Pre-Market Snap: Global and Indian Market Updates for September 30, 2024

On September 30, 2024, global and Indian indices displayed a varied trend, with some markets seeing gains while others posted significant losses. Japanese stocks took a substantial hit, while US markets ended mixed. Indian indices are expected to open negatively.

Here’s a comprehensive overview of global and Indian market performances, key technical insights, and stocks in focus.

Global Indices Performance as of 7:30 AM (IST)

The global markets showed mixed results across different regions:

• GIFT Nifty (Asia): 26,311.0, down by 43.0 points (-0.16%)
• Dow Jones (US): 42,313, up by 137.89 points (+0.33%)
• Nasdaq (US): 18,119.59, down by 70.70 points (-0.39%)
• S&P 500 (US): 5,738.17, down by 7.20 points (-0.13%)
• Hang Seng (Asia): 20,944.31, up by 312.01 points (+1.51%)
• Nikkei 225 (Asia): 38,189.92, down by 1,639.64 points (-4.12%)
• Kospi (Asia): 2,634.14, down by 15.64 points (-0.59%)
• FTSE 100 (Europe): 8,320.76, up by 35.85 points (+0.43%)

Indian Indices Performance

At the close of the previous session, Indian indices also experienced losses, indicating a challenging start for the upcoming session:

• Sensex: 85,571.85, down by 264.27 points (-0.31%)
• Nifty 50: 26,175.15, down by 40.90 points (-0.16%)
• Nifty Bank: 53,836.15, down by 539.20 points (-0.99%)
• India VIX: 11.96, down by 0.04 points (-0.33%)

Market Bulletin

• Indian indices, including Sensex and Nifty 50, are expected to open on a negative note, influenced by GIFT Nifty’s trade around 26,311.
• Asian Markets: Japan’s Nikkei dropped over 4% due to fears of a potential rate hike following new leadership, while other Asian markets showed mixed performance.
• US Markets: The Dow Jones reached a record high, while both the S&P 500 and Nasdaq declined.
• US Treasury Yields: The US 10-year Treasury yield remained stable, while the 2-year bond yield increased by 34 basis points.
• Dollar and Euro: The dollar index remained stable, and the Euro was seen trading at $1.1169.
• Commodities: Gold saw a slight rise, while silver gained nearly 0.5%. Oil prices also climbed due to concerns over supply disruptions in the Middle East. Commodities on the London Metal Exchange (LME) showed mixed results, with Copper and Lead declining, while Nickel and Aluminium rose by over 1%.
• Key Market Focus: Investors are awaiting US jobs data on October 4, along with Q2 earnings updates, macroeconomic data, and crude oil prices, which are key triggers for future market movements.
• China’s Economic Data: China’s factory activity contracted for the fifth consecutive month.
• Securities in Ban Period: None.

Technical Analysis of Indian Indices

Nifty 50

• Recent Performance: Nifty 50 snapped a six-day winning streak on Friday but still posted a new high, nearly touching 26,300.
• Resistance Levels: 26,251, 26,280, and 26,328.
• Support Levels: 26,154, 26,125, and 26,077.
• Outlook: Nifty needs to sustain above 26,000 to aim for 26,500 in the coming sessions. The index formed a bearish candlestick pattern on the daily charts but maintained a bullish pattern on the weekly charts. Additionally, Trent and Bharat Electronics (BEL) are set to join Nifty 50 from Friday, while LTIMindtree and Divis Laboratories will be excluded.

Bank Nifty

• Recent Performance: Bank Nifty faced selling pressure, ending Friday below 54,000, pulling down Nifty 50 as well.
• Resistance Levels: 54,199, 54,334, and 54,554 (Pivot Points); Fibonacci retracement at 54,898 and 55,653.
• Support Levels: 53,759, 53,623, and 53,403 (Pivot Points); Fibonacci retracement at 53,327 and 52,631.
• Outlook: A Bearish Belt Hold pattern on daily charts signals caution, while the weekly charts display a Shooting Star pattern, indicating a limited upside.

