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Nifty’s Range-Bound Riddle : Will It Fall or Soar?


Yesterday’s Pick

BANKNIFTY 16 OCT 51200 PE RS.9,750/- (10 Lot)
BANKNIFTY 16 OCT 51200 CE RS. 12,000/- (10 Lot)
NIFTY 10 OCT 25000 CE RS. 5,000/- (10 Lot)
NIFTY 25000 CE/PE SELL STRADDLE RS. 1,375/- (1 Lot)

Nifty’s Technical View

The stock market stayed within its previous day’s trading range on October 10. It ended the day slightly higher, even though global markets were mixed. The market’s volatility decreased, which helped support it. If the nifty market rises above 25,300, the next level to watch is 25,500. On the downside, 24,900 is the initial support level, followed by 24,700, which is a key support level. If the market falls below 24,700, it could signal the start of a new downward trend.

Indian Vix

The market’s volatility has been falling for the past three days. This is good news for investors who are bullish on the market. If the volatility continues to fall, it may make investors even more confident that the market will rise. The India VIX, which measures market fear, fell by 4.44% to 13.50.

Nifty PCR :

The Nifty Put-Call ratio (PCR) rose to 0.93 on October 10 from 0.72 the day before. A PCR above 0.7 or close to 1 means that traders are buying more call options than put options. This generally indicates a bullish sentiment in the market. If the PCR falls below 0.7 or approaches 0.5, it means that traders are buying more put options than call options. This indicates a bearish sentiment in the market.

FII And DII Data :

On October 10, Foreign Institutional Investors (FIIs) sold a net of Rs 4,926.61 crore in the cash segment. Domestic Institutional Investors (DIIs), on the other hand, bought a net of Rs 3,878.33 crore.

Stocks To watch

TCS:
Shares of the company will be in focus today as the IT behemoth released its Q2 results last evening. The company missed Street estimates on PAT and margins front. TCS also announced an interim dividend of ₹10 per share.

Tata Elxsi:
The engineering and technology services firm reported a 14.7% rise in its Q2 profit on Thursday, exceeding street expectations, thanks to healthy demand in its transportation wing.

IREDA:
The Indian Renewable Energy Development Agency (IREDA) on Thursday, October 10, reported a 36.18% year-on-year (YoY) rise in its net profit at ₹387.75 crore for the quarter ended September 30, 2024 (Q2 FY25). However, it was lower than the ₹410 crore that analysts tracked by Bloomberg had estimated.

Nifty and Bank Nifty Support and Resistance level

NIFTY :-
Resistance   25,100, 25,150, and 25,350
Support based  25,000, 24,850, and 24,700

BankNifty :
Resistance  :  51,650, 51,800, and 52,000
Support based : 51,100, 50,800, and 50,450

Index Future levels

Nifty Futures Sell Below 25,050 The suggested targets for this are 24,950 and 24,850 with the stop loss set below 25,200.

Bank Nifty Buy Above 51,080 index is expected to downside levels of 50,750 and 50,550 and level 51,400 will act as a stop loss.

Momentum Pick: GE Power India LTD

Buy above ₹408 | Target price: ₹ 460/500 |Stop Loss:₹ 350

GE Power India Ltd is engaged in business of engineering, procurement & construction (EPC) of key equipment for thermal and hydro power plants. It is one of the leading players in the Indian power generation equipment market. The company manufactures and provides boilers, mills, air quality control systems, automation & control, and services for steam-powered thermal plants. It is also involved in the EPC of key equipment for hydro and gas-powered plants. It is one of the leading players in the Indian power generation equipment market. 50% power flow in India is managed through GEPIL’s equipment & software.

As of Q3FY24, the order book stood at Rs. 3437 Crs. Rs. 195 crs. orders were added in Q3FY24, On April,24, General Electric Company spun off their investments of 68.58% equity stake to GE Vernova which is the new holding company, During FY22, co. acquired 50% paid-up share capital of NTPC GE Power Services for a total consideration of Rs. 7.2 crores. 

Happy Trading!

Commodity Samachar Securities
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