Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty reversed the fall seen on Aug 31 and closed higher on Sept 01. At close, Nifty was up 0.94% or 181.5 points at 19435.3. Volumes on the NSE were higher than recent average. Broad market indices rose less than the Nifty even as the advance decline ratio remained firm at 1.69:1.
Asia-Pacific markets were mostly higher as China's factory activity for August expanded and its central bank announced a cut in reserve requirements to boost the economy. European stocks were broadly higher on Friday, as investors cheered signs of more stimulus from Beijing and data showing that the downturn in euro zone manufacturing eased last month. The Eurozone manufacturing PMI increased to a three-month high of 43.50 points in August from 42.70 points in July of 2023.
India's manufacturing activity maintained its growth momentum as new orders and output increased at the quickest pace in nearly three years in August. The India Manufacturing Purchasing Managers' Index stood at 58.6 in August, the highest since May and up from 57.7 in July.
India's Goods and Services Tax (GST) revenues for August 2023 have shown a growth of 11 percent year on year.
India's eight core sectors posted a growth of 8.0 percent in July, slightly lower than the 8.2 percent recorded in June, but higher than 4.8% in July 2022.
Nifty formed a near Engulfing bull pattern on Sept 01. On weekly charts it rose 0.88% following the inverted hammer pattern formed in the previous week. It could now head towards 19584 while 19229 could offer support.
