Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.

Markets Today

Nifty opened with a 113-point gap down at 23,522, tracking weak global cues amid a sharp flare-up in oil prices, with Brent crude crossing the psychological $ 100-per-barrel mark. The index came under pressure immediately after the open, slipping towards 23,500, before briefly recovering towards 23,530.

Selling resumed soon after, dragging Nifty towards 23,475–23,480 around 10 AM. The index then staged a recovery towards 23,540–23,545 by 10:30 AM and remained choppy around the 23,510–23,530 zone through the rest of the first half.

In the second half, Nifty initially slipped back toward 23,480 before staging a sharp recovery after 12:30 PM that took it above 23,550 and toward an intraday high near 23,570. However, the recovery failed to sustain. After remaining around 23,540–23,550 until 2 PM, selling pressure intensified sharply in the final hour, pushing the index below 23,500 and eventually towards 23,450. Another leg of selling towards the close, followed by weakness during the closing auction session, dragged Nifty to 23,431.50, near the day’s low and around 90 points below its opening level.

Sectoral Indices Performance

Winners & Losers

Commodities

FII / DII Flows

Here’s the trend of FII-DII activity from the last 5 days:

Thematic Indices

Tijori’s niche indices, where today’s move sorts pockets of the market beyond standard sector baskets. You can also track promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard

Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 15th September:

The maximum Call Open Interest (OI) is observed at 23,700, followed by 23,800, indicating potential resistance at the 23,600- 23,700 levels.
The maximum Put Open Interest (OI) is observed at 23,000, followed by 23,500, suggesting support at 23,300-23,200.

Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.

Source: Sensibull

Management Chatter

In this section, we highlight interesting comments from management at major companies and from policymakers in the Indian and Global Economies.

Phanindranath Kakarla, MD & CEO, Asset Reconstruction Company (India) Ltd., highlighted the role ARCs have played in India’s credit ecosystem:

“The ARC industry has been an invisible but critical part of the credit cycle. This being the first ARC to list will give visibility to the whole industry. The industry has been around for 25 years, starting with Arcil itself.
Over this period, the industry has given back about ₹2.5 lakh crore to the banking and NBFC industry through recoveries, and we ourselves have given over ₹30,000 crore back to the lending industry.” - Link

Sahil Goyal, MD & CEO of Shiprocket, sees Indian e-commerce penetration as still being at an early stage, particularly outside metros. Shiprocket already derives a majority of its GMV from Tier-2 and Tier-3 cities:

“Today, India has about 8% retail penetration, which is fairly low compared with the US and China. India is at the beginning of its digitization journey, particularly in tier 2 and 3 cities, where half of India’s e-commerce today is already in tier 2-plus cities. Shiprocket has a majority of its GMV coming from tier 2 and 3 cities, so there is a lot of growth happening in that segment.” - Link

Corporate Actions & Events

Corporate Actions

Published by Zerodha. Not investment advice. Data from NSE, BSE, and MCX.

In our latest episode of In The Money by Zerodha, we trace the story of Fibonacci levels, from their origins in ancient India to their use on modern stock charts. We look at how the Fibonacci sequence was connected to Sanskrit poetry, how Leonardo of Pisa brought the numbers to Europe, and how they eventually found their way into market analysis.

We also examine whether Fibonacci levels actually work in markets, and what psychology and anchoring have to do with why traders use them. Finally, we explore why our brains are so good at finding patterns, even when those patterns may not really exist.

Check out In The Money

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Aftermarket Report by Zerodha

Oil pain deepens market sell-off; Nifty ends…