India's benchmark stock index, NSE Nifty 50, is showing negative sentiments on both daily and weekly charts, according to analysts.
"Technically, on weekly charts it has formed a bearish candle; on daily charts it is holding a lower top formation, which is largely negative," said Amol Athawale, vice president of technical research at Kotak Securities.
The larger market texture is still on the weak side, according to Athawale. They stated that a fresh sell-off may only be possible after the dismissal of 24.650 and 80.800 for Nifty and Sensex, respectively.
The analyst further said Nifty and Sensex could slip till 24,500-24,450 and 80,500-80,300, respectively.
Conversely, the area around 24,900/81,500 could serve as a key resistance level for buyers, the analyst said. "If the price breaks through 24,900/81,500, we may see a continuation of the retracement trend, potentially reaching 25,000-25,050/82,000-82,200."
For Bank Nifty, Athawale said that a 50-day simple moving average would act as a key trend indicator for short-term traders in Bank Nifty. If the index stays above this level, it could rise towards the 20-day SMA or 52,500, with potential further gains pushing it up to 53,000. However, if it falls below the 50-day SMA or 52,500, the uptrend may become precarious, prompting traders to consider exiting their long positions, according to the analyst.
The slowdown in growth, along with narrowing net interest margins, indicates that banks and NBFCs may face continued correction for the next few quarters, according to Krishna Appala, senior research analyst at Capitalmind Research.
"So far, robust domestic institutional investors and systematic investment plan inflows have sustained the market's strength. However, if corporate earnings fail to match the high valuations, we may see either a price or time correction in the broader market to stabilise things," Appala said.
Market Recap
The NSE Nifty 50 and BSE Sensex snapped a three–session losing streak on Friday, tracking a rise in the shares of ICICI Bank Ltd. and Axis Bank Ltd.
The Nifty 50 ended 104.20 points or 0.42% higher at 24,854.05 and the Sensex ended 218.14 points or 0.27% higher at 81,224.75. During the day, the Nifty 50 declined as much as 0.74% to 24,567.65, and the Sensex fell 0.74% to 80,409.25.
F&O Action
The Nifty October futures were up 0.49% to 24,949 at a premium of 95 points, with the open interest down by 2.06%.
The Nifty Bank October futures were up by 1.69% to 52,310 at a premium of 216 points, while its open interest was down 13.8%.
The open interest distribution for the Nifty 50 Oct. 24 expiry series indicated most activity at 26,000 call strikes, with the 24,000 put strikes having maximum open interest.
For the Bank Nifty options expiry on Oct. 23, the maximum call open interest was at 62,000 and the maximum put open interest was at 51,500.
FII/DII Action
Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 15th consecutive session on Thursday, while domestic institutional investors stayed net buyers for the 19h straight session.
The FPIs offloaded stocks worth Rs 5,485.7 crore, according to provisional data from the National Stock Exchange. The DIIs bought stocks worth Rs 5,214.8 crore.
Money Market
The Indian rupee recorded a fresh closing low against the US dollar on Friday amid a continuous selloff in domestic stocks and is likely to remain in a tight range, according to analysts.
The domestic currency closed flat at Rs 84.0737 on Friday, according to Bloomberg data. The Indian unit closed at Rs 84.07 against the greenback on Thursday
Major Stocks In The News
Oberoi Realty: The firm reported in its earnings, an 8.4% increase in consolidated net profit for second quarter of the current fiscal , surpassing Bloomberg analysts' expectations. The net profit reached Rs 589 crore for the quarter ending Sept. 30, 2024, compared to analysts' estimates of Rs 520 crore. Revenue also rose by 8.4%, reaching Rs 1,320 crore, up from Rs 1,217 crore in the same quarter last year, also beating analyst expectations of Rs 1,292 crore. Additionally, the company saw a 27.5% increase in Ebitda, adding up to Rs 815 crore, compared to Rs 474 crore in the same quarter of the previous fiscal year, beating the analysts' Rs 730 crore estimate.
Wipro: The firm established Wipro Life Science Solutions LLC as a wholly owned subsidiary in the United States, aiming to explore new business opportunities within the life sciences sector. The subsidiary will focus on delivering post-approval pharmaceutical services, thus aiding Wipro in expanding its presence in this market. The firm also proposed a bonus share issue in the ratio of 1:1, which would mean eligible shareholders will receive one additional equity share for every fully paid-up share they hold. The record date for the bonus issue has not yet been set. The company's board of directors is scheduled to review the proposal at their upcoming meeting on Sunday.
JSW Steel: JSW Steel, in partnership with Japan's JFE Steel Corporation, has signed a share purchase agreement to acquire 100% of thyssenkrupp Electrical Steel India for Rs 4,051.4 crore. The board of JSW Steel approved the acquisition plan on Oct.18. This deal not only involves the purchase of equity shares but also includes licensing and technology transfer. By acquiring tkES India , JSW Steel aims to bolster its position in the electrical steel market and harness the advanced technological expertise that thyssenkrupp offers.
RECOMMENDED FOR YOU
Trade Setup For Oct. 18: Nifty Forms Strong Bearish Red Candle, Sees Next Support At 24,750
Oct 18, 2024
Trade Setup For Oct. 15: Analysts Peg Support For Nifty 50 Around 25,000
Oct 15, 2024
Trade Setup For Oct 10: Nifty Could Rise To 25,150-25,350 If It Holds Above 24,690
Oct 10, 2024
Trade Setup For Sept. 30: Nifty's Strong Momentum Likely Till Its Above 25,900
Sep 30, 2024
POPULAR