Stock market today: The Indian stock market is expected to open lower on Wednesday, 2 September, amid weak global cues, rising global bond yields, and a spike in crude oil prices due to fresh tensions between the US and Iran.
The Gift Nifty, or the Nifty futures contracts traded on the NSE International Exchange (NSE IX) at GIFT City, Gujarat, was signalling a negative start for the domestic stock market. Around 6:50 AM, the Gift Nifty was trading around 24,042, indicating a discount of 48 points to the previous close of Nifty futures.
The domestic market benchmarks ended in the red in the previous session. The Nifty 50 closed at 24,055.80, down 0.10%, while the 30-share Sensex slipped 0.02% to close at 76,944.28.
US markets
Wall Street ended lower, pressured by rising oil prices, escalating US-Iran conflict, and a selloff in global bond yields. The Dow Jones Industrial Average declined 419 points, or 0.79%, to 52,766.93, the S&P 500 dropped 55 points, or 0.71%, to 7,631.47, and the Nasdaq Composite crashed 271 points, or 1.03%, to 26,099.77.
Asian markets
Japan’s Nikkei and Korea’s Kospi crashed up to 3% amid rising global bond yields, fresh tensions between the U.S. and Iran, and higher oil prices.
Bond yields surging globally
Bond yields are surging globally as investors jump into a bond-selling spree amid growing inflation concerns driven by higher energy prices and ballooning government debt.
The US 10-year bond yield jumped to 4.81% to multi-year high of 4.81%, while Japan’s 10-year bond yield reached 3% for the first time since 1996. U.K. 10-year government bonds- Gilts- jumped to 5.23%, their highest level since June 2008.
Crude oil prices
Brent crude futures jumped over 1% to trade near $96 per barrel after renewed tensions between the US and Iran.
The US and Iran exchanged fire on Tuesday, as Tehran launched missiles and drones in retaliation for a fresh wave of US strikes, escalating a conflict that had briefly eased after a month without direct military action.
Dollar index rises
The US dollar index, which measures the greenback’s strength against a basket of six major global currencies, hovered near its two-week high of 99.73.
Indian stock market set-up
The Indian stock market may remain volatile on Wednesday, 2 September, due to rising global bond yields, higher oil prices, and dimming prospects of a resolution to the US-Iran conflict anytime soon.
On the technical front, the Nifty is holding the support of 24,000. Experts believe a breach of this level on the downside can accelerate the fall.
According to Nandish Shah, Deputy Vice President at HDFC Securities, the 24,200–24,250 band may continue to act as strong resistance, with multiple moving averages clustered there. A sustained close below 24,000 could drag the index toward the next support band of 23,823–23,890, said Shah.
Ajit Mishra, SVP- Research at Religare Broking, pointed out that the index is trying to defend 24,000 on a closing basis, but the overall trend remains weak and vulnerable to further downside toward the 23,900–23,800 zone.
On the upside, Mishra believes the 24,150–24,250 zone, coinciding with multiple technical hurdles, is expected to act as a resistance band.
“We recommend continuing with ‘sell on rise’ in the Nifty and maintaining a stock-specific approach based on the sectoral performance, while adhering to strict risk and position management,” said Mishra.
Stocks to buy today
Even in a volatile market, there are stock-specific opportunities. Three market experts – Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher- recommended the following eight buy-or-sell stocks for intraday trading on Tuesday:
Expert: Sumeet Bagadia, Executive Director at Choice Broking
Welspun Living | Buy at ₹198.4 | Target price: ₹212 | Stop loss: ₹191
IPCA Laboratories | Buy at ₹1,988 | Target price: ₹2,127 | Stop loss: ₹1,918
Expert: Ganesh Dongare, Senior Manager of Technical Research at Anand Rathi
TCS | Buy at ₹2,369 | Target price: ₹2,430 | Stop loss: ₹2,330
Eternal | Buy at ₹327 | Target price: ₹342 | Stop loss: ₹315
ONGC | Buy at ₹235 | Target price: ₹242 | Stop loss: ₹230
Expert: Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher
Himadri Speciality Chemical | Target price: ₹725 | Stop loss: ₹665
Garuda Construction and Engineering | Target price: ₹190 | Stop loss: ₹175
(With inputs from Reuters)
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
