Yesterday’s Pick
NIFTY OCT3 26000PE RS.7,500/-(10 Lot)
BANKNIFTY OCT 1 53500PE RS.13,500/-(10 Lot)
NIFTY 3 OCT 25900PE RS.10,000/-(10 Lot)
Nifty Technical View
The market continued its downward trend for another session, with the Nifty 50 plunging 368 points to 25,811. This sharp decline formed a long bearish candlestick pattern following a gap-down opening on September 30, suggesting a potential bearish reversal. As a result, the index may experience further corrections in the coming sessions. The next support level to monitor is 25,500, aligning with the 50 percent Fibonacci retracement from the recent September low to high, while resistance is seen at 26,000 on the upside.
India Vix
After breaking a four-day losing streak, volatility made a strong comeback, yet it remains at relatively low levels, which is still positive for bulls. However, if volatility rises above the 14 mark, it could raise concerns for bullish investors. The India VIX, often referred to as the fear gauge, increased by 6.9 percent to reach 12.79.
Nifty PCR
The Nifty Put-Call Ratio (PCR) fell to 0.84 on September 30, down from 1.16 the previous session, signaling a shift in market sentiment. A rising PCR above 0.7 or 1 indicates that traders are selling more Put options than Calls, suggesting bullish sentiment. Conversely, a drop below 0.7 or towards 0.5 indicates higher selling in Calls than Puts, reflecting a bearish mood.
FII And DII Data
On Monday, foreign institutional investors (FIIs) were notably active, selling off Rs 9,791.93 crore in the cash segment. In contrast, Domestic institutional investors (DIIs) were net buyers, acquiring Rs 6,645.80 crore.
Stocks to Watch
Bank of Maharashtra
The public sector lender launched its Qualified Institutions Placement (QIP) issue on September 30. The floor price has been fixed at Rs 60.37 per share. The issue size is expected to be Rs 3,500 crore, reports CNBC-TV18, quoting sources.
NTPC
Subsidiary NTPC Green Energy has signed a Memorandum of Understanding (MoU) with the Rajasthan Government for the development of 25 GW of renewable energy projects in Rajasthan.
Tata Power Company
The company has signed a Memorandum of Understanding (MoU) with the Rajasthan Government for an investment plan of Rs 1.2 lakh crore in renewable energy projects, and manufacturing, transmission, distribution, nuclear power, rooftop installations, and EV charging.
Nifty and Bank Nifty Support and Resistance level
NIFTY :-
Resistance 26,043, 26,124, and 26,254
Support based 25,783, 25,703, and 25,573
BankNifty :–
Resistance : 53,516, 53,705, and 54,010
Support based : 52,905, 52,716, and 52,411
Index Future levels
Sell Nifty Futures 25,950 The suggested targets for this are 25,750 and 25,500 with the stop loss set below 26,310.
Bank Nifty Sell Below 53,500 index is expected to downside levels of 53,200 and 53,000 and level 53,900 will act as a stop loss.
Momentum Pick: ALOK INDUSTRIES LTD
Buy above ₹ 26| Target price: ₹ 34/40 |Stop Loss:₹ 23
Alok Industries is a textile company with a presence in the cotton and polyester segments. The Company is engaged in manufacturing of textile, including mending and packing activities; leather and other apparel products.
In 2019, NCLT approved the resolution plan, and Reliance and JM Financial Asset Reconstruction (JMFARC) acquired the co. for Rs. 5000 Cr. RIL holds a 40.01% equity stake in AIL whereas JMFARC – Trust holds a 34.99% equity stake. The operations of the co. are managed and supervised by RIL through its three nominee directors appointed on the board of AIL. On Jan 24, RIL infused Rs. 3,300 Crs by way of 9% non-convertible cumulative redeemable preference shares in the Company. As of FY24, the company has a debt of Rs ~26,000 Crs and incurred an Interest cost of Rs. ~596 Crs in FY24.
Happy Trading!
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