Stock Market Holiday 2024: Banks are closed on September 16, including schools and governments in many parts of India. The reason will be the Milad-un-Nabi or Id-e Milad, an auspicious day for Muslims, celebrated in honour if birth anniversary of their Prophet Muhammad (SAW). Banks will be closed in a host of cities on Monday, however, this will not be the case for Indian stock market. But there is a catch..!
September 16:
Some regions of India are celebrating Milad-un-Nabi or Id-e Milad (Birthday of Prophet Mohammad) (bara vafat) on September 16, hence banks will be closed.
On September 16, banks in cities like Ahmedabad, Aizawl, Belapur, Bengaluru, Dehradun, Andhra Pradesh, Telangana, Imphal, Jammu, Kanpur, Kochi, Lucknow, Nagpur, New Delhi, Raipur, Ranchi, Srinagar, and Thiruvananthapuram will be closed.
Also, September 16 is also a settlement holiday. Additionally, trading in the Currency Segment will be closed on this day as well. However, other segments are open for trading including the equity market.
With the settlement holiday on September 16, how will investors be impacted? As per the Zerodha website, a settlement holiday is a day when trading is possible, but clearing and settlement are closed for Payin and Payout of stocks and funds.
Here's what will happen to transactions in the market due to the settlement holiday on September 16 as per Zerodha:
Your account balance will not include the following credits on September 16, 2024:
- Intraday profits made in the Equity segment on September 13, 2024.
- Credits from trades made in NFO, Currency, and Commodity derivatives on September 13, 2024. This will include options premium credits, futures M2M profits, etc.
- The auction market will be closed.
- Profits and credits received from trades or exiting positions in the derivatives segment (F&O and CDS) on September 13, 2024, and on September 16, 2024, will be available for withdrawal on September 17, 2024, by EOD.
Market Weekly Outlook:
Palka Arora Chopra, Director of Master Capital Services listed out that the outlook for the market will be guided by the major domestic and global economic data such as India's WPI Inflation (YoY) (Aug), India's Bank Loan Growth, India's Trade Balance (Aug), India FX Reserves (USD), US Core Retail Sales (MoM) (Aug), US Industrial Production (MoM) (Aug), US Fed Interest Rate Decision, US FOMC Economic Projections, US FOMC Press Conference, US Initial Jobless Claims, China PBoC Loan Prime Rate (Sep).
He added, "Indian equity indices, Nifty 50 and Sensex resumed their upward momentum after a brief one-week pause, reaching fresh all-time highs. The Nifty 50 surged to a record 25,433.35 before closing the week at 25,356.50, a 2% increase from the previous week's close. Similarly, the Sensex touched an all-time high of 83,116.19 before ending the week at 82,890.94, marking a 2.10% gain. Key drivers of this rally include rising expectations of a potential U.S. Federal Reserve rate cut in September, following a drop in U.S. inflation to a three-year low."
Going forward, the expert believes that Nifty continues to trade at record highs, indicating strong bullish sentiment. The next resistance level is at 25,500, with a breakout potentially targeting 25,800. On the downside, 25,100 serves as crucial support, and a breach could lead to a decline towards 24,900. Given the current market strength, adopting a "buy on dips" strategy is recommended.
He further said, Nifty Bank is currently trading near 52,000, surpassing previous resistance levels. A sustained move above 52,200 could drive the index towards 52,500. On the downside, support is established at 51,600 if this level is breached, it may decline to 51,200. The prevailing positive sentiment supports a "buy on dips" strategy.
Last week, during the trading session from September 9-13, Sensex skyrocketed by 1,712.02 points or 2.11%, while Nifty 50 surged by 603.35 points or 2.44%. The benchmarks also touched new record highs during the last week.
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