The Nifty 50 Ends with Losses in September Series Despite Global Cues

The Nifty 50, one of India’s benchmark stock market indices, experienced losses on Monday for only the second time in September. This is surprising considering the multiple negative global cues, such as rising crude oil prices and the US Dollar index crossing the 105 mark. Experts are now focusing on the Federal Open Market Committee (FOMC) outcome. While the market expects the Fed to hold policy rates, the focus will be on the new dot plot projections and Jerome Powell’s press conference. The market is showing strength despite these uncertainties and is expected to gradually move upwards.

The short-term trend of the Nifty 50 is at the verge of a reversal on the downside, according to Nagaraj Shetti of HDFC Securities. However, he does not foresee sharp selling momentum. The Nifty Bank, on the other hand, closed below the 46,000 mark on Monday after a three-day losing streak. Despite attempts to close above its record high of 46,369, the index faced resistance. The key support for the Nifty Bank is the 45,800 – 45,700 zone. As long as it stays above these levels, the sentiment for the index remains bullish.

In terms of futures and options (F&O) cues, certain stocks saw fresh long positions on Monday, including Dr. Lal Pathlabs, Hindustan Aeronautics, PNB, JK Cement, and Titan. Some stocks witnessed short covering, such as CONCOR, REC, Pidilite, HDFC Life, and Mahanagar Gas. Meanwhile, Chambal Fertiliser, Lupin, Infosys, Persistent Systems, and Bandhan Bank saw unwinding of long positions.

In addition to these market updates, several companies have made notable announcements. Tata Motors plans to increase the prices of its commercial vehicles by up to 3 percent from October 1, 2023. Sashidhar Jagdishan has been reappointed as the MD & CEO of HDFC Bank for three years. Jio has launched JioAirFiber services in eight metro cities of India. Blue Star has initiated a qualified institutional placement (QIP) to raise Rs 1,000 crore. DCM Shriram has entered into a technical partnership with UAE’s Inventure Metal Products Industries LLC. BL Kashyap has secured new orders worth nearly Rs 167 crore, while IRFC has extended Shelly Verma’s tenure as additional CMD.

Overall, despite the negative global cues, the Nifty 50 has shown resilience. Market experts expect the market to gradually move upwards with minor profit booking at intervals. The Nifty Bank may struggle to surpass the 46,000 mark, but as long as it stays above key support levels, the sentiment remains positive. Investors are closely monitoring the FOMC outcome and the dot plot projections.