The Nifty failed to hold on to 18,000 levels on Thursday and closed with a bearish candle on the daily charts. This was the second consecutive day when Nifty50 closed in the red, but on Thursday, the closing level was lower than the opening one, which led to the formation of a bearish candle. Even though the index failed to hold on to 18,000, it still managed to close above the crucial support above 17,800, a positive sign for the bulls. The index closed 126 points lower at 17,877, while the S&P BSE Sensex was down 412 points to close at 59,934 on Thursday.
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Wall St opens lower as rate worries linger
Wall Street’s main indexes opened lower on Thursday as a slew of economic data pointed to resilience of the U.S. economy, likely keeping the Federal Reserve on track for aggressive interest rate hikes to tame inflation.The Dow Jones Industrial Average fell 10.41 points, or 0.03%, at the open to 31,124.68. The S&P 500 opened lower by 13.60 points, or 0.34%, at 3,932.41, while the Nasdaq Composite dropped 86.44 points, or 0.74%, to 11,633.24 at the opening bell.
Kunal Shah, Senior Technical Analyst, LKP Securities:The Bank Nifty index witnessed some profit-booking at higher levels, indicating 41,800-42,000 will act as an immediate hurdle on the upside. The lower-end support stands at 40,000 levels, where one of the highest open interests is built up on the put side. The undertone remains bullish, and one should keep a buy-on-dip approach as long as it holds the support of 40,000 on the downside.
– Kunal Shah, Senior Technical Analyst, LKP Securities:
Tech View: Nifty50 forms a bearish candle
The Nifty failed to hold on to 18,000 levels on Thursday and closed with a bearish candle on the daily charts.This was the second consecutive day when Nifty50 closed in the red, but on Thursday, the closing level was lower than the opening one, which led to the formation of a bearish candle.Even though the index failed to hold on to 18,000, it still managed to close above the crucial support above 17,800, a positive sign for the bulls.The index closed 126 points lower at 17,877, while the S&P BSE Sensex was down 412 points to close at 59,934 on Thursday.Top gainers from Nifty50 include names like Maruti Suzuki, Eicher Motors, Adani Ports, Power Grid, and NTPC.“The Nifty50 index failed to hold above the previous day’s high and slowly drifted down towards 17,860 zones. It formed a Bearish candle on a daily scale and closed near its day’s low,” Chandan Taparia, Vice President and Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
Benchmark 10-yr bond yield posts steepest rise in six weeks on rate hike fears
India’s 10-year benchmark bond yield posted its sharpest rise in six weeks on Thursday, as market participants priced in an aggressive rate hike from the Reserve Bank of India to tackle elevated inflation.The benchmark 10-year government bond yield ended at 7.2386%, after closing at 7.1550% Wednesday. The yield posted its biggest single session rise since Aug. 5, after having gained five basis points in previous session. The 10-year 7.26% 2032 bond yield ended at 7.1997% after closing at 7.1254% on Wednesday.Meanwhile, the two-year U.S. yield stayed close to the 15-year high level, and sharply above the 10-year level. The two-year yield typically reflects interest rate expectations.
China’s offshore yuan falls past 7 per dollar for first time since July 2020
China’s offshore yuan fell past 7 yuan per dollar on Thursday for first time since July 2020.The dollar was last 0.5% higher at 7.0087 yuan.
Indian rupee weakens as oil companies soak up dollars
The Indian rupee declined on Thursday due to strong demand for the U.S. dollar from oil companies, while markets braced for a big rate hike from the U.S. Federal Reserve next week.The partially convertible rupee closed down 0.3% at 79.6975 per dollar, having fallen up to 79.7250 during the session.Traders do not expect any intervention till the 79.90 levels, so, based on that, oil companies have stepped in to buy dollars, a foreign exchange dealer at a private bank said.There was a lack of inflows in the market compared to the past few sessions, the dealer added.
“Nifty found resistance around 18100 leading to close in the red for the day. On the daily chart, a dark cloud cover pattern has formed suggesting waning bullishness. The trend for a few hours to 1 day may remain weak; However, the short-term trend remains positive as the Nifty closed above the falling trend line on the daily chart. On the lower end, support is visible at 17700, below which the short-term trend may become weak. On the higher end, resistance is visible at 17900/18100.”
