The Indian stock market is expected to open in the green on Monday as SGX Nifty trends hinted at a positive start for Indian benchmarks, with a gain of 43 points. In the previous session, the BSE Sensex fell nearly 1,100 pts to 58,841, while the NSE Nifty 50 plunged around 350 pts to 17,531. “Indian markets were the worst performers in the Asian pack on Friday as higher inflation and likely aggressive rate hikes from the US Fed sent stocks down across the board. We will likely see strong bouts of volatility over the coming sessions as the global slowdown looms on the horizon. Technically, the double top formation on the daily and intraday charts and the bearish candle on the weekly charts indicate further weakness from current levels,” said Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities.
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Global market watch: U.S. stocks ended in the red on Friday, falling to two-month lows as a looming global slowdown warning from FedEx accelerated investors’ flight to safety at the end of a tumultuous week. The Dow Jones Industrial Average fell 0.45%, the S&P 500 lost 0.72% and the Nasdaq Composite fell 0.9%. Meanwhile, stocks in the Asia-Pacific region were mixed on Monday ahead of major central bank meetings this week. The S&P/ASX 200 in Australia was up 0.11%, while the Kospi in South Korea opened higher before falling 0.45%. The stock market in Japan remained closed for a public holiday.
Clever technical view: “A long bearish candle has formed on the daily chart, which has engulfed the range move of the past 9-10 sessions with a positive bias over the past two sessions. Technically, this faster retracement to the downside could mean more weakness for the market ahead Nifty on the weekly chart formed a long range bearish candle with the bearish candle formation as a dark cloud cover Last week’s chart pattern confirms a false bullish breakout of significant resistance the downtrend line at the 17900 levels. The short-term trend at Nifty appears to have reversed. The formation of a bearish candlestick pattern on the daily and weekly chart indicates greater weakness ahead for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Levels to watch: “Markets have shown considerable strength so far amid the global turmoil, but continued fear of aggressive rate hikes from the US Fed capped the upside and also triggered interim declines. Dominant market structure combined with signals from US markets point to further decline A breakdown below 17,500 in Nifty could push the index into the 17,150 area. would act as a hindrance. We believe that participants should stay light and maintain their positions on both sides. For the rest, we reiterate our preference for private bank counters and suggest using the correction to build them up in a staggered fashion. On the other hand, IT and Pharma look weak to us and may be considered for short trades,” said Ajit Mishra, VP – Research. he, Religare Broking.
Commercial Setup: “The performance of the Indian market has shown resilience over the past two months and outperformed the major global market by a higher margin. We believe that macroeconomic factors will continue to influence the market and, in the short term, market performance will be limited. We could see the reaction going both ways. On Friday, we saw weakness in equities ahead of the Fed meeting scheduled for this week. We think the market is likely to be volatile in the near term as the global central bank may surprise the market by raising interest rates beyond current market estimates,” said Neeraj Chadawar, Head of Quantitative Equity Research. stocks, Axis Securities.
“The current setup is a bearish buy market, and investors should use volatility over the next few weeks in a gradual fashion to build a 12-18 month view position in quality companies where earnings visibility is In this environment, domestically oriented themes such as banks, consumer staples, hospitals, domestic industrials and consumer discretionary are well positioned relative to export and market oriented themes. cycle,” he added.
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Stocks under F&O ban on NSE: Indiabulls Housing Finance, India Cements, PVR and RBL Bank are the four stocks on the NSE F&O ban list for September 19. Securities so prohibited in the F&O segment include companies whose derivative contracts have exceeded 95% of the market-wide position limit. .