Options Data Analysis

Nifty Call Options

• Key Resistance Levels: The 27,000 strike holds the maximum open interest with 66.5 lakh contracts, signaling strong resistance. Other significant strikes include 26,000 (39.91 lakh contracts) and 26,600 (38.25 lakh contracts).
• Call Writing: Maximum call writing occurred at the 27,000 strike with 4.85 lakh contracts.
• Unwinding: The 26,500 strike witnessed maximum unwinding with 1.45 lakh contracts.

Nifty Put Options

• Key Support Levels: Maximum open interest is at the 26,000 strike with 49.94 lakh contracts, showing strong support. Other notable strikes include 25,000 (35.92 lakh contracts) and 25,500 (32.04 lakh contracts).
• Put Writing: Maximum put writing was seen at the 26,400 strike with 3.44 lakh contracts.
• Unwinding: Significant unwinding was observed at the 26,100 strike with 26,025 contracts.

Stocks in the News

Several stocks are in focus due to important developments:

1. Trent and Bharat Electronics (BEL): Both will start trading on the Nifty 50 from today. BEL also received MCA approval to incorporate a JV company, BEL IAI AeroSystems, with Israel Aerospace Industries.
2. Apollo Hospitals: Rasmeli to acquire a 16.9% stake in Apollo Healthco for ₹2,475 crore, reducing Apollo’s stake to 78.87%.
3. Welspun Enterprises: Emerged as the lowest bidder for a ₹1,989.9 crore contract from the BMC.
4. Zydus Lifesciences: Received USFDA approval for Enzalutamide Capsules, 40 mg, for prostate cancer treatment.
5. Adani Energy Solutions: Signed a Business Transfer Agreement with NMPL to carve out Adani Dahanu Thermal Power Station.
6. Adani Enterprises: April Moon Retail, a joint venture unit, acquired a 74% stake in Cococart Ventures for ₹200 crore.
7. NHPC: Entered into a joint venture agreement with Andhra Pradesh Power for hydro and renewable projects.
8. LTIMindtree: Strengthened its partnership with UK-based retailer Currys to deliver IT solutions for retail.

Stocks Facing Regulatory Issues

1. Lupin: USFDA issued Form 483 with three observations for its Pithampur facility.
2. Biocon: USFDA issued Form 483 with four observations for its Bengaluru facility.
3. Jubilant Pharmova: The USFDA classified its Canada facility as Official Action Indicated (OAI).
4. Paytm: CEO Vijay Shekhar Sharma expressed regret over choosing the wrong bankers for the company’s IPO.
5. Zomato: Co-founder and Chief People Officer, Akriti Chopra, resigned effective September 27.
6. IDFC First Bank: Announced that its merger with IDFC Financial would be effective from October 1, with the record date for shareholders set as October 10.
7. ICICI Prudential Life Insurance: Received an income tax demand notice of ₹361 crore, including interest.
8. ICICI Lombard General Insurance: Received an income tax demand of ₹1,388 crore for the April 2021 to March 2022 period.

Foreign and Domestic Investment Activity

• FII (Foreign Institutional Investors): Net sellers, with a total outflow of ₹-1,209.1 crore on September 27, 2024.
• DII (Domestic Institutional Investors): Net buyers, with a total inflow of ₹6,886.6 crore on the same date.

PCR (Put-Call Ratio) for Indices (Weekly Expiry)

• Nifty: 1.0456
• Bank Nifty: 0.6905
• Fin Nifty: 0.7712
• Midcap Nifty: 0.9786
• Sensex: 0.7906

A PCR above 1 indicates a rise in bearish sentiment, while a PCR below 1 signals bullish sentiment.

Global and Indian markets are experiencing a mixed trend, with Japan’s Nikkei suffering heavy losses and US indices presenting a split picture. Investors are closely monitoring key upcoming economic data, such as the US jobs report and corporate earnings, to determine market direction.

Tags: Global Indices, Indian Markets, Nifty 50, Sensex, Dow Jones, Nikkei, US Markets, Technical Analysis, Stocks in News, September 30 2024 Market Update