HCL tech rallies on foreign collaboration, AU Small Finance Bank jumps

Technical Overview – Nifty 50

NIFTY on its weekly expiry day witnessed a sharp up move and has given a breakout of a rectangle pattern on the daily time frame. The Benchmark index witnessed a flat opening and traded below 19,600 levels in the initial hour of trade. And post that index continues to move higher in the climbing steps formation and got engaged in a higher high higher low formation.

The Nifty on the daily chart has formed a bullish golden cross where 9 EMA has crossed above 21 EMA suggesting bullish momentum is likely ahead. The RSI (14) on the daily chart has witnessed a falling wedge pattern breakout above 50 levels with a bullish crossover.

The Index on the daily chart has closed above its psychological mark of 19,700 levels and a sustained move above the same will induce a sustained move towards 19,800 – 19,850 levels for the coming days. On the flip side, 19,600 will act as immediate support for the index.

Technical Overview – Bank Nifty

The Bank Nifty underperformance continues for to third straight where the Benchmark index closed in gains and the Banking index witnessed a sideways trading range. The daily candle of the Bank Nifty suggests a short-covering rally towards the end and formed a wick on the lower end.

The index on the daily chart is trading within the rectangle pattern and moved above 50 & 21 EMA. The momentum oscillator RSI (14) has formed an intermediate bottom at 40 levels and presently moved above 50 levels with a bullish crossover.

On the broader time frame, the banking index is trading in a higher high bottom formation and taking support near its 21-week exponential moving average which is placed at 43,916 levels. Now the immediate hurdle for the bulls will be near 45,000 levels and a breakout above the said levels will initiate a bullish breakout in the Banking index. Similarly, on the lower side, 44,200 & 44,000 will act as immediate support for the Banking index.

Indian markets:

• Market ended higher for the fifth straight session on September 7, shrugging off weak global cues and helped by gains in capital goods, bank, and realty, as the Nifty reclaimed the important 19,700 mark.
• The market started flat on weak global cues but the afternoon rally in capital goods, bank, power and realty stocks helped it to close near the day’s high.
• Except FMCG and pharma, all indices traded in the green. Bank, capital goods, PSU Bank, power and realty up 1-2 percent.

Global Markets

• Asian stocks sank on Thursday, extending global equity declines after new signs of sustained inflationary pressures in the United States boosted the case for elevated interest rates for longer.
• The U.S. dollar hung close to the highest since mid-March against major peers, and touched a fresh 10-month top to the yen. Long-term Treasury yields hovered near two-week highs near 4.3%.
• European stock markets were lower Thursday, with investors assessing U.S. inflationary pressures and euro zone data.
• Global market sentiment has taken a turn for the worse in recent days as investors focus on weak Chinese data, higher government bond yields and the interest rate environment, with renewed inflationary concerns in the U.S.

Stocks in Spotlight

• Shares of ICICI Securities surged to their 52-week high of Rs 651.80 in afternoon trade on September 7 after Moneycontrol reported that Norway’s government pension fund manager and an Indian PMS are likely to vote against the proposal to delist ICICI Securities, as clamour over low valuation grows among investors.
• Shares of AU Small Finance Bank jumped nearly 1 percent in trade on September 7, post the announcement of bancassurance tie-ups with Star Health and Bajaj Allianz Life Insurance.cAt 12:37 pm the AU Small Finance Bank stock was trading 0.51 percent higher at Rs 723.05 on NSE. AU Small Finance Bank has taken a significant step in enhancing its customer services by sealing bancassurance deals with Star Health and Allied Insurance Company, and Bajaj Allianz Life Insurance Company. This move aims to provide health and life insurance solutions to the bank’s customers, creating a one-stop destination for their financial needs.
• HCL Tech The share closed 1.5 percent higher after the company said it has signed a multi-year managed public cloud services agreement with German technology and high-tech industry giant Siemens AG. HCL Tech will focus on automating the public cloud environment while adhering to Siemens’ high-security standards, it said in an exchange filing on September 7. “HCLTech will migrate and operate Siemens’ infrastructure on AWS and Azure and ensure its cloud resources are optimized, secure and scalable, allowing the company to focus on its core business,” it added. This is the second deal announcement by the company in two days. On September 6, HCL Tech said it has been selected by Elders, a leading Australian agribusiness, to accelerate digital transformation across the latter’s business operations.

News from the IPO world🌐

• Jyoti CNC Automation files papers for Rs. 1000 crore IPO
• 3 main board IPOs to hit this week plan to raise Rs. 1300 crore
• Samhi Hotels IPO to open on 14th September

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