Nifty 50 After Friday's Movement

Date: 29/10/2023, IST: 11:30:58 PM

Trade Analysis for October 30: Does the Sell-on-Rally Strategy Still Apply to Nifty 50 After Friday's Movement?

Despite the fee movement found on Friday, Nifty 50 reveals itself struggling, with a decline of over three% for the month of October and greater than 1,three hundred points removed from its peak on September 15. The market narrowly averted posting its worst weekly performance of 2023, with an insignificant 20-extraordinary factors preventing a disastrous outcome. The week concluded with the index appreciably inside the crimson, although it did control to maintain levels above the important 19,000 mark. However, the looming query remains whether or not this upward pass might be met with selling pressure on the imminent Monday.

Much hinges at the response of Reliance Industries, the heavyweight constituent of the Nifty 50, to the quarterly earnings record it unveiled on Friday. Meanwhile, international marketplace sentiment remains blended, reflecting the divergent performances on Wall Street at some stage in the Friday consultation. The Dow Jones ended the day with a 1.1% drop, at the same time as the Nasdaq managed to shut 0.Four% better, even though it retreated notably from its top in the course of the day.

Market commentator Chris Wood of Jefferies, in a current update, recommended that the marketplace is currently paying little interest to trends in the Middle East as long as there may be no signal of an imminent invasion. He mentioned that if this assessment seems to be incorrect, an invasion should have a right away unfavorable impact on oil fees, potentially reigniting worries of a wider local struggle. Nagaraj Shetti of HDFC Securities, on the other hand, anticipates the Nifty 50 to continue its upward trajectory toward the following resistance degree at 19,230, with any capacity weak point locating support around the 18,850 stage.

Rupak De of LKP Securities highlighted that the Nifty 50 has momentarily paused its downward movement due to an oversold chart setup. However, he recommended that until it manages to breach the important breakdown degree of nineteen,250, any decline is probable to be met with selling pressure. Alongside the Nifty 50, the Nifty Bank additionally controlled to halt a six-day dropping streak on Friday, though it ended underneath the 43,000 level in spite of a 500-point surge. For the Nifty Bank to keep a superb outlook for 2023, it wishes to maintain degrees above forty three,203, though it currently registers a 1% decline for the year. De from LKP anticipates potential resistance across the forty three,000 mark as call writers preserve good sized positions at that stage. On the disadvantage, he expects the Nifty Bank to discover guide at 42,500.

Ashwin Ramani of SAMCO Securities predicts the upward momentum of the Nifty Bank to persist closer to the forty three,000 degree, with a focal point on alternatives hobby across the 42,800 strike supplying insights into the index's intraday path on Monday.

Futures and Options (F&O) Market Indicators:

In the F&O section, Nifty 50's November futures have seen a decrease of 1.6% in Open Interest, and they are presently trading at a top class of eighty four.1 points, up from a hundred and fifteen.35 factors previously. In comparison, there has been no alternate in Open Interest for Nifty Bank's November futures. The Put-Call Ratio for Nifty 50 has risen to 0.96 from its preceding degree of zero.82.

No stocks are currently under the F&O ban duration.

Options Activity for Nifty 50 Expiring on November 2:

For the upcoming weekly expiry on Thursday, there has been an increase in Open Interest for Nifty 50 name strikes starting from 19,one hundred to 19,2 hundred, at the same time as Open Interest has decreased for the 19,000 and 18,900 strikes.

On the placed aspect for the same expiry date, there was an addition in Open Interest for Nifty 50 placed moves between 18,850 and 19,050.

Stocks to Watch Ahead of Monday's Trading Session:

• Reliance Industries: The enterprise mentioned sturdy consequences for the September sector, primarily pushed by strong growth in its retail commercial enterprise. Retail sales surged via 10.3% as compared to June, and the telecom business showed stability. The Average Revenue Per User (ARPU) for Jio expanded by using 2.Five% to Rs 181.7. Jio additionally witnessed more potent-than-expected subscriber additions, and the management anticipates a nationwide rollout of 5G offerings by using December 2023.

• BPCL: The organization's results exceeded estimates, way to the refining section's overall performance. However, the advertising and marketing section maintains to stand demanding situations, with a 9% sequential sales decline and a 19% drop in EBITDA. The EBITDA margin narrowed by using 60 basis factors, but the Gross Refining Margin stood at 18.Five%, surpassing the envisioned sixteen.5%.

• Dr. Reddy's Laboratories: The USFDA issued a Form 483 with 10 observations for the manufacturing unit in Bachupally, Hyderabad. The regulatory inspection took place from October 19 to 27, 2023.

• Gujarat Gas: The business enterprise introduced an growth in commercial gasoline fees by using Rs 2.3 according to trendy cubic meter, effective from November 1, 2023, elevating the price to Rs 45.6 in keeping with preferred cubic meter

• IDFC First Bank: The financial institution reported a 35.2% year-on-12 months increase in internet profit to Rs 751.3 crore, with Net Interest Income rising with the aid of 31.6% compared to the preceding 12 months to reach Rs 3,950.2 crore. The Gross NPA decreased to two.11% from 2.17% in June, and the Net NPA progressed to 0.Sixty eight% from zero.7% in June.

• CDSL: The organisation's internet profit rose by 35.6% in comparison to the preceding year, attaining Rs 109 crore. Revenue additionally multiplied by 39.2% from the preceding 12 months to Rs 207.3 crore. EBITDA registered a boom of 56%, with an EBITDA margin of 66.5%, up from fifty nine.Three%.

• Panacea Biotech: The corporation's arm launched Paclitaxel Protein-Bound particles for injectable suspension in the Canadian market. These debris are applied in the remedy of metastatic breast cancer and non-small mobile lung most cancers.

• UltraTech Cement: The company's board permitted a capital expenditure of Rs 13,000 crore to decorate ability by way of 21.9 million metric tonnes per annum.

• Bharat Electronics: The company's revenue of Rs 3,993 crore fell quick of the estimate of Rs four,611 crore. Operating income (EBITDA) stood at Rs 1,004 crore, in step with the anticipated Rs 1,020 crore. EBITDA margin outperformed the ballot  estimate, accomplishing 25.1%, thanks to higher other income and decrease fabric charges. The corporation supplied a revenue growth guidance of 17% for the economic year 2024, with an EBITDA margin variety of 21-23%.