Nifty and Bank Nifty Today: Technical Analysis Predicts Potential Upside for September 4, 2024
As the Indian stock market gears up for trading on September 4, 2024, analysts are closely watching the Nifty and Bank Nifty indices for potential opportunities. According to technical analysis, the Nifty is expected to find support around 25,160, with near-term support in the 25,000-24,950 range. On the higher side, resistances are seen at 25,400 and 25,500.
The Bank Nifty index, on the other hand, is facing an immediate hurdle at the 61.8% retracement of its recent correction, which lies in the 51,900-52,000 range. A breakout above this level could lead to fresh buying interest in the index components. Supports for the banking index are placed around 51,300 and 51,000.
Main Points
Fundamental Analysis Highlights Potential Bargains
While the market remains volatile, there are potential bargains for investors who focus on stocks with strong fundamentals trading below their intrinsic value. A recent screener for undervalued Japanese stocks based on cash flows identified several promising candidates, including Densan System Holdings, Kotobuki Spirits, and Stella Chemifa.
One notable stock is KeePer Technical Laboratory, which develops, manufactures, and sells car coatings, car washing chemicals and equipment, and other related products in Japan. The company’s earnings grew by 22% last year and are forecast to grow annually by 11.59%, outpacing the JP market’s 8.7%.
Market Outlook and Tomorrow’s Forecast
The Nikkei 225 Index fell 0.4% to around 38,220, while the broader Topix Index lost 0.2% to 2,686 on Thursday, snapping a two-day advance as losses in technology stocks outweighed gains in other sectors. Domestically, investors continued to assess the path for Bank of Japan monetary policy after BOJ Deputy Governor Ryozo Himino said the central bank will adjust the degree of monetary accommodation if the outlook for economic activity and prices are realized.
Looking ahead, the Japan Stock Market Index (JP225) is expected to trade at 31,660.22 points by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. However, it is important to note that these are forecasts, and actual market performance may vary.
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Key Factors Driving Market Movement
Several factors are influencing the current market trends, including:
- US manufacturing data: The Institute for Supply Management reported on Tuesday that U.S. manufacturing remained weak, despite a slight improvement in August from an eight-month low in July.
- Potential interest rate cuts: Investors are bracing for a monthly U.S. payrolls report that could influence the size of a likely interest rate cut this month.
- Oil prices: Oil prices remained near multi-month lows amid signs of a resolution to the dispute that has halted Libyan crude production and exports.
- Asian market performance: Asian stocks weakened on Wednesday following Wall Street’s steepest drop since the August 5 market selloff, with tech shares mirroring losses in the U.S.
Today’s Update and Intraday Trading Levels
In today’s trading session, the Nifty consolidated within a narrow range and ended the day marginally positive around 25,300. The Bank Nifty index also consolidated within a narrow range, but an upmove was seen in the index in the last hour of trade led by the private sector heavyweights.
Traders are advised to look for stock-specific buying opportunities and trade with a positive bias. The immediate support for Nifty is placed around 25,160, followed by near-term support in the 25,000-24,950 range. On the higher side, the resistances for the index are seen around 25,400 and 25,500.
Comparing Peer Stocks and 52-week Highs and Lows
When analyzing the performance of individual stocks, it is essential to compare them to their peers and consider their 52-week highs and lows. For example, Akzo Nobel India has been in a strong uptrend since March this year, with the stock rising over 2% on Tuesday, indicating that the uptrend has resumed after a short correction.
In contrast, some stocks like Lasertec (-3.5%), Disco Corp (-4.2%), Tokyo Electron (-1.7%), SoftBank Group (-1.8%), and Advantest (-1.4%) have seen significant losses in the technology sector. These stocks are trading well below their 52-week highs, and investors should carefully consider their future prospects before making investment decisions.
Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock
