Share Market HIGHLIGHTS: Sensex recoups losses, ends up 143 pts, Nifty above 18100; ICICI Bank rallies 12%

Domestic equities traded in a rangebound today amid mixed global cues and high volatility with benchmark Nifty oscillating between marginal gains and losses. Barring financial and metals, most key sectoral indices witnessed continued to see profit booking. Notably, the strong September quarter performance was reported by ICICI Bank with a visible improvement in asset quality and RoA aided ICICI Bank to see a sharp uptick today. Midcap and Smallcap stocks continued to see heavier profit-booking, while the volatility index soared modestly today. ICICI Bank, Axis Bank, ONGC, and Hindalco were among top Nifty gainers, while BPCL, Bajaj Auto, SBI Life and Bajaj Finserv were laggards Binod Modi, Head Strategy at Reliance Securities

Indian markets opened lower following mixed Asian market cues as global investors track inflation and supply chain bottlenecks converge, sending eurozone inflation to a multi-year high in September raising concerns of earlier than expected rise in policy rates. during the afternoon session markets bounced from lows and traded in the green on sustained buying by funds and investors. Sentiments got some support from the industry chamber PHD Chamber of Commerce and Industry’s statement that it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum. Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

BSE Sensex again recouped all the losses and gained 100 points or 0.16 per cent to Rs 60,921, while NSE's Nifty surged above 18,100

BSE Sensex and Nifty 50 were trading nearly half a per cent higher, after recouping morning losses, on Monday. So far in the day, the 30-stock index hit a day’s high of 61,404.99, and NSE’s Nifty touched a high of 18,241.40. On Monday, Axis Bank, ICICI Bank and State Bank of India stocks hit fresh 52-week highs on the 30-stock BSE Sensex. Axis Bank scaled a fresh high of Rs 866, surpassing the previous 52-week high of Rs 827.05, touched on 19 October 2021. ICICI Bank added to the previous session’s gains and rose to a new high of Rs 859.70, and SBI jumped to Rs 515.55 apiece.

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ICICI remains our top pick, given its consistent outperformance across business/financial parameters, higher retail/digital orientation, strong capital/provision buffers, and management stability/credibility (missing in some large private peers). Retain Buy and raise the TP (Dec'22) to Rs950 (2.7x Dec'23E standalone ABV + subs value of Rs196) from Rs 825. Emkay Global Financial Services

Shibu Inu (SHIB) is a coin that aims to be an ethereum based replacement to Dogecoin, the very popular memecoin. Bitcoin is designed to be scarce whereas SHIB is intentionally made in a way that is abundant in nature. The total circulating supply of it is 1 quadrillion. The Shiba Inu token system supports innovative and artistic projects like NFT art incubators. The development of its own decentralized exchange called the ShibaSwap is also in the pipeline, all factors which have been driving the tokens value and interest among traders. Even though Doge is the oldest memecoin, and still ranks higher in terms of market capitalization, SHIB is making a place for itself currently ranking at 13 with a market capitalization of $15.5bn. The meme crypto designed on the Ethereum blockchain was trading at $ 0.00004174 and has appreciated by over 40% in the last 24 hours. The token undertook a bullish price trajectory from 15 October and noted higher highs until it reached its ATH at $0.00004450. In addition to that, the surge in volumes that the token has been witnessing can also be attributed to the FOMO that typically arises—as interest peaks, and traders rush to take part in the rally as a means to book profits. Nirmal Ranga, Chief Revenue Officer, ZebPay

Nykaa is one of the leading platforms in the beauty, personal care & fashion segments with good fundamentals. With e-commerce only set to grow rapidly in India, we recommend that investors must subscribe to this IPO but only for listing gains. This is because valuation metrics like PE ratio are extremely high even though it is one of the few profitable startups. Post-IPO, a decent correction of at least 15-20% should be used to re-enter again. Pavitraa Shetty, Co-founder & Trainer, Tips2Trades

BSE Sensex was up 261 points or 0.43 per cent to 61,082.50, while BSE Nifty gained 53 points or 0.3 per cent to 18,167

The Rs 5,352-crore Nykaa IPO which is scheduled to open for subscription on Thursday, 28 October, has fixed a price of Rs 1,085-1,125 a share. The public issue will close for subscription on 1 November 2021, according to the red herring prospectus (RHP). In the primary market, Nykaa shares were seen quoting at a premium of Rs 660 apiece, over the issue price. On Monday, the shares were seen trading at Rs 1,785 apiece, nearly 60 per cent premium, in the grey market, according to the people who deal in unlisted shares of the company.

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Nifty 50 has toppled around 3%, last week, from all-time highs which should be considered a healthy correction. In bull markets like these, a 3-5% correction is healthy for the long-term uptrend of the market. I expect the markets to be sideways in the coming few weeks with negative bias. However, Bank Nifty might perform well in the coming weeks as it has settled well above 40,000. Also, the quarterly results by leading banks look impressive which should provide good momentum to Bank Nifty. I am expecting Bank Nifty to cross the 42,000 mark before this Diwali. We have seen profit booking in selective tech stocks, auto sector and metal counters. Long-term investors should consider any such opportunity to accumulate quality mid-caps and large caps to their portfolio.

