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Market Update

Nifty : 25,709.85 +124.55 (+0.49%)

Sensex : 83,952.19 +484.53 (+0.58%)

* Equity benchmark Nifty closed at a fresh 52-week high above the 25,700 mark, while Bank Nifty touched a record intra-day high of 67,750, supported by strong Q2 earnings, renewed FII buying, and attractive valuations relative to global peers. Market sentiment was further lifted by falling crude oil prices to a near one-year low below $61/bbl, continued progress on GST reforms, and October inflation easing to an eight-year low.

* Bank Nifty advanced 0.4%, driven by robust quarterly results from private sector major Axis Bank and growing expectations of an RBI rate cut later this year. Hopes of a US Fed rate cut also provided additional tailwinds.

* The Sensex gained 484 points (0.6%) to close at 83,952, while the Nifty climbed 124 points (0.6%) to end at 25,709. However, both indices retreated from their intra-day highs due to profit booking amid weakness in global equities.

* The Nifty FMCG Index rose over 1% after Nestlé India reported strong Q2 results. Stocks like Radico Khaitan, Hindustan Unilever, Dabur India, Marico, and Britannia gained up to 4%. The Pharma and Auto indices advanced 0.6% each, while defense and metal stocks slipped from their highs due to profit-taking.

* Globally, US markets ended lower overnight, and both European and Asian markets fell up to 2%, weighed down by persistent US-China trade tensions and renewed credit market concerns following loan issues at two regional US banks.

Technical Outlook:

* Nifty index opened on a negative note around the 25550 zone, but soon buying emerged as the buy-on-dips strategy continued, helping the index to inch higher. Thereafter, the index extended its move towards the 25780 zone as bulls once again showcased their dominance. It comfortably surpassed its previous swing high of 25669, a level that earlier witnessed selling pressure. Diwali firecrackers are already buzzing on Dalal Street as the index has rallied over 1000 points so far in October.

* On the daily as well as weekly chart, Nifty formed a bullish candle, while continuing its sequence of higher highs for the third consecutive week, reaffirming the prevailing positive momentum. Now it has to hold above 25600 zones for an up move towards 25850 then 26000 zones while supports have shifted higher to 25600 then 25500 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.37% at 25751 levels. Positive setup seen in Asian Paints, PG Electroplast, Laurus Lab, BDL, Bharti Airtel, Titan, Muthoot Finance, Max Healthcare, M&M and TVS Motors while weakness in Wipro, Mphasis, Infosys, IGL, Suzlon, PB Fintech, Oil India, NCC, Coforge and KPIT Tech.

* On option front, Maximum Call OI is at 26000 then 25800 strike while Maximum Put OI is at 25500 then 25700 strike. Call writing is seen at 25800 then 25900 strike while Put writing is seen at 25700 then 25600 strike. Option data suggests a broader trading range in between 25200 to 26100 zones while an immediate range between 25500 to 25900 levels.

Global Market Update

* Asian Market - Asian stocks declined, hurt by lingering worry over US-China frictions and as loan problems at two American regional banks heightened concerns about the credit market. Both Japan and Hong Kong Index declined 1.5% and 2.5% respectively.

* European Mmarket - European stocks declined on Friday as a sharp selloff in US regional lenders reverberated through global markets, amid growing bank credit concerns. UK, Germany and France Index declined up to 2%.

* US Data - Housing Starts. Exports & Imports.

* Commodity - Oil decline 2% to below $61/bbl as investors focused on oversupply and the fallout from renewed US-China trade tensions.

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