Share Market Highlights- Nifty settles over 19440, Sensex over 64970; Bank Nifty sheds 79 points

“WTI December at $77.39/b is down to 3 months low as demand deteriorated in October with global factory activities showing contraction across Asia, Europe, and US, while the supply had surged from OPEC+. WTI crude oil prices will test the support of $75/b, if the EIA weekly inventory shows huge build up in inventories and products, as API forecast a jump of 11 million barrels in the crude reserves. We hold bearish view on oil prices owing to surging supplies and falling demand, we expect prices to remain in range of $$74-$80 in coming sessions,” said Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas.

“The US Fed speakers, particularly Bowman and Kashkari, conveyed a hawkish stance on rates yesterday. Chinese exports data (October) disappointed, this risk-off tone also helped the US Dollar Index to close with a gain of 0.24% at Rs 205.51. Consequently, the USDINR pair at Rs 83.23 was up by 2 paise yesterday.. The 10-year US yields settled lower despite hawkish Fedspeak. Traders will be paying close attention to Powell’s speeches due in evening. Bank of England’s Governor Bailey’s speech will also be in focus. Geopolitical tensions continue to simmer due to the Middle East war; however, the war is being seen as largely contained. Overall, the USDINR pair is still seen range-bound between Rs 82.80 and Rs 83,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

BPCL, Adani Ports, Asian Paints, Cipla and Titan Company are the top gainers on the NSE Nifty 50, while the laggards include ICICI Bank, Infosys, NTPC, Tech Mahindra and Apollo Hospitals.

Alkem Laboratories’ share price climbed 4.76% to 4,219 after the company reported a 76.83% rise in consolidated net profit at Rs 614.89 crore for the second quarter of FY24 compared to Rs 347.72 crore in Q2FY23,

(Source: NSE)

The stock price of Genus Power Infrastructure gained 1.77% to Rs 256 following the news that the company’s wholly-owned subsidiary has received a letter of award (LOA) worth Rs 2259.94 crore (net of taxes) for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs) including design of Advance Metering Infrastructure (AMI) system with supply, installation and commissioning with FMS of 27.33 lakh Smart Prepaid Meters, system meters including DT Meters with corresponding energy accounting on DBFOOT basis.

HDFC Bank, ICICI Bank, Zomato, Prince Pipes and Apollo Tyres are the most active stocks on the NSE.

The dollar regained its footing on Wednesday and inched higher after a slew of Federal Reserve speakers left the door open to further rate hikes, as traders looked to a speech from Chair Jerome Powell on the central bank’s future policy path, reported Reuters. The greenback, which tumbled last week in the wake of the Fed’s decision to hold its policy rate steady and on data pointing to a cooling US labour market, has found a floor as markets remain at odds over whether a peak in US rates has been reached and how soon the Fed could begin easing monetary conditions.

(Source: NSE)

The stock price of Cummins India gained 1.48% to Rs 1,724 after the company posted its second quarter profit for the financial year 2023-24 at Rs 329.09 crore, up 23.1% in comparison to Rs 267.31 crore during the second quarter of FY23. It posted revenue from operations at Rs 1921.55 crore, down 1.7% as against Rs 1955.28 crore during the quarter ended September 2022.

The Nifty Pharma index saw a strong 1.64% surge, driven by Alkem Labs and Zydus Lifesciences, which recorded gains of 6.03% and 5.27%, respectively.

Share price of Adani Ports surged more than 1% during early trade on Wednesday following the news that the company will receive $553 million from the US for financing a port terminal in Sri Lanka, as reported by Bloomberg.

BPCL, Asian Paints, Dr Reddy’s Labs, Cipla and Adani Ports are the top gainers on the NSE Nifty 50 during the early trade on Wednesday.

