Zee Business Stock, Trading Guide: Indian stock markets today closed in the red taking cues from their US counterparts which continued to fall even on Thursday after the Federal Reserve hiked interest rates by 75 bps, the previous day. The move triggered surge in Dollar Index against top currencies including the Indian Rupee which fell to record all time lows today. The INR ended at 80.79 against the greenback.
Indian indices BSE Sensex and Nifty50’s decline could be attributed to the weakness in rupee even as the interest rate hike by the US Central Bank was in-line with the expectations. Fed Chair Jerome Powell indicating more aggressive hikes in subsequent FOMC (Federal Open Market Committee) meetings, acted as spoilsport with Wall Street turning red from an optimistic Wednesday opening.
Also a day of weekly expiry, BSE Sensex today ended at 59,119.72, down by 337.06 points or 0.57 per cent which was. Meanwhile, the 50-share Nifty50 settled at 17629.80, down by 88 points or 0.5 per cent from the Wednesday closing price.
Out of the 15 sectoral indices, 7 ended in the green while remaining in the red. Nifty Bank was down 1.4 per cent at the closing time and was trading at 40,630.60. Nifty FMCG was the biggest gainer, higher by 1.30 per cent to close at 45,080.45.
When markets reopen on Friday, there will be several triggers to watch out for:
1) The movement of Dollar Index (DXY) will likely be crucial as the impact will be on Rupee. Expert Anuj Gupta of IIFL Securities said that Rupee could test levels around 82 in the near term. Zee Business Managing Editor Anil Singhvi, today, in one his shows said that DXY above 112 could ring alarm bells for the domestic markets and participants must watch out for it.
2) Investors and traders must watch the closing of the US Markets today – Dow 30, Nasdaq Composite, S&P 500.
Source: Comex (At the time of filing of story)
3) Foreign Institutional Investors (FIIs) / Domestic Institutional Investors (DIIs) data – FIIs sold Indian equities worth Rs 2509.55 cr while the DIIs bought stocks worth Rs 263.07 cr.
4) Securities in Ban For Trade Date 23-SEP-2022: Ambuja Cements, Can Fin Homes, Delta Corp, Punjab National Bank, RBL Bank.
5) Anil Singhvi Trading Strategy: Nifty50 will find support at 17425-17525 while resistance at 17725-17825 if US markets close on weak note on Thursday. He said that if the markets close one sided, we may see them taking a direction and if the trade in a range between 17500 and 17800, it will be a good sign as the trends for upside remain intact. #BazaarAajAurKal
6) As for Bank Nifty, the support is a range between 40200 and 40500 which is a big range while the resistance is seen at 40900-41150. He said that there could be minor corrections in it for 1-2 trading session and eventually it will take a leadership position.
7) Bulk Deal: Over two dozen companies witnessed bulk deal action on the NSE today so investors can expect stock specific action. Bharti Telecom bought 940,00,000 shares in Bharti Airtel Limited at Rs 772.50 per share while Pastel Limted sold as many shares in it at the same price. Graviton Research Capital LLP bought 14,79,767 shares in KPIT Technologies Limited at Rs 640.47 per share while Graviton Research Capital LLP sold 14,79,767 shares at Rs 640.77 in KPIT Technologies. Ajooni Biotech, Bodhi Tree Multimedia and Mcleod Russel India were among other companies which saw bulk transactions.
8) Market Expert Avinash Gorakshkar tells Zee Business that Powell’s commentary on interest rate was the trigger behind today’s market fall. He said that the fears of inflation in US will have some impact on the Indian markets as well.
9) He recommends investors to focus on domestic companies and sees correction as buying opportunities. Investors will gain over a long term period and must exercise patience, he advised.
10) Stocks to Buy: Cummins India – Buy for target of Rs 1457 with a 8-12 month horizon. The stock today ended at Rs 1,252 on the NSE, down by 0.12 per cent from the last closing price.