Share Market Highlights- Nifty settles below 19000, Sensex below 63600; Bank Nifty sheds over 140 points

“The US Fed is most likely to hold rates in this meeting but the message from the Fed chief Powell will be hawkish since the economy is surprisingly resilient with a 4.9 % growth in Q3 GDP. The high bond yields in the US also indicate that the market expects the higher for longer rate regime to continue for some time. Since no surprise is expected from the Fed meeting outcome, the market is unlikely to be impacted. But the high bond yields will weigh on markets and FIIs can be expected to continue selling. The consequent weakness in sectors like financials where the FIIs hold a major segment of their holding will provide buying opportunities for long-term investors,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“USDINR CMP- 83.28 (spot) Indian Rupee depreciated by 3 paise today on weak domestic markets and a strong US Dollar. We expect Rupee to trade with a slight negative bias on strong Dollar amid geopolitical uncertainty in the Middle East. Weak tone in domestic markets may also weigh on Rupee. However, delayed ground invasion may support riskier currencies at lower levels. Traders may take cues from manufacturing PMI from India and ADP non-farm employment, JOLTS job opening and ISM manufacturing PMI data from US. Investors may remain cautious ahead of FOMC meeting tonight. USDINR spot price is expected to trade in a range of Rs 83 to Rs 83.60,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“We continue to remain bearish on crude oil prices as demand is expected to weaken in coming months due to higher interest rates scenario and renewed inflationary pressure. The Chinese official mfh PMI and Caixin mfg. PMI index contracted in October for the first time in three months, impacted by the weak external demand with new export orders falling for 4th straight month. The health of Chinese economy will have direct impact on the consumption of industrial commodities. Geopolitical risks remain and that seems to be offsetting some of the record production levels that are coming from the U.S. OPEC output is expected to have swelled by 180000bpd in October from Angloa and Nigeria. API forecasts crude oil inventories rose by about 1.3 million barrels last week, while fuel stockpiles fell by about 360,000 barrels, which is likely to keep crude oil prices under pressure. WTI December could rally to face resistance of $85 on renewed escalation of geo-political worries, however as the global economy looks to have weakened in Q4, expected prices to fall under the support of $80 and test next support of $78. We advise shorting the rallies,” said Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas.

The Nifty Metal index tumbled 1.01% during the intra-day trade on Wednesday. Jindal Steel led the losses with 7.03%, while Adani Enterprises and Apl Apollo Tubes tanked 3.15% and 2.34%, respectively.

(Source: NSE)

Bharat Heavy Electricals (BHEL) on Wednesday announced that Koppu Sadashiv Murthy took charge as the Chairman and Managing Director of the public sector engineering and manufacturing enterprise today.

Prior to this, Koppu Sadashiv Murthy was the Executive Director of the Corporate Operations Management group at BHEL, and also simultaneously held additional charge of Chairman and Managing Director of Bharat Pumps and Compressors (BPCL).

The Nifty Media index surged 1.09% during the intra-day trade on Wednesday. Zee Entertainment led the gains and added over 3% followed by Sun TV Network and PVR Inox.

The stock price of Mahindra & Mahindra surged 1.80% to Rs 1,485 during the intra-day trade on Wednesday after the company clocked sales of 43,708 vehicles compared to 32,298 passenger vehicles sold last October, a growth of 35% YoY.

FMCG major Adani Wilmar posted its second quarter earnings on Wednesday wherein it recorded a loss of Rs 130.73 crore in comparison to a profit of Rs 48.76 crore during the same period last year. It posted revenue from operations at Rs 12,267.15 crore, down 13.3% as against Rs 14,150.03 crore during the second quarter of FY23.

(Source: NSE)

Coal India, Asian Paints, Britannia, Maruti Suzuki India and UPL are the top losers on the NSE during the intra-day trade on Wednesday.

HDFC Bank, Larsen & Toubro, CDSL, Blue Jet Healthcare and Reliance Industries are among the most active stocks on the NSE.

The Nifty Realty index surged 1.28% during the intra-day trade on Wednesday. Swan Energy led the gains with 2.62%, while DLF, Sobha and Phoenix Mills also rallied over 2% each.

“Blue Jet Healthcare made its debut on the stock markets today, by listing at Rs 380 per share, a premium of around 10% to its IPO price of Rs 346. The IPO was subscribed 7.95 times, which is a good subscription level. Blue Jet Healthcare is a manufacturer of contrast media intermediates and high-intensity sweeteners. The company has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers. The company’s financial performance is also strong, with consistent revenue and profit growth in recent years. Overall, the listing of Blue Jet Healthcare was a success. The company’s strong fundamentals and good subscription levels were positive factors for this. Investors may hold it by keeping a stop loss at Rs 340,” said Shivani Nyati, Head of Wealth, Swastika Investmart.

