JFSL’s Debut, Titan’s Acquisition, and Infosys’ Regulatory Updates

Technical Overview – Nifty 50

The benchmark index starts the week with a gain of 83 points and closed near its prior resistance levels. The prices on the 21st Aug shown a bullish momentum from the day’s low and traded in a higher high higher bottom formation on the intraday chart. Nifty snaps its 2-day losing streak. Technically, Nifty could extend major recovery once it clears the 19537 mark.
On daily charts, the index has started moving in lower lows & lower high patterns which is the first signal for a profit booking scenario after the rally from 16800 to 19991 levels. On a weekly chart, the Indian benchmark has formed a bearish body candle for the consecutive fourth week.

Maximum Call Open Interest Build Up witnessed in 19400-19500 Call & on the Put Side Maximum Open Interest is being witnessed in 19300-19200 levels. The PCR ratio holds at 0.97.
Technically speaking, Nifty bulls are likely to hesitate as long as Nifty’s 19525-19550 zone is a resistance area. On the downside, bears will become active if the Nifty slips below the 19250 mark.

Technical Overview – Bank Nifty

The Bank Nifty showed a recovery on the 21st Aug but it underperformed the Benchmark in terms of percentage gains. On the daily chart, Banking Index stays below its neckline of the head & shoulder pattern which is placed at 44,300 levels.
From the last 5 trading sessions, the Banking index is taking strong support near its 100-day exponential moving average which is placed at 43,850 levels. Bank Nifty index on the weekly chart remained under pressure for the fourth consecutive week. The momentum oscillator RSI (14) is reading in a lower low formation but from the last couple of days, it’s finding support near 33 levels. 
The trend remains bearish as long as the banking index stays below the neckline of the bearish head & shoulder pattern which is placed at 44,350 levels. A break below 43,600 would add more bearishness & it will take the banking index lower near 43,200 levels. On the flip side, hurdles for bulls are near neckline resistance which is placed at 44,200, and the 44,400 levels.

Indian markets:

• Frontline indices rebounded with modest gains on Monday, ending a two-day decline.
• Nifty index closed around the 19,400 mark, displaying resilience despite touching a morning low of 19,296.30.
• Positive momentum in key indices was bolstered by the performance of the IT sector.
• Investor caution persists due to apprehensions surrounding the increasing dollar index and US bond yields.
• Anticipation builds as investors await insights from the Fed chair’s remarks on interest rates for clarity.

Global Markets

• The Dow Jones index futures were up 111 points, indicating a positive opening in the US stocks later today.
• Markets in Europe advanced while Asian stocks ended mixed after a Chinese rate cut failed to reassure investors worried about the outlook for the worlds number two economy.
• The Peoples Bank of China cut its one-year loan prime rate by 10 basis points to 3.45%, but held the five-year LPR at 4.2%.
• U.S. stocks mostly fell Friday as the recent rise in bond yields and Chinas economic woes left major benchmarks with another losing week.
• Federal Reserve Chairman Jerome Powell will be delivering an address at the central banks symposium in Jackson Hole, Wyo., next week. The Fed announced that Powell will speak Friday, 25 August 2023. He will deliver a speech, but there will be no question-and-answer session afterwards.

Stocks in Spotlight

• Jio Financial Services Ltd (JFSL) shares had a lackluster start on the stock exchanges on Monday, with a tepid debut. The shares were listed at Rs 265 on the BSE and Rs 262 on the National Stock Exchange (NSE). Although the listing price was slightly above its discovered price of Rs 261.85 per share, the market response was relatively subdued. The scrip settled at 5% lower circuit at Rs 251.75 on the BSE. JFSLs equity shares, formerly known as Reliance Strategic Investments, have been admitted to dealings on the exchange in the T group of securities.
• Titan Company gained 0.97%. The company stated that it has entered into a share purchase agreement to acquire the entire shares held by the founder of CaratLane and his family members representing 27.18% of its total share capital on a fully diluted basis for Rs 4,621 crore. The indicative time period for completion of the acquisition would be 31 October 2023.
• Infosys rose 1.16%. The Commonwealth of Massachusetts, Pennsylvania Department of Revenue have imposed a penalty of $1124.6 and $12.28 on the company. There is no material impact on financials, operations or other activities of the company.

News from the IPO world🌐

• Pyramid Technologies IPO subscribed 1.6 times on day 1
• Auto components maker Happy Forgings files IPO papers with Sebi
• Concord Biotech to list at 21 percent premium

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