The dramatic rally should lift Nifty above the key historic 26,000 milestone.

The Week That Was @ 9:00 AM – Saturday, September 21st 2024

September 16th to September 20th 2024.

Nifty Bulls Must Be Simply Blushing…

…as the rush of ‘Emotional Buying’ transformed into ‘Momentum Buying’ which moved further towards ‘Buying Stampede’ and then the ‘Raging Bull’ market rockets Nifty to fresh all-time-high at 25849.25 mark.

The Biggest Positive Catalyst: The Fed’s 50 basis point jumbo rate cut is likely to trigger expectations of global interest rate cuts…

Yipeee…

 

Nifty (+1.71%, 25791)
Sensex (+1.99%, 84544)

Strictly speaking, after staying sideways for most part of the week gone by, the benchmark Nifty jumped out of the gate in Friday’s trade on increasing bets that the Reserve Bank of India (RBI) could take over the theme of slashing interest rates from the Federal Reserve.

Investors were also delighted after S&P Global says India to be the 3rd -largest economy by 2030-31, with an expected annual growth rate of 6.7%.

Net-net, investors’ now hope that the Federal Reserve will be successful in piloting the US economy to a soft landing.

Projections by FOMC members too pointed to a median of 100bps in total rate cuts for the year, translating to 25bps in each of the central bank’s meetings this year.

Importantly, policymakers also expect GDP growth to remain at the 2% level for the upcoming years

Amidst this optimism, Wall Street too simply zoomed higher with the S&P 500, Nasdaq and Dow Jones gaining around 1.5% on weekly basis

Long story short: Ladies and Gentlemen, Nifty’s meteoric rise shall continue to be the preferred theme in the near term and most importantly, the dramatic rally should lift Nifty above the key historic 26,000 milestone.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 25791 +1.71%
Sensex 84544 +1.99%
Bank Nifty 53793 +3.57%
Nifty Midcap 16767 (-0.65%)
India VIX 12.79 +1.91%

Dow Jones 42063 +1.62%
Nasdaq 19791 +1.42%
Bovespa 131065 (-2.83%)

Crude Oil 71.34 +3.92%
Gold 2621 +1.64%
Silver 31.21 +1.57%
USD/INR 83.48 (-0.48%)

# Here are how indices performed in the week gone by:

Nifty scaled new record historic high at 25849.25. (Technically, a massive breakout appears on the daily/weekly charts with higher high/low backdrop on all time frames.)

Bank Nifty too scaled new all-time-high at 54066.10, up 3.57% on weekly basis.

Nifty Private Bank index zoomed 3.78% higher while Nifty PSU Bank index inched 1.30% lower on weekly basis.

In broader markets, the Nifty Mid-cap 100 index slipped 0.65% lower while the Nifty Small-cap index too fell 0.89% lower.

Bearish Sectors:
Nifty IT (-2.74%)
Nifty Media (-2.62%)
Nifty Pharma (-1.93%)
Nifty PSE Index (-1.45%)
Nifty Oil & Gas Index (-1.44%)

Bullish Sectors:
Nifty Reality Index (+4.55%)
Nifty Auto Index (+2.22%)
Nifty FMCG Index (+1.24%)
Nifty Infra Index (+1.30%)
Nifty Metal (+0.36%)

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STOCK SPECFIC NEWS:

1) ICICI Bank scaled fresh all-time-high at Rs 1362 and most importantly, mcap hit Rs 9 lakh crore milestone for first time.

2) Bajaj Housing Finance witnessed a bumper debut which saw its price hit a peak of Rs 188.50.

3) State-run NTPC’s green energy arm files for $1.2 bln India IPO. (The company, a unit of state-owned power producer NTPC, will only issue new shares, and existing shareholders will not sell any stake, the draft papers showed).

4) JSW Steel, scaled a fresh 52-week high at Rs 988 after upgrades from Macquarie and Goldman Sachs citing signs of recovery in the Chinese economy.

5) ITD Cementation jumped 17% to Rs 562 on report that Adani Group is eyeing promoter stake in the company.

6) Nifty IT Index tumbled 3%. Blame it on Accenture’s Plc which is planning to push back the bulk of its staff promotions by six months due to a challenging consultancy environment.

7) Vodafone Idea shares tumbled 22%, Indus Towers plummeted 9% as Supreme Court rejected telecommunication companies’ plea for the re-computation of adjusted gross revenue (AGR) dues.

8) HUL hits new record high at Rs 2989; market-cap touches Rs 7 trillion on a healthy demand outlook.

9) Reliance Infrastructure (R-Infra) share price rallied 49% to Rs 316, hitting the highest level since January 2019.
(The spurt in R-Infra shares came after the company’s board approved a preferential issue to raise Rs 3,014 crore through the issuance of up to 125.6 million equity shares at a price of Rs 240 per share).

# In the week gone by, notable gainers amongst Nifty 50 were:
M&M +7.73%
ICIC BANK +7.05%
NESTLE +6.64%
NTPC +5.62%
LARSEN +5.01%

# And the losers were:
TCS (-5.26%)
GRASIM (-3.81%)
BPCL (-3.24%)
HCL TECH (-2.91%)
TATA MOTORS (-2.14%)

 

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DISCLAIMER

SEBI study dated January 25, 2023 on ‘Analysis of Profit & Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment’ wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

*RISK DISCLOSURES ON DERIVATIVES:*

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.

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