Trade Setup for September 4: Has the Nifty 50 opened the doors for a move towards 19,600?

Nagaraj Shetti of HDFC Securities expects further upside in the short-term for the Nifty 50. He sees next hurdles for the index at 19,600 and 19,800 in the next few weeks with immediate support at 19,350.

The September futures and options (F&O) series began on a positive note for the Nifty Bank as well. It managed to claw its way back above the 44,000 mark after an entire week. Kunal Shah of LKP Securities also agrees that the next hurdle for the Nifty Bank is indeed 44,500, above which, the index can see fresh upward movement.

The overall stance of the index, according to Shah, is bullish, as long as it manages to hold on to the support levels of 44,000 - 43,800.

The Nifty Bank took support at its 100-day moving average (DMA) of 43,930 after a second straight day of gains, said Ashwin Ramani of SAMCO Securities. A close above Friday's high of 44,569 will trigger fresh upward movement in the index, according to him.

BHEL was the stock of last week. The country's largest state-owned power equipment maker saw a dizzying rally after it won a large order from NTPC, a power producer that is also owned by the Indian government.

BHEL shares closed at a seven-year high on Friday. The stock also gained 30 percent last week, which was its best weekly performance since it went public in 1991. You can read more about that here. 

The other outperformer of the week was Vodafone Idea, which gained over 10 percent on Friday and also crossed the mark of Rs 10 for the first time in nearly a year-and-a-half. The stock has now gained nearly 80 percent from its 52-week low which it made in March this year. The telecom operator also repaid Rs 1,398 crore to Franklin Templeton as part of its dues. 

Nifty 50's September futures shed 4.8 percent and 4.87 lakh shares in Open Interest. They are now trading at a premium of 76.8 points compared to 160 points earlier. On the other hand, Nifty Bank's September futures shed 8.6 percent or 2.03 lakh shares in Open Interest. Nifty 50's Put-Call Ratio is now at 1.3 from 1.19 earlier.

Indiabulls Housing Finance is back in the F&O ban list from today's session.

For this Thursday's weekly expiry, the Nifty 50 call strikes between 19,450 and 19,600 have seen addition in Open Interest. The 19,600 strike has seen the maximum Open Interest addition.

On the downside, the Nifty 50 put strikes between 19,300 and 19,400 have seen Open Interest addition, with the 19,300 strike seeing the highest Open Interest added for this Thursday's expiry.

Kotak Mahindra Bank: Uday Kotak resigned as MD and CEO with immediate effect. His term was to end on December 31. He told CNBC-TV18 in an exclusive interaction that the board has sent two names to the RBI as his potential successor. Joint MD Dipak Gupta to be interim CEO till December 31, subject to RBI approval. More details here.

Jio Financial Services: Circuit filter revised higher to 20 percent from 5 percent. The stock will also be removed from the T2T segment.

IDFC First Bank: Rajiv Jain's GQG Partners bought 2.6 percent stake in the lender via block deals on Friday.

GMR Power: Arm GMR Smart Electricity Distribution receives a Letter of Award worth Rs 5,123.4 crore from Purvanchal Vidyut Vitran Nigam.

Shilpa Medicare: The UK drug regulator has allowed the company to sell Betahistine Dihydrochloride Orodispersible Films, 24 milligram (mg). This is a drug used to treat vertigo, tinnitus, hearing loss and nausea associated with Meniere's syndrome. Shilpa Medicare is the first company to receive approval for the 24 mg strength as a film formulation in the UK.

Hero MotoCorp: Overall August sales rise 5.6 percent from last year to 4.89 lakh from 4.63 lakh units.

Reliance / ONGC / OMCs: Government ahs cut windfall tax on crude petroleum from Rs 7,100 per tonne to Rs 6,700 per tonne. Special additional excise duty (SAED) on diesel to increase to Rs 6 from Rs 5.50 per litre. SAED on ATF increased to Rs 4 from Rs 2 per litre. OMC stands for oil marketing companies like Indian Oil Corporation, Bharat Petroleoum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).

Biocon: The Bengaluru-based company has bought Eywa Pharma's oral solid dosage manufacturing facility in New Jersey for $7.7 million.

Lemon Tree Hotels: The budget hotel chain has signed a license agreement for an 80-room property in Dehradun, Uttarakhand. The hotel is expected to be operational by third quarter of the financial year ending March 2025.

IDBI Bank: The government has invited bids to appoint an agency to evaluate the bank's assets ahead of a proposed stake sale.

Maharashtra Seamless: The pipe maker has got orders worth Rs 157 crore from Oil India and Indian Oil Corporation.

Markets in the Asia-Pacific have had a mixed start to the trading day as investors look forward to key data from Australia and China later this week.

The Nikkei 225 and Topix are up 0.1 percent each, while South Korea's Kospi is up 0.2 percent. The Kosdaq is down a similar quantum. Hong Kong's markets will resume trading after a holiday on Friday due to the super Typhoon Saola.

US markets ended mixed on Friday with the Dow Jones outperforming its peers. The index ended 100 points higher to notch its best week since July.

On the other hand, the S&P 500 gained 0.2 percent, while the Nasdaq ended with minor losses. Indices ended off the day's high though, as the Dow, at one point, traded with gains of as high as 250 points.

For the week, the Nasdaq added 3.3 percent, while the S&P 500 had its best week since June, gaining 2.5 percent.

Both foreign and domestic investors were buyers in the cash market on Friday and that is courtesy of a slew of block deals in stocks like IDFC First Bank, Five Star Business Finance and others.

Rupak De of LKP Securities noted that the Nifty 50 has moved above the 21-Day Exponential Moving Average for the first time in several days as well as broken out of a falling channel. He sees an immediate resistance for the index at 19,530, above which, the index could continue its uptrend. Downside support is seen at 19,340.

"On the upside, the Nifty 50 has several hurdles during the placement of the falling trendline," said Mehul Kothari of Anand Rathi. He further said that 19,600 may act as an immediate hurdle and a close above the same can bring the bulls back in action.