Indian equity markets opened on a subdued note, with the Nifty index hovering below 25,000.
At 09:55 a.m. IST, the Nifty 50 traded 14 points higher at 24,987, while the Sensex was up 61 points at 81,486. Broader markets mirrored the cautious sentiment, with the Nifty Midcap index trading flat and the Smallcap index trading 0.2% higher.
The retail sentiment on Stocktwits for Nifty has shifted to ‘neutral’ at market open.
Stock Watch
Sectorally, technology saw some profit booking after the run-up in the last two sessions, while energy and pharma saw some buying.
Infosys shares fell 1% ahead of its board meet today to mull a buyback proposal.
Tega shares fell 2% at open and recovered after the company, along with Apollo Funds, signed a term sheet to acquire mining supplier Molycop for $1.5 billion. The board will meet on September 13 to discuss potential fundraising options.
Adani Power rose 1% following a block deal.
Jupiter Wagons surged 7% after its subsidiary secured a letter of agreement from the Ministry of Railways for supplying 9,000 LHB axles worth ₹113 crore.
Aurobindo Pharma rose over 1% after reports indicated that GTCR is the likely frontrunner to acquire Advent’s Zentiva. Aurobindo was also reportedly in fray for this buyout.
On the other hand, Dr Reddy’s slipped over 1% after completing the $50.5 million acquisition of Johnson & Johnson’s Stugeron brand.
Stock Calls
Analyst Vinayak Gautam shared three stock recommendations for Thursday with a 1-week timeframe:
HEG - Buy at ₹508, with a target price of ₹520, and stop loss at ₹504
ICICI Bank - Buy at ₹1,403, with a target price of ₹1440, and stop loss at ₹1,390
Olectra Greentech - Buy at ₹1,612, with a target price of ₹1650, and stop loss at ₹1,590
Markets: The Road Ahead
From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup.
Pradeep Carpenter noted that the overall market bias remains constructive above 24,800, but a meaningful rally hinges on a break past 25,150. He advised traders to track the US CPI data tonight and the Infosys board outcome closely.
Ashish Kyal said that a break above 25,030 levels can lead to an upmove towards 25,100 or higher. On the downside, support is seen near 24,870. He noted that Puts implied volatility (IV) has been crashing for the past two sessions, suggesting the perception of reduced risk.
Prabhat Mittal identified Nifty support at 24,850, with resistance at 25,150. For Bank Nifty, he sees support at 54,200 and resistance at 54,900.
Global Cues
Globally, Asian markets traded mixed, while crude oil prices settled higher.
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