Daily Market Dose

17^th August

Tracking global cues, the Indian equity market opened a few points lower from Wednesday’s closing.  Most Nifty 50 sectoral indices are in red, dragged by weak cues from FMCGs and financial companies.

Asian markets declined, dragged by concerns over China’s economy in the wake of subdued data over the last few sessions. The MSCI Asia ex-Japan index lost 0.5%.

Whereas, U.S Markets too closed lower on Wednesday after the release of the Federal Reserve’s minutes which revealed that during their latest meeting, central bank officials were divided on the need of further interest rate hikes.

NIFTY Outlook

• The Nifty index started negatively, hitting a low of 19,317.20, but rebounded due to buying interest, closing slightly positive at 19,465.00 level.
• On the daily chart, the index found support at its 50-day Simple Moving Average (SMA) and formed a lower shadow candlestick pattern, indicating buyers are activity at lower levels.
• Additionally, the index has respected the critical 0.50% Fibonacci Retracement level, which has served as important support in the recent past for the Nifty as well. This level could play a crucial role.
• Ahead, if the Nifty remains below the retracement level and 19,300, further corrections towards 19,000 could occur. Alternatively, surpass above the immediate resistance at 19,500 suggests potential upward movement to 19,750.

Support and Resistance

• Nifty: Immediate resistance is situated at 19,550, followed by 19,600 levels. Conversely, downside support is located at 19,350, followed by 19,300.
• Bank Nifty: Intraday resistance is positioned at 44,100, followed by 44,250, while downside support is found at 43,800, followed by 43,600.

• Fin Nifty : Intraday resistance is positioned at 19,650, followed by 19700, while downside support is found at 19510, followed by 19430.

News that will impact the market today

1. US Economic Data – US July industrial production at -0.2% (YoY) vs an estimate of -0.7%.

• The Union Cabinet on Wednesday approved the expansion of the Digital India Programme, with a Rs 14,903 crore booster to scale up digital skilling, cybersecurity, e-governance services, and the development of artificial intelligence (AI).

• Union Cabinet approves Rs 13,000-cr ‘PM Vishwakarma’ Yojana; craftsmen to get subsidised loans up to Rs 2 lakh.

• Govt plans to sell 11.36% shares in Indian Railway Finance Corp via OFS

• The Union Cabinet has approved 7 multi-tracking projects worth Rs 32,500 Crore for the Indian Railways.

• India ranks second in mobile production with ‘Make in India’ driving 2 billion devices.

• Stocks Ban In F&O: Balrampur Chini, Chambal Fert, Delta Corp, GNFC, Granules, Hind Copper, Indiabulls Hsg, India Cement, Sail, Zeel.

Source- CNBC TV-18, economictimes.com

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Research Disclaimer Broking services offered by Bajaj Financial Securities Limited (BFSL) | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Ltd,1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014| CIN: U67120PN2010PLC136026| SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403|