Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
After two days of sharp correction, benchmark indices witnessed a sharp pull back rally while Nifty found support at 17326 to reverse the falling trend. Technically, the texture of the sharp reversal formation near the 10 day SMA suggests further uptrend from the current level.
We are of the view that while the short-term trend still looks up, uncertain global market conditions could see the Nifty within the range of 17650-17450 levels. For day traders, as long as the index is trading above 17450, pullback rally is likely to continue up to 17600-17650-17680 levels. On the flip side, index below 17430, the uptrend would be vulnerable.
Sachin Gupta, AVP, Research at Choice Broking:
Technically, the Nifty50 has recovered from the immediate support around 17,270 levels and sustained above 9 days SMA & Middle Bollinger Band formation, which indicates further strength for the next trading session.
On an hourly chart, the Nifty index has given a breakout of falling channel formation and showed positive crossover in stochastic & RSI, which supports the upward trend. At present, Nifty has its crucial support at 17,250 levels, while resistance lies at 17,650 levels.
Santosh Meena, Head of Research, Swastika Investmart:
Indian market witnessed smart recovery after yesterday’s fall on the back of a recovery in US future and Europe markets, however we were showing strong resilience for the last many days and outperforming our global peers. Indian economy is showing strong recovery and worry of covid cases is dwindling therefore India looks a safer bet for foreign investors amid concern in other emerging markets.
Other than global markets recovery some other factors were playing out for today’s strong performance by Indian markets. First, there was no FIIs’ seeling in yesterday’s trading session despite a sharp fall that led to positive sentiment. Second, the Nifty Put call ratio dipped to 0.98 level which was an oversold territory and that led to a short-covering rally in our market.
Volatility may continue ahead of the FOMC meeting as there is fear that the US fed may talk about the timeline of tapering which could be as earlier as November. The dollar index and US bond yields are showing some signs of upside momentum ahead of the FOMC meeting and if they continue their upward movement then there could be a risk of FIIs selling in the near term in Indian equity markets as well therefore next few days are going to be critical for global markets.
Norbert Rücker, Head Economics and Next Generation Research, Julius Baer:
Oil prices climbed back towards USD 75 per barrel, digesting the latest pandemic hiccups very well. The bigger picture might be changing. With demand growth slowing, the incremental return of shale and petro-nation supplies suggests that the cycle is mature and the pressure on prices should grow with time. We see oil prices swinging around the low 70s price levels.
The oil market could continue to tighten in the near term, but eventually the gap between demand and supply narrows and storage bottoms out. We see the oil market’s cycle at, or close to, its peak and expect growing headwinds to prices in the longer term.
The reward of the now more limited further upside seems less attractive against the risk of geopolitics, fragile petro-nation cohesion, and the inherent uncertainties currently posed by the property-related news flow out of China.
Kotak Mahindra Bank forays into Healthcare Financing
To bring a sharper focus to the healthcare sector with a targeted set of product offerings, Kotak Mahindra Bank (KMBL) today announced that it has launched a tailored and holistic suite of healthcare financing solutions ranging from healthcare infrastructure loans, medical equipment finance and unsecured healthcare loans, catering to key stakeholders in the healthcare ecosystem including hospitals, laboratories, diagnostic centres, nursing homes, clinics, doctors and medical equipment manufacturers & dealers.
KMBL has introduced a comprehensive bouquet of offerings at attractive interest rates to meet the financing requirements of all the key players. This includes innovative lending facilities such as the Insta Programme for quick approval of loans up to Rs 50 lakh.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic indices staggered during the early trading session however positive trends in the global markets comforted Indian equities to rebound during the second half. Global stocks recovered from the fears sparked by troubles in the Chinese economy, ahead of the FOMC meeting that will start later in the day. All major sectors traded in the green zone while the auto sector remained under pressure due to rising input costs and the semiconductor shortage faced by the global auto industry.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Sharp recovery has been witnessed from good support zone as mentioned and closed a day at 17,562 with gains of one percent and formed a bullish candle on daily chart after two bearish candles. Now going forwards 17,600-17,660 will act as resistance zone also one can lock their long gains around said levels and supports are placed at 17,500-17,430 zone and any dip near said levels will be again buying opportunity with keeping immediate stop out level below 17,500 zone and overall range is coming in between 17,300-17,800 zone.
Market Close: Benchmark indices ended higher with Nifty closing above 17,500 amid mixed global cues.
At close, the Sensex was up 514.34 points or 0.88% at 59,005.27, and the Nifty was up 165.10 points or 0.95% at 17,562. About 1551 shares have advanced, 1602 shares declined, and 165 shares are unchanged.
JSW Steel, Bajaj Finance, ONGC, IndusInd Bank and Bajaj Finserv were the top Nifty gainers. Maruti Suzuki, BPCL, Hero MotoCorp, Bajaj Auto and Nestle were among the top losers.
Except power and auto, all other sectoral indices ended in the green, with realty, it and metal indices up 2-3 percent. BSE midcap index rose nearly 1 percent, while smallcap index was up 0.2 percent.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some volatile movements and an attempt to hold the level around the Nifty 50 Index level of 17,450-17,500. It suggests that 17,450-17,500 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 17,450-17,500, market can witness higher levels of 17,850. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.
Shantanu Mazumder, Executive Director – Karnataka, Knight Frank India:
Karnataka Government’s decision to slash stamp duty by 2% will provide marginal boost to the real estate sector. Although the move is definitely progressive, it will only make marginal difference to the volume of sales because 2% is capped for properties worth 45L only. While it will save cost to homebuyers, the volume of sales below 45L is restricted. Had the stamp duty cut been across the price categories as was done by the Maharashtra government, the impact would have been desirable. Limiting it to properties worth up to Rs 45 lakh may not lead to volumes.
HDFC announces festive home loan rates at 6.70%
HDFC unveiled its special limited period offer for the upcoming festival season. Under this special offer, customers can avail HDFC Home Loan starting at 6.70% pa effective 20th September 2021. This Offer will be applicable to all new loan applications irrespective of the loan amount or employment category.
Housing Development Finance Corporation was quoting at Rs 2,761.10, up Rs 17.75, or 0.65 percent on the BSE.