Nifty hits another record high. Last week’s tremors are now in the rearview mirror.

*The Week That Was @ 9:30 AM – Saturday, September 14th 2024*

September 9th to September 13th 2024.

Bullishness was on the rise for benchmark Nifty as it hit another record high — recouping all of its last week’s losses.

The Good News: Last week’s tremors are now in the rearview mirror.

Most importantly, the street is now actually hoping for more fireworks at the FOMC meeting outcome which will conclude on September 18th.

Nifty (+2.03%, 25357)
Sensex (+2.10%, 82891)

 

Well, Nifty’s dream run continued and the best part was that the index closed out the week notably higher and on extremely strong footing as excitement swirls ahead of next week’s rate cut.

Honestly speaking, the Fed is all but certain to lower the Federal Funds rate from its current 23-year high when its latest meeting concludes this Wednesday, September 18, with the street now bickering between whether it will be 25 basis points (0.25%) or 50 basis points (0.50%) on backdrop of driven by recent inflation and jobs data.

As of recording, according to CME Group’s FedWatch Tool, futures traders are pricing in a 53% probability for a 0.25% cut and a 47% chance it’ll be 0.50%.

Amidst this optimism, Wall Street simply too zoomed higher with S&P 500, Nasdaq marking best week of 2024. Dow climbed 2.6% while Nasdaq zoomed 5.93% higher. The S&P notched a 4% weekly gain.

Long story short: Ladies and Gentlemen, expect Nifty and Sensex to trade on an extremely buoyant note in next week’s trade.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 25357 +2.03%

Sensex 82890.94 +2.10%
Bank Nifty 51938 +2.69%
Nifty Midcap 16878 +2.83%
India VIX 15.22 +13.63%

Dow Jones
41394 +2.60%
Nasdaq 19515 +5.93%
Bovespa 134882 +0.23%

Crude Oil 68.65 +1.45%
Gold 2578 +3.68%
Silver 30.71 +9.95%
USD/INR 83.88 (-0.13%)

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

Nifty scaled new record historic high at 25433.35. (Technically, a massive breakout appears on the daily/weekly charts with higher high/low backdrop on all time frames.)

Bank Nifty too rebounded sharply higher, up 2.69% on weekly basis. (Bank Nifty’s new all-time-high continues to be at 53357.70 mark).

Nifty Private Bank index zoomed 2.95% higher while Nifty PSU Bank index inched 0.91% higher on weekly basis.

In broader markets, the Nifty Mid-cap 100 index slipped 2.83% higher while the Nifty Small-cap index inched 1.19% higher.

Bearish Sectors:
Nifty PSE Index (-1.28%)
Nifty Oil & Gas Index (-2.61%)

Bullish Sectors:
Nifty FMCG Index (+2.99%)
Nifty Media (+2.84%)
Nifty IT (+2.76%)
Nifty Metal (+2.29%)
Nifty Reality Index (+2.09%)
Nifty Pharma (+1.8%)
Nifty Infra Index (+1.63%)
Nifty Auto Index (+1.15%)

 

STOCK SPECFIC NEWS:

1) Bajaj Housing Finance IPO: Rs 3,80,000 cr worth of bids received for a Rs 6560 cr IPO. The street eagerly awaits the listing of Baja Housing Finance shares, scheduled for Monday, September 16, 2024. (Source: Business Standard)

(Media report suggests the grey market premium (GMP) of the public issue continues to remain above 100%.)

2) Bharti Airtel was star outperformer, gaining 6.16% and scaling new record all-time-high at Rs 1655 on reports that it has expanded its home Wi‐Fi service across all the 22 districts of the Union Territories of Jammu and Kashmir and Leh-Ladakh. (Source: Business Standard)

3) Wipro gains 5.76% after CEO Srini Pallia emphasised the company’s continued commitment to its five-pronged growth strategy. (Source: Moneycontrol)

4) Steel stocks like Jindal Steel (+8%), JSW STEEL (+2.33%) were in limelight on reports from rating agency ICRA that the demand for steel was robust in the first quarter of the ongoing financial year with consumption growing at a rate of 15% on a year-on-year basis amidst competitively priced imports.

5) The plunge in WTI Oil futures near the $66 per barrel (its lowest level since May 2023), were seen benefiting stock price of paint companies like Asian Paints (+2.58%), and Berger Paints (+4.42%) as lower oil prices translate to higher operating margin for paint-makers.

6) Alternatively, on concerns over a weak oil demand outlook, ONGC (-5.62%) & Oil India (-6.60%) received fresh drubbing.

7) Persistent Systems stock price was in limelight, gaining 3.27% and most importantly, hit an all-time high of Rs 5,387 per share after the company signed an asset purchase agreement with SoHo Dragon to acquire some of its assets.

8) Suzlon Energy climbs 11% after the firm secured a 1,166 MW project in Gujarat with NTPC Green Energy Limited. This deal involves installing 370 wind turbines and is a key part of NTPC’s goal to add 60 GW of renewable energy capacity by 2032. Suzlon’s order book now stands at nearly 5 GW.

9) Tata Power was in limelight, up 5.95% on reports that TP Solar Ltd, a subsidiary of Tata Power Renewable Energy Ltd (TPREL) on Monday (September 9) said it has commenced commercial production at its 2GW solar cell line in the state-of-the-art manufacturing facility in Tirunelveli, Tamil Nadu.

# In the week gone by, notable gainers amongst Nifty 50 were:
BAJAJ AUTO +8.38%
DIVIS LAB +7.02%
BHARTI AIRTEL +6.18%
WIPRO +5.76%
AXIS BANK +5.07%

# And the losers were:
ONGC (-5.62%)
TATA MOTORS (-5.46%)
HDFC LIFE (-4.47%)
BPCL (-2.8%)
SBI LIFE (-2.63%)

 

 

 

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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.

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