Economic Data and Global Factors Boost Sentiment, Nazara Tech, RVNL, and TATA Steel in the News

Technical Overview – Nifty 50

During the first trading session of the week, the market opened higher on strong global sentiment and traded with a bullish sentiment throughout the day. Nifty has formed a bullish candlestick pattern and ended the day above 19,500 levels.

After the initial sell-off, Nifty took support near the earlier Double Bottom breakout level near ~19450. As Nifty bounces back today, PUT Writers seem to be more active at the moment. The daily and hourly momentum indicators triggered a positive crossover with a divergence, which is a bullish sign from a short-term perspective.

The Benchmark index on 4th Sept witnessed a gap up opening above its 9 & 21-day exponential moving average and prices closed above the same suggesting an optimistic view. Now the immediate hurdle for the bulls will be near 19,600 levels and a breakout above the said levels will initiate a bullish breakout in the index. Similarly, on the lower side, 19,370 &19,300 will act as immediate support for the index.

Technical Overview – Bank Nifty

After the initial sell-off, Bank Nifty took support near its 21-day exponential moving average and witnessed a sharp V-shape reversal rally after recording an intraday low at 44,310.95 levels. Technically, the Bank Nifty moved higher above 9 EMA but prices underperformed the benchmark index on 4th Sept.

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 43,932 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, 44,300 & 44,100 will act as immediate support for the index.

Indian markets:

• The domestic stock market experienced a surge on Friday, driven by positive global cues, especially due to the US PCE inflation meeting expectations.
• Positive domestic economic data played a pivotal role in boosting market sentiment, with higher-than-expected manufacturing PMI and favorable GDP growth figures contributing to the optimism.
• Commencing the day at 19,258.15, the Nifty 50 index displayed consistent upward momentum throughout the trading session, ultimately closing above the 19,400 mark.
• Nifty Metal, Nifty Auto, and Nifty PSU Bank outperforming the broader Nifty 50 index. Nifty Healthcare, Nifty Pharma, and Nifty Media lagging behind in performance.

Global Markets

• European and Asian markets advanced as traders hoped that the U.S. unemployment data would lead the Federal Reserve to keep interest rates steady this month. Additionally, there was anticipation for potential stimulus measures from Beijing.
• Global leaders are preparing for the G20 summit in India, but Chinese President Xi Jinping wont be attending.
• US stocks ended mixed on Friday as traders weighed the latest U.S. jobs report. The unemployment rate jumped to 3.8% in August, the U.S. Department of Labor said Friday. Nonfarm payrolls grew by a seasonally adjusted 187,000 in August. However, job numbers first reported for June and July were revised down by a combined 110,000.

Stocks in Spotlight

• Nazara Tech’s shares surged by 10% as its board approved the issuance of shares worth Rs 100 crore to Zerodha founders, Nikhil and Nithin Kamath, on September 4. The board agreed to issue approximately 14,00,560 shares at an issue price of Rs 714 per Equity Share, totaling Rs 99,99,99,840. This investment increases Nikhil Kamath’s stake in the company from 1% to approximately 3.5%, and he expressed plans to further raise his stake during an interview with CNBC TV-18. 
• RVNL’s stock rose by 12% following the company’s announcement that it secured orders worth Rs 604.19 crore from the Madhya Gujarat Vij Company. These orders involve developing distribution infrastructure for loss reduction in Vadodara and Dahod districts as part of a distribution sector scheme. The Vadodara project is estimated at Rs 322.08 crore, and the Dahod district project at Rs 282.11 crore, with a completion timeline of 31 months.
• TATA Steel’s stock closed with a 3.5% increase as reports revealed advanced discussions between the company and the UK government. TATA Steel is reportedly in talks to secure approximately GBP 500 million in state-backed funding to bolster its Port Talbot plant, which would safeguard numerous jobs in the UK’s steel sector. A deal appears to be nearing finalization, as reported by Sky News.

News from the IPO world🌐

• Jyoti CNC Automation files papers for Rs. 1000 crore IPO
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