The Nifty continued its downward slide on Monday, extending the losses from Friday’s session. Despite opening higher, the index faced selling pressure, breaking more key support levels. The Nifty has now dropped 1,500 points from its peak of 26,277 on September 27, erasing over Rs 25 lakh crore in investor wealth.
During this period, 47 Nifty constituents have posted losses ranging from 1% to 10%. At one point in Monday’s session, the index dipped below 24,700, breaking the September swing low of 24,750.
However, a partial recovery from the day’s lows saw the index closing just below the 24,800 mark. Despite the broader market selloff, a few stocks have managed to hold on to gains during this volatile period.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.05% at 102.45.
Crude Oil
WTI crude prices are trading at $75.69 up by 1.76%, while Brent crude prices are trading at $79.34 up by 1.72%, on Monday evening.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 8,293.41 crore, while domestic institutional investors (DII) bought shares worth Rs 13,245.12 crore on October 07, 2024, according to the provisional data available on the NSE.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities said that The Nifty slipped further due to ongoing geopolitical concerns, with sentiment worsening as the index fell below the 55 EMA, indicating a bearish trend. A bearish crossover in the RSI is adding to the downward price momentum.
De also added that in the short term, the trend may remain volatile, with a predominantly bearish outlook. Overall, the market appears to be “sell on rise” as long as it stays below 25,000. On the downside, support levels are positioned at 25,700, 25,590, and 25,400.
On the technical front, VLA Ambala, Co-Founder of Stock Market Today added that the Nifty index fell below its July 2023 highs, erasing the gains of August and September. Additionally, the volatility index has surged 70%, demanding increased caution among market participants, particularly for those who have experience of less than 2 years.
Ambala also recommend using the “sell on rise strategy,” as FII selling is expected to continue in the coming weeks. The index is hovering near its key support of 24,630 and 24,470, and suggested resistance is near 24,930 and 25,040.
Bank Nifty Outlook
Commenting on the Bank Nifty Levels Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas said that Bank Nifty has been witnessing a sharp decline and is now approaching the 40 week average 49700 which is our short term target. The intraday pullback are not sustaining and are being sold into. Thus, the trend is weak and until there is a daily positive close the fall is likely to continue.
While Riyank Arora Technical Analyst at Mehta equities said that “Bank Nifty is currently seeing major support at 50,000, with major resistance at 51,500. The overall trend remains positive, and the risk-reward setup is favorable for buying opportunities.”
Arora also added that traders are advised to focus on buying on dips, particularly around the 50,300-50,400 zone, with a stop loss at 50,000 to manage risk. On the upside, a break above 51,500 could lead to further gains, making it a strong opportunity for potential upside movement.
Stocks to watch on October 08
HDFC Bank
The private sector lender has announced that its board has approved the sale of its 100% stake in HDFC Education to Vama Sundari for Rs 192 crore.
Sobha
The company has reported a sales value of Rs 11.79 billion for Q2FY25. The company also disclosed that its average price realization during the quarter stood at Rs 12,674 per square foot (SFT).
IRCON
Apex Buildsys, a contractor for IRCON International, has initiated claims amounting to Rs 38.7 crore against the company. The matter is currently under adjudication by an Arbitral Tribunal. The dispute arises from contractual obligations between the two entities.
FSN E-Commerce Ventures
The parent company of Nykaa, announced a consolidated net revenue growth in the mid-twenties for Q2FY25. The company’s beauty vertical also achieved a similar growth rate, while the fashion vertical recorded net sales value (NSV) growth in the early teens during the same period.
MOIL
The company has reported its best-ever September production figures, with the company achieving a 7% production growth during the period from April to September 2024.
Hi-Tech Pipes
The Company has initiated a Qualified Institutional Placement (QIP) to raise funds, with a floor price set at Rs 194.98 per share. The floor price reflects a 3% discount to the company’s closing price on Monday.
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