– Rupak De, Senior Technical Analyst at LKP Securities
Defying the positive trend of global markets, domestic indices shed its early gains, dragged by losses in IT and pharma sectors, while mid & small caps outperformed. Fears of a recession in the global economy exacerbated selling pressure in IT and pharma stocks. Mid & small caps are expected to continue its trend in the short to medium term as they are trading reasonably well compared to large caps and at a discount to their historic valuation. Globally, in light of the elevated inflation in the US, investors are on an edge, assessing the possibility of a higher magnitude of a rate hike in the next Fed policy meeting
– Vinod Nair, Head of Research at Geojit Financial Services.
Sector Watch: Metal, auto only gainers in a weak market
Only 7 Sensex stocks end in the green
Closing Bell: Sensex tumbles 413 pts; Nifty slips below 17,900; TechM drops 3%; Ceat zooms 20%
Large banks like HDFC, ICICI, SBIN, Kotak and BOB are the major constituents of Bank Nifty and are well placed with superior fundamentals. The economy is witnessing a strong credit environment with improving capacity utilisation and capacity expansion. A healthy credit growth is one of the triggers of better performance of banks. Moreover, a healthy balance sheet, minuscule stress formation and lower credit cost lead to strong profitability. We believe the banks to witness NIMs improvement as the share of floating rate loans are increasing. The sound balance sheet, strong credit growth, healthy margins and lower credit cost are likely to be fruitful for the banking sector. The large bank may take the competitive advantage factoring the technological advancement. Among large banks, BOB and ICICI are our top picks.
– Ajit Kabi, Banking Analyst at LKP Securities
Veranda Learning Solutions approves raising funds of up to Rs 300 cr via preferential issue
Price as on 15 Sep, 2022 02:50 PM, Click on company names for their live prices.
Ceat among top 5 gainers on NSE
Price as on 15 Sep, 2022 02:19 PM, Click on company names for their live prices.
The precarious legal challenges, the lack of complete clarity on the management’s long-term performance, and less than stellar subscription numbers are some of the reasons for its negative listing. Those who applied for listing gains can maintain a stop loss of Rs 470. Long-term investors should wait for some quarters to let the dust settle, and in the meanwhile, we suggest investors go for other existing listed banks.
– Santosh Meena, Head of Research, Swastika Investmart on TMB stock
European shares claw back losses after sharp selloff
The STOXX 600 index rose 0.3% by 0711 GMT after slumping for two consecutive days.
Hot U.S. inflation data triggered a selloff across global equity markets earlier in the week, as it cemented views that the Federal Reserve will hike rates by yet another 75 basis points (bps) next week.
Top gainers & losers from the realty space
Price as on 15 Sep, 2022 12:54 PM, Click on company names for their live prices.
Oil Minister says BPCL disinvestment not on table as of now
Price as on 15 Sep, 2022 12:20 PM, Click on company names for their live prices.
Astral trades 4% higher after CARE Ratings upgraded the stock to AA+ from AA
- Astral to purchase additional 15% equity shares of Unit Seal IT Services
Tata Consumer Products (TCP), the FMCG arm of Tata Group, on Thursday announced the appointment of David Atkinson as Senior Vice President and Head of its UK and Ireland business. In his new role as Country Head, Atkinson will be responsible for leading the business and teams in the UK and Ireland, TCP said in a statement.
Price as on 15 Sep, 2022 11:56 AM, Click on company names for their live prices.
Infosys, Tech Mahindra, Coforge among top losers from the IT pack
Price as on 15 Sep, 2022 11:42 AM, Click on company names for their live prices.
BofA maintains Buy on Maruti Suzuki, ups target price by Rs 10,500 per/sh and indicates an upside of 18-20%
Price as on 15 Sep, 2022 11:36 AM, Click on company names for their live prices.
TCS launches Mobility Cloud Suite for automakers and suppliers
Source: PTI
BUZZING STOCK: Tata Investment Corporation hits lifetime high in trade today
Price as on 15 Sep, 2022 11:07 AM, Click on company names for their live prices.
A promoter entity of Adani Group purchased shares of Adani Enterprises worth 175 crore from the open market on September 13, reports Our Bureau. As per the disclosures about insider trading, Spitze Trade and Investment, the promoter group entity, bought 500,000 shares through the open market transaction. Earlier on September 7, another promoter entity Gelt Bery Trade and Investment, bought 140 shares in Adani Enterprises.
Price as on 15 Sep, 2022 11:06 AM, Click on company names for their live prices.
Check out the top gainers from the cement pack
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