Raksha Bandhan: Is the Stock Market Open On Monday, August 19, 2024?

Raksha Bandhan, a festival that signifies the pure relation of a brother and sister, will be celebrated across India on Monday, August 19, 2024, which is the month of Sawan on Purnima Tithi. On this special occasion, banks will be closed across many regions of India. However, will the case be the same for the Indian stock market? Is trading on BSE and NSE closed or opened on Monday?

Also popularly referred to as Rakhi, this Hindu festival comes after a holiday-shortened trading week from August 12-16, due to the national holiday on the 78th Independence Day celebrated on August 16.

In the holiday-shortened week, Sensex closed with gains of 696.11 points or 0.87% from August 12-16, while Nifty 50 jumped 152.05 points or 0.62%. Currently, the Sensex is at 80,436.84, and the Nifty 50 is at 24,541.15.

So will the upcoming trading week be holiday-shortened as well due to Raksha Bandhan?

No! As per BSE and NSE data, trading in the Indian stock market is in full-swing on August 19. Hence, the market is open. Noteworthily, Independence Day is the only holiday in August month for stock market.

Investors can continue to buy or sell in equity, equity derivatives, SLB, currency, currency derivatives and commodities among others.

What to expect from the stock market in the upcoming week especially on August 19?

On last week's market performance, Shrikant Chouhan, Head of Equity Research, at Kotak Securities said, Broader domestic indices ended the week with gains. BSE Sensex, Nifty-50, BSE Midcap and BSE Smallcap indices posted weekly gains of up to 1%. On the sectoral front, the BSE IT and BSE Realty index saw healthy weekly gains. BSE Metal index declined on a weekly basis as the Supreme Court allowed states to levy tax and royalty on minerals, apart from central duties, and collect past dues. Q1FY25 results season has concluded with the

Chouhan added, "Nifty-50 Index reporting 5.2% yoy increase in the net profit. India's CPI inflation in July 2024 fell to 3.5%, from 5.1% in June 2024. In the US, the annual headline inflation in July 2024 stood at 2.9%. The market expects Fed funds rate to decline gradually in H2CY24. The market focus will now shift towards macro data, monetary policy action and geo-political events.

As per Siddhartha Khemka, Head - Retail Research, of Motilal Oswal Financial Services said, "All eyes next week will be on US Fed meeting minutes. Overall we expect the market to consolidate in a broader range and take cues from global factors."

Meanwhile, Ajit Mishra - SVP, of Research, Religare Broking said, that with the earnings season concluded, attention will now shift to global markets for cues, particularly in light of the notable recovery in U.S. markets, which has eased recession fears. Domestically, market participants will be watching institutional flows and upcoming economic data, such as the HSBC India Manufacturing PMI and HSBC India Services PMI, for direction.

Giving a fundamental view, Mishra added, that Nifty has broken out of its consolidation phase and reclaimed its short-term moving average, the 20-day EMA, buoyed by the sharp rebound in global indices. It appears poised to fill the gap around 24,700 before potentially moving towards its record high i.e. 25,078. In the event of a dip, the 24,300-24,400 zone is expected to provide immediate cushion, with major support still intact at 24,000, near the 50-day EMA. Given the selective participation in the market, the focus should remain on stock selection, with a preference for IT, FMCG, and select private banking majors, while being selective in other sectors.

In Shrey Jain Founder and CEO of SAS Online - India's Deep Discount Broker's opinion, benchmark equity indices are trading higher, buoyed by positive momentum from Wall Street, anticipation of a rate cut by the Federal Reserve in September, and strong US retail sales figures that have alleviated recession fears.

However, Jain also added, "We believe the upside potential may be limited, with Nifty unlikely to surpass the 24,500 level. On the downside, 24,100 is expected to provide immediate support. The 24,200 Call strike in Nifty has a notable open interest of around 25 lakh shares, while the 24,200 Put strike shows a significant open interest of approximately 20 lakh shares. Given the current market conditions, we anticipate Bank Nifty will encounter selling pressure at higher levels, with major resistance at 50,500. On the downside, 49,500 is expected to serve as a support level."