The Indian stock market ended Thursday’s trading session, September 3, with losses amid fears that global central banks, led by the US Federal Reserve, could raise interest rates to combat rising price pressures.
The sell-off in global bonds was another area of concern, as investors demanded higher compensation for holding government debt amid persistent inflation and rising debt levels following years of heavy government spending.
However, one positive trigger for the domestic market emerged as overseas investors turned net buyers, purchasing ₹6,688 crore worth of Indian equities on Wednesday even as the benchmark indices declined.
Analysts suggested that the sharp gap-down decline could present a buying opportunity rather than a reason for investors to reduce their exposure.
Indian stock market today
The Nifty ended the session with a decline of 0.17% at 23,873, while the Sensex finished 0.55% lower at 76,152. Both key indices have extended their losing streak to a fourth consecutive session.
The broader markets, however, recovered from their earlier losses, with the Nifty Smallcap 100 index surging 1.40%, while the Nifty Midcap 100 index gained 0.27%.
Sectorally, buying emerged in realty, media, chemicals, and private bank stocks, although these gains were partly offset by selling pressure in IT, FMCG, auto, and pharma stocks.
Meanwhile, in the commodity market, crude oil prices halted their three-day rally, falling 1.5% to $94.20 a barrel after US President Donald Trump said renewed attacks on Iran would likely be short-lived and reiterated his claim that the US controls the Strait of Hormuz.
The pullback in crude prices also eased pressure on Treasuries, which held on to gains from the previous session. The yield on the US 10-year Treasury fell to around 4.77% after reaching its highest level since late November.
The conflict in the region resumed over the weekend after the American military reportedly struck Iranian rocket launchers on an island in the Strait of Hormuz, while Tehran retaliated by targeting US military bases in the UAE and Jordan.
Asian markets trade mixed
Among other regional markets, Tokyo’s Nikkei 225 fell 0.2% to 64,214.48. South Korea’s Kospi, meanwhile, rose 0.3% to 6,579.48. Samsung Electronics slipped 0.2%, while memory chipmaker SK Hynix declined 1.1%.
In Hong Kong, the Hang Seng edged 0.6% lower to 25,167.96, while mainland China’s Shanghai Composite index gained less than 0.1% to 3,942.09.
Elsewhere, Australia’s S&P/ASX 200 gained 0.5% to 9,020.10. Taiwan’s Taiex fell 0.7%.
Can Nifty and Bank Nifty overcome key resistance zones?
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty started on a gap-up note but faced resistance near the lower band of the rising channel, triggering selling pressure throughout the day. He noted that a Dark Cloud Cover candlestick pattern has formed on the daily timeframe, indicating potential weakness in the near term.
De sees support at 23,850, below which the index may decline towards the 23,700–23,730 zone. On the upside, resistance is placed at 24,000, with a sustained move above this level required to negate the immediate bearish bias.
Ponmudi R, CEO of Enrich Money, said Bank Nifty closed on a mildly positive note after opening with a gap-up but failed to sustain its initial strength, subsequently returning to its broader trading range. He said the recovery attempt faced selling pressure in the 57,700–57,800 region, indicating continued supply at the upper end of the prevailing range.
He sees the 57,800–58,000 region as the major resistance band, with a decisive and sustained breakout above 58,000 required to turn the near-term sentiment decisively bullish. On the downside, the 57,300–57,200 zone remains the immediate support area.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said that the weak sentiment is likely to continue as long as the Sensex trades below the 76,700 mark. On the downside, the index could slip towards the 76,000–75,700 zone.
However, a sustained move above 76,700 could improve sentiment and trigger positive momentum, potentially pushing the Sensex towards the 77,000–77,200 range.
Will global indices break out of their consolidation ranges?
Vipin Kumar, AVP-Research at Globe Capital Market, said the Dow Jones Industrial Average’s three-day losing streak came to a halt near its 52,700-spot support level, which also coincides with the 50-day EMA on the daily charts.
Kumar said sustained trading above the 53,300-spot level could push the index towards 53,800–54,000 in the near term. Conversely, a fall below the 52,600–52,700 zone could drag the index towards the 51,600-spot level.
On the Kospi, Kumar noted that the index has been hovering within a congestion range of 6,400–7,000 for the past 12 trading sessions. He expects the sideways movement to continue as long as the index remains within this range, with a breakout on either side likely to trigger the next short-term directional move.
For the Hang Seng, Kumar said the index is trading near the lower band of its month-long congestion range of 25,000–26,100. A decisive move below the 25,000 level could drag the index towards 24,300, while sustained trading above 25,550 could push it back towards the upper end of the range at 26,100.
Meanwhile, Kumar said the Nikkei has been trading sideways in an indecisive manner over the past couple of weeks, in line with other global markets. He sees a sustained move above 65,200 potentially pushing the index towards 66,500–67,000, while a fall below 63,800 could drag it towards the 61,200–62,000 range in the near term.
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