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“Nifty On A Hot Seat: Battling Market Forces for Survival”


Yesterday’s Pick

BANKNIFTY 9 OCT 51000 PE RS.22,250/- (10Lot)
BANKNIFTY 9 OCT 51200 PE RS.6,000/- (10Lot)
NIFTY 10 OCT 25100 PE RS.5,250/- (10Lot)
LUPIN OCT 2300CE RS.5,100/- (1 Lot)
BANKNIFTY 9 OCT 51200 CE RS.18,000/- (10Lot)
NIFTY 10 OCT 25100 CE RS.3,750/- (10Lot)
SELL BANKNIFTY 9 OCT 51500 CE RS.10,500/- (10Lot)

Nifty Technical view

The market experienced selling pressure at higher levels, causing the Nifty 50 to drop slightly below the 25,000 mark and record moderate losses on October 9. While the index reversed the pattern of lower highs seen over the past six trading sessions on the daily charts, it continued to form lower tops and bottoms on the weekly charts. If the index can hold above the 25,300-25,350 range, the trend might shift in favor of buyers. Until that happens, we can expect continued consolidation, with support at 24,700.

India Vix

Volatility continued to decline for another session but remained above the 14 mark. Bulls should exercise caution while it stays above this level. The India VIX, which measures market fear, decreased by 3.19 percent, landing at 14.12.

Nifty PCR

On October 9, the Nifty Put-Call ratio (PCR), a measure of market sentiment, dropped to 0.72 from 0.74 in the previous session. A rising PCR, particularly above 0.7 or exceeding 1, suggests that traders are selling more Put options than Call options, signaling a strengthening bullish sentiment. Conversely, if the ratio falls below 0.7 or approaches 0.5, it indicates that Call selling is outpacing Put selling, reflecting a bearish outlook in the market.

FII And DII Data

On 9 October, Foreign Intuitional Investor ( FII’s ) were net sellers, selling off Rs 4,562.71crore in the cash segment. On the other hand, Domestic institutional investors (DII’s) were net buyers, acquiring Rs 3,508.61crore.

Stocks To Watch

Tata Stocks: Tata group companies are likely to be in focus following the passing of Chairman Emeritus, Ratan Naval Tata, during the night of Thursday, October 10.

Adani Enterprises: The company has launched a qualified institutional placement (QIP) at a floor price of ₹3,117 per share, aiming to raise up to ₹16,600 crore. The funds will be used to finance various projects, including airport expansions. SBI Capital Markets, Jefferies India, and ICICI Securities are the book-running lead managers for the issue.

Vedanta: As part of its liquidity management strategy, Vedanta has repaid $869 million to bondholders by redeeming bonds due in 2027 and 2028 ahead of maturity. This move is expected to reduce interest costs for the company.

Nifty and Bank Nifty Support and Resistance level

NIFTY :-
Resistance   25,150, 25,350, and 25,550
Support based  25,000, 24,850, and 24,750

BankNifty :
Resistance  :  51,500, 51,700, and 52,000
Support based : 50,900, 50,600, and 50,450

Index Future levels

Nifty Futures Buy Above 25,200 The suggested targets for this are 24,350 and 24,550 with the stop loss set below 24,850.

Bank Nifty Buy Above 51,560 index is expected to upside levels of 51,750 and 51,850 and level 51,200 will act as a stop loss.

Momentum Pick: State Bank Of India LTD

Buy above ₹800 | Target price: ₹ 825/860 |Stop Loss:₹ 760

State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history. Presently, the bank operates a network of 22,219 branches and 62617 ATMs across India. It also operates 71,968 business correspondent outlets across India. The bank has a market share of 22.84% in deposits and 19.69% share in advances in India. It has a strong customer base of ~45 crore customers

In FY 24, State Bank of India (SBI) announced a 0.89 per cent rise in the net profits at ₹17,035.16 crore for the April to June quarter of the financial year 2024-25, as compared to ₹16,884.29 crore in the same quarter the previous year as per the bank’s standalone statements

Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

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