Nifty witnesses growing sense of unease at higher levels.

Review & Preview @4PM —— Thursday, September 5th 2024

NIFTY (-54, 25145)
Sensex (-151, 82201)
Bank Nifty (+73, 51473)

Nifty witnesses growing sense of unease at higher levels.

Investors remain on high alert ahead of US jobs report which will be wired on Friday, September 6.

# Buzzing stocks:

1) Reliance Industries board approves bonus share issue in 1:1 ratio, the first bonus issue since 2017, when its stock price was roughly Rs 700.

This will also be Reliance’s sixth bonus issue since listing.

2) Shares of Avenue Supermarts (DMart) hit a two-year high of Rs 5,361, gaining 3.5% in an otherwise weak market on hopes of improvement in discretionary demand and margins.

3) Fino Payments Bank (Fino Bank) surged 10.72% to hit an over two-year high of Rs 463 on improved business performance.

However, the stock is quoting below its issue price of Rs 577 per share. It had hit a record high of Rs 583.35 on listing day.

# Sentimental Overview:

# Nifty received drubbing for the second straight day as traders digested downbeat readings on the US manufacturing activity that was seen spooking sentiments.

# As of writing, US interest rate traders assigned a 43% probability to the Federal Open Market Committee (FOMC) cutting the Federal Funds rate by a half-percentage point on Sept 18th

Source: CME Group’s FedWatch Tool.

 

 

# Technical Overview:

Expect volatility to be the hallmark at Dalal Street and that’s in line with our call of the day which says volatility is the price longtime Nifty bulls have to pay for the benchmarks’ outsized rewards.

Nifty’s two-days of consecutive lower close indicates the bulls have hit a pause button.

Technically, two bearish candles are being witnessed after a ‘doji candle’ indicating bullish consolidation shall be the preferred theme at Dalal Street in the near term.

We suspect, Nifty to flip between gains and losses with immediate hurdles seen at 25300-25500 zone.

Only above Nifty 25500, there is a bright chance of more short covering.

The line in the sand is at Nifty’s psychological support at 24900 mark.

# Outperforming Nifty Sectors:
NIFTY MEDIA (+1.03%)
NIFTY IT (+0.56%)
NIFTY METAL (+0.35%)

# Underperforming Nifty Sectors:
NIFTY REALITY (-0.94%)
NIFTY INFRA (-0.58%)
NIFTY PSE (-0.58%)

(Source NSSEINDIA.com)

# Bulls of the day:
TITAN (+3.11%)
LTIM (+1.44%)
WIPRO (+1.16%)
BPCL (+1.11%)
ITC (+0.97%)

# Bears of the day:
CIPLA (-1.46%)
DRREDDY (-1.28%)
COALINDIA (-1.28%)
RELIANCE (-1.26%)
BRITANNIA (-1.22%)
(Source NSSEINDIA.com)

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