RVNL’s Railway Project Win, DLF’s Residential Pipeline, Nazara’s Rally 

Technical Overview – Nifty 50

The Frontline index opened the day with marginal gains and remained range-bound throughout the day protecting 19,500 levels. The bias for the stocks remains bullish as market breadth remains in favor of the bulls.
The index has been trading within the rectangle pattern from the past few trading sessions and presently has reached near the upper band of the pattern. The price continues to sustain above their short and medium-term averages which is positive for the prices.

The momentum oscillator RSI (14) is slowly moving above 50 levels with a bullish crossover and has also witnessed a falling wedge pattern breakout on the daily scale. The MACD indicator has given an early crossover signal below its line of polarity.

A sustained breakout above 19,600 & 19,630 levels will induce and breakout in the index for the higher levels to 19,700 levels. On the flip side if prices drift below 19,500 levels then 19,400 will be the next support level to watch out.

Technical Overview – Bank Nifty

The Bank Nifty underperformed the benchmark index for the second consecutive day and traded in the narrow range suggesting a sideways trade. Technically, the Bank Nifty moved higher above 9 EMA but prices underperformed the benchmark index on 5th 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:

• Domestic shares recorded a third consecutive session of gains.
• US markets remained closed on Monday, prompting selective investor activity.
• The Nifty index closed above the significant 19,550 level.
• Investors showed interest in healthcare, realty, and energy stocks.
• Conversely, pressure weighed on banks, automotive, and financial stocks.
• Despite a slight decline from 62.3 in July to 60.1 in August, the seasonally adjusted S&P Global India Services PMI Business Activity Index signaled robust output growth, reminiscent of levels last seen in mid-2010.

Global Markets

• Markets in Europe and Asia declined on Tuesday ahead of Australias central banks rate decision, as well as inflation and business activity readings from across the region.
• The Reserve Bank of Australia is expected to hold its benchmark policy rate for the third straight month, as per reports. Investors are also monitoring purchasing managers index readings from China and India.
• Japans service sector activity expanded at the fastest pace since May, according to a private survey from au Jibun bank. The countrys service purchasing managers index stood at 54.3 in August, unchanged from the flash estimates released in late August and higher than the 53.8 in July.

Stocks in Spotlight

• Rail Vikas Nigam Ltd (RVNL) saw a 1.5% surge on September 5 as its joint venture secured the lowest bid for a railway project valued at Rs 174 crore. The previous day, RVNL reached an all-time high of Rs 163.45 after announcing orders worth Rs 604.19 crore from Madhya Gujarat Vij Company. The RVNL-MPCC JV clinched the Lowest Bidder (L1) position for comprehensive civil engineering and track works, encompassing gauge conversion on the Petlad – Bhadran route (22.50 kms) within Vadodara Division of Western Railway.
• DLF witnessed a robust 1.5% surge and reached a 52-week high of Rs 525.80 on September 5. The real estate giant unveiled an impressive residential project launch pipeline valued at approximately Rs 20,000 crore, spanning various regions in the country, for the current fiscal year. DLF’s residential launches are slated for Gurugram, Panchkula, Chennai, and Mumbai, signifying substantial growth prospects in the real estate sector.
• Nazara Technologies experienced a notable 7% rally, reaching a 52-week high of Rs 906 on September 5. The company has announced plans to discuss raising additional funds at its upcoming board meeting, scheduled for September 7. The meeting will explore the possibility of raising funds through the issuance of equity shares or securities on a preferential basis, in line with the Companies Act, 2013.

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
• Vishnu Prakash R Punglia closes with 47% gains on debut

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