Nifty’s Technical View
The market stayed in negative territory during a volatile trading session, with the Nifty 50 ending down 14 points at 25,797 on October 1, marking its third straight day of decline. we saw that the an negative crossover in momentum indicators, along with the pattern of lower highs and lower lows, indicates the index may continue its downward trend in the near future. If it breaks below 25,700, a further drop to 25,500 could be possible. On the other hand, if there’s a rebound, the key resistance levels to monitor will be between 25,900 and 26,000.
India Vix
Volatility experienced a notable decline after a sharp rise in the previous session, settling at lower levels, which is beneficial for bullish sentiment. The India VIX, often seen as a measure of market fear, decreased by 6.26 percent to 11.99, down from 12.79.
Nifty PCR
On October 1, the Nifty Put-Call ratio (PCR) dropped to 0.83 from 0.84, reflecting market sentiment. A rising PCR above 0.7 or exceeding 1 suggests that traders are selling more Put options than Call options, signaling bullish sentiment. Conversely, a ratio below 0.7, especially approaching 0.5, indicates higher selling of Calls compared to Puts, pointing to a bearish outlook.
FII And DII Data
On 1 OCT, Foreign institutional investors (FIIs) were notably active, selling off Rs 5,579.35 crore in the cash segment. In contrast, Domestic institutional investors (DIIs) were net buyers, acquiring Rs 4,609.55 crore.
Stocks To Watch
Adani Enterprises: Adani Group’s flagship company, Adani Enterprises, is looking to raise about $1.3 billion through qualified institutional placement (QIP) and is expected to start the process as early as the week starting October 7, Bloomberg reported, citing sources.
Paras Defence: Paras Defence and Space Technologies on Tuesday, October 1, announced the launch of its qualified institutional placement (QIP) to raise up to ₹200 crore. The company’s management committee set October 1 as the opening date of the QIP and fixed ₹1,096.35 apiece as the floor price, as per its exchange filing. The floor price is a discount of 1.68% as against the stock’s last traded price of ₹1,115.1 on the BSE.
Nifty and Bank Nifty Support and Resistance level
NIFTY :-
Resistance 25,900, 26,000 and 26,150
Support based 25,750, 25,650, and 25,500
BankNifty :–
Resistance : 53,400, 53,750, and 54,400
Support based : 52,500, 52,300, and 51,980
Index Future levels
Sell Nifty Futures Around 25,750–25,700 The suggested targets for this are 25,650 and 25,500 with the stop loss set below 26,050.
Bank Nifty Sell Below 52,800 index is expected to downside levels of 52,400 and 52,000 and level 53,650 will act as a stop loss.
Momentum Pick: STAR CEMENT LTD
Buy above ₹218 | Target price: ₹ 230/240 |Stop Loss:₹ 190
Star Cements Ltd is engaged in manufacturing and selling of Cement Clinker & Cement. It sells its products across north-eastern and eastern states in India. It is the largest cement manufacturer in North-east India, they are expertise in Ordinary portland cement (OPC), Portland Pozzolana cement(PPC), Anti-rust cement (ARC), Portland Composite Cement (PCC) and Weather Shield Cement (WSC). The company is the largest cement player in North-east India with 24% market share. Star Cement has one of the finest limestone reserves.
As of H1FY24, Co. has a network of 2,000+ dealers and 11,000+ merchants. The distribution network is spread across 10 states and 51% of the dealers are situated in North-East India. In H1FY24, company spent Rs. 16 Cr’s in branding and advertisement. In Q1FY23, trade sales (sales to distributors & dealers) accounted for 86% of revenues while non-trade sales (sales to direct customers) accounted for the remaining 14% revenues.
Happy Trading!
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