Tata Steel Receives Moody’s Boost, JSW Infra IPO fully subscribed on day 2

Technical Overview – Nifty 50

Nifty50 witnessed a second consecutive dry day where prices witnessed a flat opening and traded in an absolutely narrow range throughout the day. On 25th Index formed a Doji candle stick pattern on the daily chart and prices protected the low of the pattern.

It was a low volatile trading session where traders kept guessing the trend for the day. The index on the daily chart has taken support near 61.80% Fibonacci retracement which is placed at 19,600 levels. The index is trading below its short-term averages but taking firm support near its 50-day exponential moving average, which is at 19,550 levels.

The previous week’s tall bearish candle has paused the bullish trend and a breakout above 19,850 will be an again level to go long and close below 19,600 – 19,550 levels, which will open the downside till 19,300 levels.

Technical Overview – Bank Nifty

The Banking index has formed a spinning top candle stick pattern for two consecutive days and traded in a very narrow range. The Banking index is trading above the upper band of the horizontal channel pattern and sustaining above 100 days exponential moving average which is placed at 44,246 levels. 

The momentum oscillator RSI (14) is hovering just above 40 levels and this level is likely to act as an immediate support for an oscillator. The highest Call side open interest is witnessed at 45,000 strikes & highest put open interest is at 44,500 strikes. Heavy call writing is witnessed at 44,600 levels and heavy put writing is witnessed at 44,600 levels.

The previous week’s tall bearish candle has paused the bullish trend and a breakout above 45,100 will be an again level to go long and close below 44,350 – 44,200 levels, which will open the downside till 44,000 levels.

Indian markets:

• Domestic equity benchmarks ended the day with marginal losses.
• Nifty closed below the 19,700 level.
• Trading session marked by subdued activity and pessimistic sentiment.
• FMCG, auto, and metal shares showed gains.
• Media, PSU banks, and IT shares lagged in performance.
• Traders cautiously booked selective profits in anticipation of the RBI policy meeting next week.
• Factors considered include the strength of the dollar index and rising treasury yields.
• Weak global cues contributed to the cautious atmosphere in the market.

Global Markets

• Dow Jones index futures were down 106 points, indicating a weak opening in the US stock market today.
• Markets in Europe and Asia stocks declined on Tuesday due to concerns over higher U.S. interest rates, particularly impacting the technology sector. Investors remained cautious about regional markets due to ongoing worries about a slowdown in the Chinese economy.
• The US Federal Reserves hawkish signals, indicating potential further rate hikes this year and a prolonged period of higher rates, added to the negative sentiment.
• Despite this, U.S. stocks managed to make modest gains on Monday, supported by a rise in tech stocks driven by Amazon and an increase in energy stocks. The S&P 500, Dow Jones Industrial Average, and Nasdaq all saw slight increases.
• However, worries about a potential U.S. government shutdown grew as Congress has yet to pass necessary spending bills to fund the government beyond 1st October.

Stocks in Spotlight

• TATA Steel’s stock experienced a 1% increase following Moody’s Investors Service’s decision to revise the company’s outlook to “stable” and upgrade its long-term rating from ‘Ba1’ to ‘Baa3’. This move is based on the expectation of improved profits and debt reduction efforts by the steelmaker. Moody’s highlighted the upgrade as a reflection of their confidence in Tata Steel’s robust credit profile, attributed to its strong market position in India. This announcement was made in a statement released on September 25th.
• Zensar Technologies witnessed a 3% increase in its shares as it announced a significant Rs 227.65-crore order from the Ministry of Defence for the supply of Anti-Drone systems in the domestic market. The contract also includes a comprehensive maintenance contract (CMC) post-warranty, priced at Rs 43.22 crores. Over the past nine months, the company’s share price has surged by nearly 300%.
• Varun Beverages experienced a 5% surge in its stock price, driven by a “buy” recommendation from Bank of America (BofA) Securities. BofA Securities has increased the target price for Varun Beverages shares to Rs 1,030, expressing confidence in the company’s ability to maintain robust growth and profitability even in a volatile macroeconomic climate.

News from the IPO world🌐

• Rockingdeals Circular Economy files IPO papers
• JSW Infra IPO fully subscribed on day 2; Retail portfolio subscribed 4 times
• Fincare Small Finance Bank IPO gets SEBI approval

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