Indian Stock Market Recap - September 21, 2023

Greetings, fellow financial enthusiasts! Today, let's dive into the noteworthy events that unfolded in the Indian stock market on September 21, 2023.

Market Indices: A Volatile Start

The Nifty 50 and Sensex faced a challenging start with a significant gap down. The Gift Nifty traded flat, hovering around 19,846 levels, compared to the previous close of 19,972 in Nifty futures. Weak global cues and HDFC Bank's sell-off due to brokerage downgrades contributed to the bearish market sentiment, breaking the crucial 20,000 support level during the opening hour.

HDFC Bank Share Price: Monitoring the Decline

HDFC Bank's stock price witnessed a decline of -0.64%, closing at 1563.9 per share and currently trading at 1553.95 per share. Investors are advised to closely monitor HDFC Bank's stock price in the upcoming days and weeks to gauge its response to recent developments.

Global Impact: Federal Reserve's Decision

U.S. stocks experienced mixed performance as the Federal Reserve decided to maintain key interest rates while expressing readiness to increase them further if necessary. The U.S. Treasury two-year yield reached 5.135%, the highest since 2006.

Indian Stock Market Highlights: NABARD's Social Impact Bonds and More

NABARD's Maiden Social Impact Bonds: The National Bank for Agriculture and Rural Development (NABARD) announced its plan to issue maiden social impact bonds on September 26, 2023. These bonds will finance crucial projects in areas such as agriculture, rural development, and climate change.

Swedish Central Bank's Tightened Policy: On September 21, 2023, the Swedish central bank raised its benchmark interest rate by 50 basis points, marking the sixth consecutive rate hike. This move aims to combat rising inflation, with potential further rate hikes in the coming months.

PSU Bank Stocks Soar: PSU bank stocks outperformed the broader market on September 21, 2023, with some stocks surging up to 6%. Positive sector news, including the government's announcement of a Rs 20,000 crore capital infusion into PSU banks, contributed to this bullish trend.

Market Analysis: A Closer Look

• The market's gap-down opening was intensified by HDFC Bank's sell-off post-brokerage downgrades. This pressured the index further as put writers sought to unwind their positions.

• Nifty exhibited a negative reaction from its vital 2022 hurdle, representing the 127 per cent retracement of the recent correction. Currently, this downward movement appears to be a corrective phase within an uptrend. The 20 DEMA support level, ranging from 19750-19800, becomes crucial to monitor. On the flip side, 20000-20050 stands as the intraday resistance zone based on open interest data for the weekly expiry.

• Benchmark indices corrected, primarily influenced by the sell-off in heavyweight HDFC Bank. Traders are advised to focus on stock-specific opportunities as the fate of the 20 DEMA support level remains uncertain, with the next few sessions providing more clarity.

In Conclusion

The Indian stock market on September 21, 2023, witnessed significant fluctuations driven by both domestic and global factors. Investors are urged to stay vigilant, stay informed, and make well-informed decisions.

Stay tuned for the latest market trends and financial updates!

*Disclaimer: Investment and trading in securities markets come with inherent risks. Past performance does not guarantee future results. It's crucial to be aware of the risks involved when trading or investing in equities and derivatives.*