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The US Bureau of Labor Statistics has recently released the inflation data for September concerning the Consumer Price Index (CPI). The report showed that the CPI - urban (CPI-U) has gained by 0.4%, crossing the expectations. The manufacturing business outlook of Philadelphia fell a reading of 23.8 in October, down from its September reading of 30.7. The report along with festive demand in India made the gold prices highly volatile on last Friday.

Buy Zone - 47900 for the target of 48200
Sell Zone Below- 47600 for the target of 47400; Ravi Singh, Vice President & Head of Research, Share India Securities

COMEX gold trades little changed near $1795/oz after a 1.6% gain last week. Gold remains supported by weaker US dollar, retreat in bond yields, increasing inflation concerns, renewed virus concerns and mixed economic data from major economies. However, weighing on price is lack of investor buying, strength in equity markets and increasing expectations of Fed’s monetary tightening. Gold continues to struggle to sustain above the $1800/oz level which shows lack of confidence however with increasing challenges to global economy, prices may remain supported. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

The markets are struggling at the psychological level of 18000. Despite opening at above 18200, the index failed to sustain and dropped within a few minutes. If we can keep above 18000 on a closing basis, it would be a positive sign. However, if we break that level, the sentiments in the short term would get jittery and the Nifty could slide down further towards 17700-17800. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Reliance Industries, HDFC Bank, Infosys, Kotak Mahindra Bank, Asian Paints contributed the most to the indices loss

Reliance Industries Ltd (RIL) stock was down 1.7 per cent to Rs 2,582 apiece

RBI has been succeeded to keep inflation within the band until now, but the looming energy crisis and higher assumption of the oil prices (pointed in the monthly bulletin) could be worrisome for the market and so for the Rupee. Over a short-term basis, retracement in the energy prices and metal prices could support the Indian rupee, but rising US yield and unfavorable corporate results could become headwinds. Broadly, the USDINR pair is expected to remain in a range of 74.50-75.20 until major triggers take it towards 75.50-76.00 over the medium term. Amit Pabari, managing director, CR Forex Advisors

We expect gold prices to trade sideways to up in the coming week with COMEX spot gold resistance at $1833 per ounce and support at $1770 per ounce. At MCX, Gold December prices have near term resistance at Rs 48200 per 10 grams and support at Rs 47200 per 10 gram. COMEX silver spot has near term resistance at $25.20 per ounce with support at $23.50 per ounce. MCX Silver December has important resistance at Rs 67000 per KG and support at Rs 62800 per KG.

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On the sectoral front, Nifty Bank hit a record high today. Nifty Auto, Nifty FMCG, Nifty IT, Nifty Media, and Nifty Pharma were trading in the red. While, Nifty Financial Services, Nifty PSU Banks, and Nifty Private Banks were trading in the positive territory

Asian Paints, IndusInd Bank, HCL Tech, Bajaj-Auto, Kotak Mahindra Bank were trading lower

ICICI Bank, Axis Bank, Mahindra & Mahindra (M&M), NTPC, SBI were trading in the green

BSE Sensex was down 92 points or 0.15 per cent to 60,729 levels, NSE's Nifty was down 33 points or 0.18 per cent to 18,082

BSE Sensex surged 252 points or 0.42 per cent to 61,087.26 levels in the pre-opening session on Monday

Going ahead, we expect buying demand to emerge in the 18000-17800 range as we do not expect the key support threshold of 17800 to be breached. Key point to highlight during the ongoing corrective phase is that the index has been retracing recent sharp up moves as it filled the three positive gaps seen during last week. We believe such price action would make the market healthier. The ongoing sectoral churn, pricing in the Q2FY22 earnings which is a healthy sign for structural up trend, wherein Banking, capital goods and realty continued to relatively outperform. 

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Nifty futures gained marginally in the early trade, to 18,157.50 points, rising 13 points on Monday. BSE Sensex and Nifty 50 were likely to witness a cautious start on the first day of the week. Market participants will closely track the ongoing quarterly earnings, oil prices, rupee movement against US dollar, foreign fund flow, and other global cues. Moreover, benchmark indices may also witness volatility this week amid derivatives expiry. 

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In overnight trade on Wall Street, the Dow Jones industrial average registered a record closing high. The Dow Jones Industrial Average rose 73.94 points, or 0.21%, to 35,677.02, the S&P 500 lost 4.88 points, or 0.11%, to 4,544.9 and the Nasdaq Composite dropped 125.50 points, or 0.82%, to 15,090.20.

Asian shares started steady on Monday ahead of a week packed with major quarterly earnings announcements, while the dollar hovered near October lows after three weeks of risk-friendly sentiment hurt safe-haven currencies. HSBC and Facebook will both publish quarterly results on Monday, in Asian trading and late U.S. hours respectively.

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Nifty futures were trading flat at 18,146 levels, indicating a cautious start for BSE Sensex and Nifty 50 on Monday

Industry chamber PHDCCI on Sunday said it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum. Out of the 12 lead economic and business indicators of QET (Quick Economic Trends), tracked by the industry body, nine have shown an uptick in the sequential growth for the month of September 2021 as compared to six showing the uptrend in August 2021.

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