(Source: NSE)

“Nifty weekly contract has highest open interest at 19,200 for Calls and 19.000 for Puts while monthly contracts have highest open interest at 20,000 for Calls and 19,000 for Puts. Highest new OI addition was seen at 19,200 for Calls and 19,100 for Puts in weekly and at 19,200 for Calls and 19,200 for Puts in monthly contracts. FIIs increased their future index long position holdings by 11.94%, increased future index shorts by 1.40% and in index options by 7.77% in Call longs, 2.69% decrease in Call short, 1.53% increase in Put longs and 16.83% decrease in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

“With the ground war in Gaza intensifying, the uncertainty surrounding the West Asian crisis is at its peak. Now we don’t know how and when this war will end and what the consequences will be. Therefore, investors should continue with a cautious strategy. It is important to understand that equity markets globally are being impacted more by the spike in US bond yields rather than the Israel-Hamas conflict. The US 10-year bond yield above 4.9% will continue to be a major headwind for stock markets, particularly for those in emerging markets. Sustained selling by FIIs is likely to continue weighing on markets. The crash in Brent crude to $85 is a big positive for India. Aviation, paints and tyre stocks will respond positively to this news. Investors may watch the trends in high quality large caps like Maruti, ICICI Bank, HDFC Bank, RIL, ITC and L&T, which have come out with good Q2 results. These companies have good earnings visibility and, therefore, will witness substantial institutional buying when normalcy returns.”

– V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The USD/INR 28th November futures contract remained within a narrow trading range. According to the daily technical chart analysis, the pair is currently trading above its moving average trend-line support level of 83.18, and the RSI is above the 50 level. While the technical setup indicates positive divergence in the MACD, the pair is currently confined within a range. In line with the daily technical chart, the pair has support at 83.20-83.05 and faces resistance at 83.45-83.60. To demonstrate further strength, the pair needs to sustain levels above 83.30, potentially targeting the 83.45-83.60 range. Otherwise, it may retest its support levels. In today’s session, we anticipate the USDINR 28th November futures contract to trade within the range of 83.05-83.60,” said Rahul Kalantri, VP Commodities, Mehta Equities.

The NSE Nifty 50 opened at 19,064.05 down marginally 0.08%, while the BSE Sensex opened at 63,829.87 down 45.06 points.

“Market conditions for Nifty and Bank Nifty are challenging, with Nifty at 19,080 and Bank Nifty at 42,846. Despite stable US bond markets and oil prices, the sentiment on Dalal Street is down. Selling Nifty at the current market price is advised, with targets at 19,000/18,827 or more aggressively at 18,605. Bank Nifty should also be sold at the current price, targeting 42,398/42,000 or a more aggressive range of 41,500-41,801. The focus remains on the FOMC outcome, expected on November 1st, where the Federal Reserve is anticipated to maintain unchanged interest rates, although a deviation in the consensus might affect future decisions. Investors are cautioned to stay on the sidelines due to uncertainty and risk stemming from significant FIIs selling in October. Technically, both Nifty and Bank Nifty exhibit a bearish landscape, while Nifty’s options data suggests a trading range of 18,500-19,500,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Bank Nifty witnessed a gap up opening however it could not sustain at higher levels and closed in the red down 190 points. The relief rally is likely to be over as the hourly momentum indicator has triggered a negative crossover from above the equilibrium line indicating that it has started a new cycle which can lead to a slide in the Bank Nifty till 42,400 and below that till 42,000,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

The NSE has added Gujarat Narmada Valley Fertilizers & Chemicals to its F&O ban list for November 1, 2023.

Foreign institutional investors (FII) offloaded shares worth net Rs 696.02 crore, while domestic institutional investors (DII) added shares worth net Rs 340.25 crore on October 31, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $81.17 up 0.19%, while Brent crude prices are trading at $87.41 down 0.05%, on Wednesday morning.

Wall Street’s main indices ended Tuesday’s session with gains as investors looked ahead to the Federal Reserve’s monetary policy update while they digested a mixed batch of earnings reports, reported Reuters. 

The tech-heavy Nasdaq Composite gained 61.76 points or 0.48% to 12,851.24. The S&P 500 added 26.98 points or 0.65% to 4,193.8, while the Dow Jones Industrial Average climbed 123.91 points or 0.38% to 33,052.87.