Yesterday’s Pick
Nifty Futures RS.12,500/- (2 Lot)
BANKNIFTY 9 OCT 52500PE, RS.6,000/- (10 Lot)
NIFTY 3 OCT 25500PE, RS.11,250/- (10 Lot)
INFY 1900 PE OCT, RS.4,800/- (2 Lot)
Nifty Futures RS.11,000/- (2 Lot)
Nifty’s Technical View
The stock market fell sharply on October 3rd, with the Nifty 50 index dropping by more than 2% to 25,250. This decline was accompanied by higher-than-usual trading activity, indicating that investors were actively selling their stocks. The fall below key technical indicators suggests that the market may continue to decline in the near future. The 25,100-25,000 range is a critical support level, and if the market falls below this range, it could lead to further selling pressure. On the other hand, if the market recovers, it is likely to face resistance at the 25,400-25,500 range.
India Vix
The volatility of the stock market increased significantly on October 3rd, causing investors to become more cautious. The India VIX, which measures market volatility, rose by 9.86% to 13.17, up from 11.99 levels. This indicates that investors are becoming more concerned about the possibility of further market declines.
Nifty PCR
The Nifty Put-Call Ratio (PCR), a gauge of market sentiment, increased to 0.88 on October 3, up from 0.83 in the previous session. A rising PCR, particularly above 0.7 or nearing 1, suggests that traders are more active in selling Put options compared to Call options, which typically signals a strengthening bullish sentiment in the market. Conversely, if the ratio dips below 0.7 or approaches 0.5, it indicates that Call options are being sold more than Puts, reflecting a more bearish outlook among traders.
FII And DII Data
The stock market saw a mix of foreign and domestic investor activity on October 3rd. Foreign institutional investors (FIIs) were net sellers, selling off Rs 15,243.27 crore in the cash segment. On the other hand, Domestic institutional investors (DIIs) were net buyers, acquiring Rs 12,913.96 crore. This suggests that there was some disagreement among investors about the direction of the market.
Stocks To Watch
DMart: DMart reported 14% growth in its standalone revenues at Rs 14,050 crore for the second quarter and added a net of 6 stores.
HDFC Bank: Morgan Stanley and Citigroup have acquired 43.75 lakh shares of HDFC Bank for over Rs 755 crore at an average price of Rs 1,726.20 each. This transaction involved shares sold by BNP Paribas’ arm, BNP Paribas Financial Markets through two separate block deals at the same price on the BSE.
Piramal Enterprises: Piramal Capital and Housing Finance aims to nearly double its retail assets under management (AUM) from Rs 50,530 crore to Rs 1 trillion within three years. Hence, it is expanding into new lending segments like gold loans, microfinance, and co-branded cards. The company plans to reduce its legacy wholesale AUM from Rs 13,000 crore to below Rs 7,000 crore by FY25.
Nifty and Bank Nifty Support and Resistance level
NIFTY :-
Resistance 25,550, 25,650, and 25,800
Support based 25,200, 25,100, and 24,900
BankNifty :–
Resistance : 53,400, 53,600, and 54,000
Support based : 51,700, 51,500, and 51,100
Index Future levels
Sell Nifty Futures Below 25,300 The suggested targets for this are 25,000 and 24,800 with the stop loss set Above 25,850.
Bank Nifty Sell Below 52,180 index is expected to downside levels of 52,000 and 51,800 and level 53,450 will act as a stop loss.
Momentum Pick: THE RAMCO CEMENT LTD
Buy above ₹886 | Target price: ₹ 920/940 |Stop Loss:₹ 840
Ramco Cements Ltd is engaged in manufacture of cement, Ready Mix Concrete (RMC) and Dry mortar products. It primarily caters to the domestic market of India. The company produces 12 types of cement for different uses. It also manufactures and sells dry mix products and ready mix concrete (RMC). The company has a strong presence across South and East India with its brand ‘Ramco Supergrade’ being one of the most popular cement brands in South India.
The company is focusing on moving up the value chain and manufacturing value-added products for better realizations. Share of premium products in 2QFY24 was 30% vs 2QFY23 at 28%.
Happy Trading!
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