The stock market today is expected to open in the positive territory, with GIFT Nifty futures up 88.3 points at 24,884 as of 7:04 AM. This positive sentiment follows gains in US markets on Wednesday, where the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all finished higher. The summary of the Federal Reserve’s policy meeting last month reinforced hope for lower rates in the near term, contributing to the market’s upward trend.
In Asia-Pacific markets, investors are awaiting flash business activity data from Australia, Japan, and India throughout the trading day. At the last count, Nikkei was up 0.86 percent, Kospi rose 0.13 percent, ASX 100 was up 0.29 percent, Hang Seng was unchanged, and Shanghai was flat with a negative bias.
Experts in the field, such as Nandish Shah from HDFC Securities, believe that the short-term trend of Nifty continues to be positive with range-bound action. The market is expected to challenge another opening down gap resistance of August 2 around 24,960, with potential movement towards 24,960 and 25,100 levels in the next week. Immediate support is placed at 24,650 levels.
Osho Krishan, Senior Analyst at Angel One Ltd, notes that Nifty is steadily approaching the critical resistance of the bearish gap situated around 24,850-24,950. This level will be crucial to monitor given the current momentum. On the downside, a gradual upshift in the support base is evident, with 24,650-24,600 likely to provide a cushion for any potential setbacks.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, highlights a negative divergence developing on the momentum indicator, suggesting that the uptrend could be slow with possible intraday pullbacks. Key support and resistance levels are identified for short-term perspective, with a focus on maintaining a stop loss for long positions.
In terms of FII and DII activity on August 21, Foreign Institutional Investors were net sellers of Indian equities worth Rs 799.74 crore, while Domestic Institutional Investors were net buyers of equities worth Rs 3,097.45 crore.
Additionally, BSE SME IPOs for Rapid Multimodal Logistics and Resourceful Automobile are in focus. Rapid Multimodal Logistics‘ IPO is worth Rs 8.49 crore and will conclude on August 27, while Resourceful Automobile’s IPO will open for bidding today and close on August 26.
On Wednesday, domestic benchmark indices ended with small gains, led by consumer stocks, while a drop in financials weighed on benchmark indexes. The NSE Nifty 50 index rose 0.29 percent to 24,770.2, and the S&P BSE Sensex added 0.13 percent to 80,905.3.
Overall, the Indian share market today shows signs of positivity and potential for growth, with various factors influencing market movements and investor sentiment. Stay tuned for further updates and developments in the stock market.