It has been a while since the Nifty 50 has seen two back-to-back sessions where sentiments have been positive. Dips are getting bought into, resistances are becoming supports and heavyweights, at least some of them, are putting their hand up to ensure that the index sustains at higher levels.

Share Market Live

NSE

The Nifty 50 has now gained 270 points over the last two sessions. The last instance of the index gaining more than 200 points in two sessions was back in May this year. For Monday's move, it has the IT stocks to thank, along with HDFC Bank, which has been a drag on the index for the last few sessions.

Monday's close is the first time in nearly a month that the index has closed above 19,500. The last time that happened was back on August 10.

"Nifty 50 continues to stay in the bullish territory as it has maintained its position above the channel breakout level," said Rupak De of LKP Securities. He expects the trend to remain positive as long as the index remains above 19,525, which can trigger a potential move higher towards levels of 19,750.

Nagaraj Shetti of HDFC Securities believes that a decisive move above levels of 19,600 can take the Nifty 50 towards levels of 19,800 - 19,900 in the near-term. The earlier resistance around levels of 19,430 will now act as an immediate support zone for the index.

Despite some aid from HDFC Bank, the Nifty Bank turned out to be an underperformer on Monday. That is also because other heavyweight banks like Axis Bank, Kotak Mahindra Bank and ICICI Bank found themselves on the losing end. However, the index managed a close above 44,500. That last instance that happened was incidentally, on August 10 as well.

The 44,300 - 44,200 zone will act as a safety net for the bulls now, said Kunal Shah of LKP Securities, adding that the next obstacle for the banking index is the 44,600 - 44,650 zone. A successful break above that will pave the way for the index to move towards 45,000, where there is substantial Open Interest on the call side.

Rajesh Bhosale of Angel One said that the 44,800 - 45,000 will be a closely monitored range for the Nifty Bank as a sustained move above these levels can take the index towards levels of 45,600 - 45,800. He advises considering intraday dips as a buying opportunity.

Monday belonged to the railway stocks by a distance. IRFC stands out among all of them. The stock ended 20 percent higher, taking its overall market capitalisation to nearly Rs 90,000 crore. This is higher than other larger railway players like IRCTC, Container Corporation and other peers. The stock will be in focus on Tuesady as well owing to some negative newsflow regarding its former CMD. Read more on IRFC here.

"You have to be careful about the multiples. At this stage, I would not be very comfortable rushing into buy these companies, but then that is pretty much true for more or less entire market, because the market itself is trading at a valuation. I find it difficult to find stocks in the largecap, which can justify a significantly higher prices from where we are," Anand Tandon, Market Expert said.

What Are The F&O Cues Indicating?

Nifty 50's September futures shed 0.4 percent and 37,650 shares in Open Interest. They are now trading at a premium of 80 points, compared to 76.8 points earlier. On the other hand, Nifty Bank's September futures shed 5.7 percent or 1.24 lakh shares in Open Interest. Nifty 50's Put-Call Ratio is now at 1.37 from 1.3 earlier.

Balrampur Chini, BHEL, Hindustan Copper and India Cements are in the F&O ban list from Tuesday's session. Indiabulls Housing Finance continues to remain in the ban list.

Nifty 50 on the Call side for September 7 expiry:

For this Thursday's expiry, the Nifty 50 call strikes between 19,550 and 19,700 have seen Open Interest addition. The 19,700 strike has seen the highest Open Interest addition.

Nifty 50 on the Put side for September 7 expiry:

For this Thursday's expiry, Nifty 50's put strikes between 19,400 and 19,500 have seen Open Interest addition.

Lets take a look at the stocks that added fresh long positions on Monday, meaning an increase in price and Open Interest:

Lets take a look at the stocks that added fresh short positions on Monday, meaning a decrease in price but increase in Open Interest:

Here are the stocks to watch out for ahead of Tuesday's trading session:

Hero MotoCorp: The company's board has approved an investment of up to Rs 550 crore in the rights issue of Aether Energy. Aether is an existing associate of the company, engaged in the manufacturing and selling of electric two-wheelers.

Cipla: South African unit Cipla Medpro South Africa acquires Actor Holdings for $48.6 million. Actor Pharma is a privately owned pharma company in South Africa, specialising in consumer health and generic medicine.

IEX: August total electricity volume up 21 percent at 8,469 million units. August day ahead market volume up 7.3 percent at 3,810 million units. August market clearing price up 33 percent at Rs 6.89 per unit.

Escorts Kubota: To raise prices of all tractors from September 16, 2023 and this price increase would vary across models or variants & geographies.

Tata Power: Signs power delivery agreement for 26 MW AC Group captive solar plant with Neosym Industries.

Ramco Cements: Commissions the balance 3 MW of waste heat recovery system at its Kolimigundla plant. With this, the total operating capacity of waste heat recovery system goes up to 43 MW.

Tata Steel: Issues clarification on reports that the company is securing funds for its UK plant. Says discussions with the UK government and other relevant stakeholders are ongoing.

Oil India: Board approves equity contribution of Rs 1,738 crore in Joint Venture North East Gas Distribution Co. Ltd. Oil India will hold 49 percent stake in the JV, while the rest will be held by Assam Gas Company Ltd.

What Are Global Cues Indicating?

Asian markets have opened lower ahead of Australia's central bank decision, along with inflation data awaited from other parts of the region.

The Nikkei 225 and Topix are trading below the flat line, while the Kospi is down 0.2 percent. Investors will also look forward to PMI readings from China, India (Services) and Hong Kong.

Futures of the Hang Seng are also pointing to a weak start to the trading day. US markets were shut on Monday due to the Labor Day holiday.

Foreign investors returned to being net sellers in the cash market on Monday, while domestic investors were net buyers.

Ashwin Ramani of SAMCO Securities said that the Nifty 50 index has formed a doji pattern on the daily chart, signalling some bit of indecision. He added that a break above Monday's high of 19,545 can take the index towards 19,600.

The immediate resistance for the Nifty 50 is seen at 19,600, followed by the bearish gap of 19,680 - 19,700, said Angel One's Osho Krishnan. On the downside, 19,400 becomes the first support. He advises buying the declines to be an apt strategy in the coming period.

First Published:Sept 4, 2023 8:38 PM IST