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  5. NIFTY50 holds 25,000 support as pharma and FMCG stocks lead recovery

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NIFTY50 holds 25,000 support as pharma and FMCG stocks lead recovery

Upstox
By Upstox News Desk

3 min read | Updated on September 04, 2024, 18:41 IST

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SUMMARY

The NIFTY50 options data for the 5 September expiry shows the highest call and put bases at 25,300 and 25,000 strikes. This broadly suggests that traders are expecting a range-bound expiry. However, a break of these levels on an intraday basis will provide directional clues.

Stock list

JSWSTEEL
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HINDPETRO
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ASIANPAINT
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MAZDOCK
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NIFTY50 holds 25,000 support as pharma and FMCG stocks lead recovery

NIFTY50 holds 25,000 support as pharma and FMCG stocks lead recovery

Markets snapped their 14 day winning streak, losing nearly half a percent amid weak global cues. Mirroring the trends in other Asian markets, the NIFTY50 index opened with a gap down following a fall in the U.S. markets. However, selective buying in heavyweight stocks helped trim losses.

On the sectoral front, defensive segment like Healthcare (+0.8%) and FMCG (+0.4%) provide support to the markets, while PSU Banks (-1.6%) and IT (-0.9%) were the biggest laggards.

Also Read: Key things to know about Bajaj Housing Finance IPO

The technical structure of the NIFTY50 index remains positive as the index protected the key support zone of 25,150 and 25,200 on a closing basis. However, the index slipped below this zone on an intraday basis, recovering more than 100 points from the day's low.

Going forward, the index will face immediate resistance around the 24,350 zone, as option writers have established a significant call otpions base around this level. On the other hand, weakness will only occur if the index falls below 25,100, making it a crucial support zone for positional traders.

  • Top gainer and loser in NIFTY50: Asian Paints (+2.5%) and Wipro (-3.0%)

  • The broader markets bounced back strongly from the day's lows to close broadly flat. The NIFTY Mid cap 100 index closed with a marginal loss of 0.1%, while the Small cap 100 index ended the session flat.

  • Top gainer and loser in NIFTY Midcap 100: Mazagon Dock Shipbuilders (+7.4%) and Oil India (-6.2%)

  • Top gainer and loser in NIFTY Smallcap 100: PNB Housing Finance (+5.2%) and RBL Bank (-4.0%)

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Key highlights of the day

⚙️JSW Steel was in focus after the company secured funding from Japanese lender MUFG Group to acquire a coking coal mining company in Australia.
⛽Oil marketing and Paint companies were in spotlight after crude oil prices more than 4% on Tuesday. As the price of crude oil falls, companies benefits from lower input costs, which allows them to increase their profit margins. Against this backdrop, shares of Hindustan Petroleum and Asian Paints advanced in the range of 2% to 4%.
💣Defence stocks remained in focus for the second consecutive day after the Defence Acquisition Council approved procurements worth ₹1.4 lakh crore. Shares of Mazagon Dock and Cochin Shipyard rose in the range of 2% to 7% while Hindustan Aeronautics ended the day marginally higher.

Top traded futures contracts

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Top traded options contracts

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4 trading insights from NIFTY 200🔍

📉Open=High (Bear power): Coal India, Tata Power, Tata Chemicals, Dixon Technologies and Dr Reddy’s Laboratories

📈Open=Low (Bull power): Asian Paints, Pidilite Industries, Apollo Tyres, Hero Motocorp and Astral Pipes

🏗️Fresh 52 week-high: Biocon, Hindustan Petroleum, ICICI Prudential, Hindustan Unilever, Lupin and Alkem Laboratories

⚠️Fresh 52-week-low: N/A

And that's it for today's F&O recap! Get the full scoop on market trends and curated scans at https://pro.upstox.com/

See you tomorrow!

Uplearn

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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