Guide to trading today, August 20: Domestic benchmark indices Sensex and Nifty are likely to start the session higher, as per GIFT Nifty futures.
At around 7:01 am, GIFT Nifty futures rose 62.75 points to 24,658.5.
The trend follows a positive close on Wall Street overnight, where the Nasdaq Composite rose 1.4 percent, the S&P 500 rose 0.9 percent and the Dow Jones Industrial Average rose 0.6 percent.
In Asia, Japan’s Nikkei 225 rose 1.60 percent, while the broad-based Topix rose 0.95 percent.
The South Korean Kospi rose 0.77 percent and the small-cap Kosdaq rose 0.92 percent.
This is how analysts assess today’s trading session (20 August):
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities:
Nifty is currently trading at the hurdle of the upper range of the previous downside gap of August 5 at 24685. The short-term trend of Nifty remains positive. Having hit the key overhead resistance at around 24700, there is a possibility of further consolidation or a minor decline in the next one or two sessions before another round of upside breakouts. The immediate support is at 24400.
Shrikant Chouhan, Head of Equity Research, Kotak Securities
We believe that the overall market structure is still positive, but a new upside move is only possible after the 24650/80725 falls. Above this, the market could rise to 24725-24775/81000-81200. On the other hand, below 24520/80330, intraday selling pressure is likely to intensify. Below this, the 24450-24400/80000-79800 level could be tested again.
Rupak De, Senior Technical Analyst, LKP Securities:
On the upside, the Nifty could move higher with resistances at 24,750-24,800.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:
We believe Nifty is about to close the gap. On the upside, 24650 – 24700 is the immediate hurdle zone while 24390 – 24350 is the immediate support zone. Overall, from a short-term perspective, we expect a range-bound move in Nifty in the 24800 – 24200 zone.
Talking about Nifty Bank, Gedai said, Nifty Bank has been weaker compared to Nifty and lagged in the retracement process. Daily as well as hourly momentum indicators have a positive crossover, which indicates that this correction is recommended for buying. Therefore, positive upside is also expected in Nifty Bank and we expect levels of 51000 – 51500 from the short term perspective. On the downside, 50240 – 50200 is the crucial support zone.
FII, DII Update: How much were FIIs and DIIs bought and sold on August 19?
According to NSE data, foreign institutional investors (FII) sold Indian equities worth Rs 2,667.46 crore net on Monday, August 19.
On the other hand, DIIs were net buyers of shares worth Rs 1,802.92 crore.
IPO listing today: Saraswati Saree Depot
Saraswati Saree Depot shares will be listed on the stock exchange today.
Ahead of the listing, the unlisted shares of Saraswati Saree Depot IPO, whose subscription period ended on Wednesday, August 14, 2024, continue to fetch a strong premium in the grey market, indicating solid listing gains for investors.
According to several websites that track grey market activity, Saraswati Saree Depot shares are fetching a grey market premium (GMP) of around Rs 46, representing a gain of about 29 percent over the upper end of the IPO price.
A quick look at Indian stocks on Monday:
After the stellar performance on Friday, Nifty took a breather with range-bound movement on Monday and closed the day up 31 points. After a positive opening, the market failed to sustain the opening gains and slipped into mild weakness from the highs in the early part of the session. It moved into a tight range in the middle to later part and closed the day with choppy movement.
First published: August 20, 2024 | 7:47 am IS
