The NSE Nifty 50 has resumed its upward movement towards 25,500 after a short three-day consolidation, according to analysts. The markets on the daily chart formed a green candle, signalling strength.
Immediate support is identified around 25,000, with stronger support in the 24,800–24,700 range, according to Rajesh Bhosale, equity technical analyst at Angel One. He expects the 20 exponential moving average to serve as an immediate resistance around 25,300.
"On the upside, the 21-DEMA (double exponential moving average) is to be placed near 25,270, which will act as a short-term hurdle for the index, followed by 25,400. On the downside, the index is to find immediate support near 24,900," Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Intermediates Ltd., said.
"We expect the positive momentum to continue over the next few trading sessions towards 25,234-55,360. Support base shifts higher towards 24,920," said Jatin Gedia, technical research analyst at Sharekhan, a subsidiary of BNP Paribas.
Analysts recommend a buy-on-dips strategy as long as the index holds above 24,900 for some analysts and 51,817 for others. They cited easing geopolitical tensions, which had initially contributed to market weakness.
The Bank Nifty also formed a green candle, indicating strength. The Bank Nifty can test levels of 52,500–52,800 in the short term. On the downside, 51,000 will provide strong support for Bank Nifty, where the 100-DEMA is placed, according to Yedve.
"Support base shifts higher towards 51,400–51,500," Gedia said.
F&O Action
The Nifty October futures are futures up 0.75% to 25,237 at a premium of 110 points, with the open interest lower by 2.33%.
The Nifty Bank October futures up 1.36% to 52,042 at a premium of 226 points, while its open interest fell 7.7%.
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 51,000.
FII/DII Activity
Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 11th consecutive session on Monday, while domestic institutional investors bought stocks worth Rs 2,278.09 crore.
The FPIs offloaded stocks worth Rs 3,731.6 crore, according to provisional data from the National Stock Exchange.
Also Read: FPIs Remain Net Sellers For 11th Session
Market Recap
India's benchmark stock indices, Nifty and Sensex, ended at over one-week highs on Monday, tracking the sharp gains in Infosys Ltd. and HDFC Bank Ltd. Market participants await earnings from Reliance Industries Ltd. and HCL Technologies Ltd. for cues.
The NSE Nifty 50 ended 0.66% higher at 25,127.95, and the BSE Sensex closed 0.73% higher at 81,973.05. Both the indices closed at their highest levels since Oct. 3.
During the session, the Nifty 50 rose 0.78% to 25,159.75, and the Sensex rose 0.85% to 82,072.17.
Major Stocks In News
Hyundai Motor India: The company will launch its shares for bidding on Tuesday, with a price band ranging from Rs 1,865 to Rs 1,960 per share. The IPO, valued at Rs 27,870 crore, consists entirely of an offer for sale. Additionally, the company has secured Rs 8,315 crore from anchor investors. The company allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors. New World Fund Inc. has secured the highest allocation with a 9.29% stake.
Sunteck Realty: According to a provisional business update released on Monday, the firm reported a 32.7% increase in pre-sales for the July–September quarter. Total pre-sales reached Rs 524 crore for the quarter ending in September, up from Rs 502 crore in the quarter ended in June. In the first half of the current fiscal, pre-sales amounted to Rs 1,026.7 crore, marking a significant 21.3% rise compared to Rs 782 crore during the same period last year.
Reliance Industries: The company announced its second-quarter results, reporting a net profit of Rs 19,323 crore for the quarter ending September 2024, an 11% increase. This figure is in line with the consensus estimates from analysts surveyed by Bloomberg. While profit growth faced some negative pressure from declining gross refining margins in the oil-to-chemicals segment, strong performances in the retail and telecom sectors provided a positive boost.
Global Cues
Stocks in the Asia-Pacific region extended their gains on Tuesday, taking overnight cues from Wall Street's record closing as traders geared up for corporate earnings.
The Australian benchmark S&P ASX 200 was 51 points, or 0.62% higher at 8,252, while the Japanese Nikkei 225 was up 516 points, or 1.36%, at 40,141 as of 5:46 a.m.
With the corporate earnings in the US set to drive the stock market, the S&P 500 registered its 46th record high this year.
Goldman Sachs Group Inc. and Citigroup Inc. rose ahead of results on Monday while Apple Inc. gained on a bullish analyst call. Nvidia Corp. led gains in megacap stocks.
The S&P 500 firms are expected to post their weakest results in the past four quarters. However, corporate guidance implies a jump of about 16%, suggesting a strong outlook, according to Bloomberg.
The S&P 500 and Nasdaq Composite climbed 0.77% and 0.87%, respectively. The Dow Jones Industrial Average rose by 0.47%.
Key Levels
US Dollar Index at 103.2
US 10-year bond yield at 4.09%.
Brent crude down 2.63% at $75.42 per barrel.
Bitcoin was up 0.11% at $65,976.81
Gold spot was down 0.02% at $2,648.07
Money Market
The Indian rupee ended the day little changed on Monday amid likely dollar selling by the Reserve Bank of India that countered the impact of demand for the greenback from foreign portfolio investments.
The local currency appreciated 1 paisa to Rs 84.06 against the US dollar after closing at Rs 84.07 on Friday. This comes after the currency touched an all-time low of Rs 84.09 in the previous session, according to Bloomberg data.
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