daily chart and the market reacted down from the hurdle of 17700 levels. Though, Nifty declined from the highs today, the overall market breadth was positive and the broad market indices like midcap and small cap were showing resilience. The sharp intraday weakness of Thursday could be a worrying factor for the bulls to sustain the highs. As long as Nifty sustains above the supports of 17300-17200 levels, there is a possibility of an upside bounce from the lower levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch out for: Technically, lower top formation on intraday charts and bearish trend reversal candle on daily charts is indicating further correction from the current levels. “In the short term, 17700 would be the key resistance zone and below which, the Nifty could slip till 17400-17300. On the flip side, a fresh uptrend is possible only after 17700. Above the same, the index would move up to 17800-17850,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Palak Kothari, Senior Technical Analyst, Choice Broking said, “Bank nifty has support at 38500 levels while resistance at 39500 levels. Overall, Sector specific momentum can be seen as the PSU Bank & Reality stocks are looking good for the upcoming session.”
IPO watch: Syrma SGS Technology share will debut on share market today (26 August). Company’s Rs 840-crore IPO was oversubscribed 32.61 times earlier this month. This was the first company in over two months to hit the market with an IPO. The IPO shares were sold at a price band of Rs 209-220. In the grey market on Thursday, Syrma SGS Tech shares were seen quoting at a premium of Rs 54. The offer received bids for 931.4 million equity shares as against 28.5 million shares on the offer.
Also Read: Asia stocks up ahead of Powell’s Jackson Hole address as China rally aids mood; Gold prices fall, crude rises
FII and DII data: Foreign institutional investors (FIIs) were net buyers on Thursday as they new bought equities worth Rs 369.06 crore, while domestic institutional investors (DIIs) were net sellers as they offloaded shares worth Rs 334.31 crore on August 25, according to the provisional data available on the NSE.
