The Nifty 50 index has been trading in a sideways range for the last six consecutive sessions. The charts indicate that the index will continue to trade in a sideways to bearish trend.
"Price action suggests that the index may remain in a sideways to bearish trend," said Mandar Bhojane, technical analyst, Choice Broking. He expects the support levels to be at 24,000-24,500 with resistance at 24,500-25,400 levels.
The markets on the daily chart formed a small red candle with non-directional activity on the intraday chart, indicating further indecisiveness. The 50 DEMA, which is placed at 25,050-25,080, has been a significant barrier in the short term, according to Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One Ltd. A breakthrough above these levels could be instrumental in accelerating the bullish momentum towards higher levels, Krishan added.
Bank Nifty also remained under pressure through Thursday, forming a red candle. However, on a weekly basis, the index has formed a hammer candle, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
If the index stays above 51,785, which is the high of the hammer candle, then Bank Nifty could test levels of 52,500-52,800.
F&O Action
The Nifty October futures were down 0.28% to 25,049 at a premium of 85 points, with the open interest down by 1.4%.
The Nifty Bank October futures were down by 0.75% to 51,386 at a premium of 214 points, while its open interest was up by 1.3%.
The open interest distribution for the Nifty 50 Oct. 17 expiry series indicated most activity at 26,000 call strikes, with 25,000 put strikes having maximum open interest.
For the Bank Nifty options expiry on Oct. 16, the maximum call open interest was at 54,000 and the maximum put open interest was at 48,000.
FII/DII Activity
Overseas investors, commonly known as foreign portfolio investors, or FPIs, remained net sellers of Indian equities for ten consecutive sessions on Friday, while domestic institutional investors bought stocks worth Rs 3,730.87 crore.
According to provisional data from the National Stock Exchange, FPIs offloaded stocks worth Rs 4,162.66 crore.
Also Read: FPIs Remain Net Sellers For Tenth Session
Market Recap
India's benchmark equity indices closed lower for a second consecutive week on Friday, with Titan Co. and Tata Steel Ltd. emerging as the top losers on a weekly basis. On Friday, indices ended lower, weighed by losses in banks and Tata Consultancy Services Ltd.
On Friday, Nifty ended 0.10%, or 24.15 points, down at 24974.3, and Sensex closed 0.22%, or 176.01 points, lower at 81435.40.
On a weekly basis, Nifty ended 0.2% lower and Sensex closed 0.4% down. Nifty Pharma gained the most this week, and Nifty FMCG was the top loser.
Major Stocks In News
Sula: The winemaker reported its highest ever 'Own Brands' revenue in the second quarter of fiscal 2025. It generated Rs 12.2 crore in revenue from wine tourism for the second quarter of fiscal 2025, as compared with Rs 12.1 crore over the same period last year. Net revenue was at Rs 141.8 crore for the quarter ended September, as against Rs 143.7 crore for the same period last year.
PNC Infratech: The company won an order worth Rs 2,039.61 crore for a road project from City and Industrial Development Corp. of Maharashtra Ltd. The project includes development for roads of 20 meters and wider along with construction of flyovers, small bridges, underpasses, and associated electrical work like street lighting.
Ashoka Buildcon: The company has won two major projects aggregating Rs 2,591 crore in Maharashtra. The first project worth Rs 1,673 crore was won by its joint venture arm, Ashoka JV, from the City & Industrial Development Corporation of Maharashtra Ltd. The second project was won by the construction company after it emerged as the lowest bidder for a Brihanmumbai Municipal Corporation project worth Rs 918 crore.
Global Cues
Asian stocks edged higher in what will be a cautious session as investors were disappointed by China's policy briefing, while deflationary woes in the country worsened.
The Australian benchmark S&P ASX 200 was 21 points, or 0.25% higher at 8,234, while South Korea's Kospi was up 18 points or 0.66% at 2,615 as of 5:38 a.m. China’s yuan weakened against the US Dollar in early trading while Australian and New Zealand dollars also slipped.
The highly anticipated policy briefing headed by Finance Minister Lan Fo’an promised additional support for the property sector and signalled greater government borrowing. However, the policymakers refrained from issuing a price tag for the stimulus that investors were keenly expecting.
Meanwhile, deflationary problems in the South Asian country worsened as consumers grew more cautious about spending. The consumer price index climbed 0.4% from last year while the core CPI rose 0.1% in September, the lowest since February 2021.
Producer inflation saw a decline for the 24th straight month to 2.8%, more than analysts expected, according to the data from National Bureau of Statistics on Sunday.
Elsewhere, the benchmarks in the US continued its record highs as banking stocks surged after a positive start to the earings season. The S&P 500 and Nasdaq Composite climbed 0.61% and 0.33%, respectively. The Dow Jones Industrial Average rose by 0.97%.
Key Levels
US Dollar Index at 103.03
US 10-year bond yield at 4.10%.
Brent crude down 1.44% at $77.90 per barrel.
Bitcoin was down 0.41% at $62,485.34
Gold spot was down 0.36% at $2,647.05
Money Market
The rupee closed weaker against the US dollar on Friday, surpassing the psychological barrier of the 84 mark, as consistent selling of stocks on Dalal Street by global funds weighed on the Indian currency.
The domestic currency closed at a record low of 84.07 after hitting an all-time low at Rs 84.09 intraday, according to Bloomberg. The domestic current had closed at 83.98 against the greenback on Thursday.
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