The Indian stock market is expected to open flat on Wednesday, 16 September, with mixed global cues influencing sentiment. According to reports from LiveMint, the Gift Nifty indicated a subdued start, trading around 23,212, down 10 points from the previous close of Nifty futures. The domestic equity market ended sharply lower in the previous session, with the Sensex falling 777.94 points, or 1.04%, to close at 74,003.82, while the Nifty 50 declined 279.50 points, or 1.19%, to settle at 23,118.60. The Nifty 50 has been falling and forming lower lows and lower highs, with overall index short positions by FIIs rising, indicating an oversold reading.
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, has identified three stocks for short-term trading in the F&O segment. As reported by LiveMint, he recommends Max Healthcare Institute futures in the range of ₹1,020-1,040 with stop loss below ₹970 and targets of ₹1,080-1,120. For Vedanta futures, he suggests selling in the range of ₹254-260 with stop loss above ₹266 and targets of ₹240 and ₹230. Additionally, he recommends IDFC First Bank futures on rise near ₹86 with stop loss above ₹88 and targets of ₹82.50 and ₹81.
According to Thakkar's analysis reported by LiveMint, the Nifty Pharma and Healthcare sectors have been outperforming the broader market for some time, with the overall trend remaining positive. For Max Healthcare, significant short covering has helped the stock rebound strongly to ₹1,000 and above, with the ₹1,000 strike having the highest put base as immediate support. The BankNifty has weakened despite positive moves by HDFC Bank, with the short-term trend remaining weak unless the 57,000 level is taken out. The FOMC meeting starting on the 15th and concluding on the 16th will be a key trigger for markets, with current weakness potentially factoring in Fed rate hike expectations due to higher inflation driven by higher crude oil prices.
As reported by LiveMint, the 23,000 strike has the highest put base in options data, indicating it is immediate support for the Nifty 50. Below 23,000, the next support levels are identified at 22,800 and 22,500. For Max Healthcare, the ₹1,040 strike has the highest call base, while for Vedanta, significant call additions are seen at the ₹260–270 strikes with resistance at higher levels. The Dollar Index moving above 100 level is a short-term concern for commodities, with expectations of Fed rate hike potentially weighing on metal consumption.