“Nifty weekly contract has highest open interest at 19,500 for Calls and 19,300 for Puts while monthly contracts have highest open interest at 20,000 for Calls and 19,000 for Puts. Highest new OI addition was seen at 19,450 for Calls and 18,950 for Puts in weekly and at 19,400 for Calls and 18,950 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 3.06%, decreased future index shorts by 1.26% and increased in index options by 11.52% in Call longs, 7.31% in Call short, 13.38% in Put longs and 9.86% in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

“Crude oil prices retreated on Tuesday, dipping below $78 per barrel to reach their lowest level since July, as concerns over a broader regional conflict stemming from the Israel-Hamas war were eclipsed by weaker-than-expected economic data from China. China’s exports have declined for six consecutive months, with rising interest rates exerting downward pressure on global economic activity. A sharp decline in Chinese imports, exacerbating concerns about oil demand, fuelled a heavy sell-off in crude oil markets. Crude oil prices also fell as the dollar index rebounded ahead of the Federal Reserve Chairman’s speech. Weakness in Asian and European markets, coupled with recession fears in the Eurozone, further weighed on crude oil prices. We anticipate continued volatility in crude oil prices during today’s trading session. Crude oil finds support at $76.30-$75.50, with resistance at $78.10-$78.80. In INR terms, crude oil encounters support at Rs 6,440-Rs 6,350, while resistance lies at Rs 6,575-Rs 6,660,” said Rahul Kalantri, VP Commodities, Mehta Equities.

The NSE Nifty 50 opened at 19,449 up 0.22%, while the BSE Sensex opened at 64,101.95 up 159.55 points.

“Nifty has formed a hanging man candle on the daily chart, which is usually considered as a sign of bulls losing control. Nifty Futures Open Interest (OI) indicated buildup of fresh short positions in the segment. A healthy battle was observed between the writers at 19,400 Strike in Nifty. The index has now closed above the 50% Fibonacci retracement level of 19,344 consecutively, drawn from the high of 19,850 made on 17th October to the low of 18,838, made on 26th October. The call writers have an upper hand over 19,400 Strike in Nifty and the option activity at this strike will provide cues about Nifty’s future direction,” Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

“There are three significant trends in equity markets now: One, global markets are stable as indicated by the 7-day winning streak in Dow and S&P 500. Two, a risk on is evident in markets primarily driven by the sharp correction in the US 10-year bond yield from the recent high of 5% to 4.57% now. Three, the crash in Brent crude from around $94 to below $82 now indicates that the market doesn’t expect the Israel-Gaza conflict to aggravate into a wider regional conflict. In brief, the market construct is favourable for the continuation of the rally despite the geopolitical uncertainties. The tug of war between the FIIs and DIIs continues with sustained selling by the FIIs and sustained buying by the DIIs. Since the buy on dips strategy is working, retail investors are buying in the broader market on every dip. There is no selling pressure in the broader market since FII selling is confined to large caps. The best opportunity for long-term investors is in high quality large caps since these stocks will do well when FIIs eventually turn buyers,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.07% at 105.62.

“Nifty continued its upward trajectory, reaching 19,483 as Fitch raised India’s mid-term GDP growth forecast to 6.2%. Buoyed by Wall Street’s winning streak, Nifty appears to be the standout Diwali theme. With technical targets at 19,500 and 19,789, Nifty remains optimistic, especially as WTI crude oil prices tumble. Anticipating a dovish Federal Reserve, tech stocks are poised for outperformance. Nifty’s options data suggests a trading range of 18,900-19,700, with 19,600 as a crucial resistance point. Additionally, several companies, including Lupin and Tata Power, will release their Q2 results. A preferred trade strategy for Nifty and Bank Nifty is to buy with specific stop and target levels,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The NSE has added Gujarat Narmada Valley Fertilizers and Chemicals on its F&O ban list for November 8, 2023.

Foreign institutional investors (FII) offloaded shares worth net Rs 700.28 crore, while domestic institutional investors (DII) added shares worth net Rs 497.21 crore on November 7, 2023, according to the provisional data available on the NSE.

Oil prices fell on Wednesday to their lowest in over three months, after industry data showed a steep build in US crude supplies, while mixed Chinese economic data raised worries about global demand for crude, reported Reuters. WTI crude prices are trading at $77.01 down 0.47%, while Brent crude prices are trading at $81.38 down 0.28%, on Wednesday morning. Adding to pressure on oil prices was a modest recovery in the US dollar from recent lows, which makes oil more expensive for holders of other currencies.

US stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in US Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve, reported Reuters. The tech-heavy Nasdaq Composite gained 121.08 points or 0.90 % at 13,639.86. The S&P 500 advanced 12.40 points or 0.28 % at 4,378.38, while the Dow Jones Industrial Average added 56.94 points or 0.17% to 34,152.8.