Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
USDINR closed lower at 74.96 on spot, down 12 paise. FPI flows in upcoming IPO and corporate inflows kept USD pressured. However, the pair continues to see low volatility as global cues remain mixed.
The negative impact of higher oil prices being offset by positive risk sentiments and attractive carry in Rupee. Over the past few weeks, the forward premium has hardened on decent-paying interest and suspected intervention from RBI.
Higher forward premium encourages carry trade, which is a positive factor for the Rupee. We expect a range of 74.75 and 75.20 on spot.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan:
The Nifty is witnessing a bounce from the key psychological mark of 18000. Over there, the 20 DMA & the hourly lower Bollinger Band offered support to the index. These parameters induced bulls into the action.
The hourly momentum indicator is in sync with the pullback. Hence the bounce is expected to continue further. So far it has retraced 50% of the recent fall.
Going ahead, the Nifty can stretch towards the 61.8% & 78.6% retracement i.e. 18360 & 18460 respectively. The overall structure however shows that this is only a bounce & is unlikely to be a start of a fresh rally. The short term consolidation to continue further.
Ajit Mishra, VP – Research, Religare Broking:
Markets managed to end higher in a volatile trading session, thanks to firm global cues. Upbeat earnings announcements from the US markets set the tone in the beginning however choppiness in the index majors, especially from the banking pack, in the middle kept the participants on their toes.
Consequently, the Nifty ended higher by 0.8% at 18,268 levels. Mostly sectoral indices traded in sync with the benchmark and closed in the green. The broader indices also witnessed a breather after five days of the slide and posted decent gains.
Indications are in the favour of further rebound however a lot would depend on the earnings announcements scheduled in the following sessions.
We have some prominent names like Bajaj Auto, ITC, Indusind Bank, Maruti and L&T who will announce their results on October 27.
Besides, global cues would also remain in focus. Participants should maintain a positive yet cautious approach and prefer hedged positions.
Vijay Dhanotiya, Lead Technical Research Analyst at CapitalVia Global Research
18,200 will be an important support level for the market. If the market is able to sustain the said level, we can witness a positive momentum in the market which can lead to the higher levels near 18,600.
We have observed the momentum indicators like RSI and MACD indicating positive momentum in the market.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed volatility in early trades but benchmark Nifty soon found support near 18100 and reversed sharply thereafter. The index has formed a promising reversal formation near the 20 day SMA which is broadly positive.
In addition, on intraday charts, it has formed a higher bottom formation that also supports further uptrend.
We are of the view that as long as the Nifty is trading above 18,200, the pullback rally is likely to continue up to 18,375 and on further upside the index may rise up to 18,450.
On the flip side, dismissal of 18,200 may trigger further weakness up to 18,100-18,050.
Vinod Nair, Head of Research at Geojit Financial Services:
Following a strong opening backed by positive gains in global markets, domestic indices were torn between gains and losses in today’s volatile trade.
Broad-based buying led by auto, realty, and metal stocks aided the bourses to bell the day in positive territory.
However, continuous selling by the FIIs in the market fanned investor cautiousness. Upbeat quarterly earnings outweighing inflation worries boosted the morale of global markets.
Market Close: Benchmark indices ended higher for the second consecutive day on October 26 mainly supported by auto, realty and metal stocks.
At Close, the Sensex was up 383.21 points or 0.63% at 61350.26, and the Nifty was up 143.00 points or 0.79% at 18268.40. About 2174 shares have advanced, 1007 shares declined, and 150 shares are unchanged.
Tata Motors, Tata Steel, SBI Life Insurance, Titan Company and JSW Steel were among the major Nifty gainers. Losers included IndusInd Bank, ICICI Bank, Power Grid Corp, HUL and NTPC.
All the sectoral indices ended higher with auto, realty, metal, oil & gas indices up 1-3 percent. BSE midcap and smallcap gained over 1.5 percent each.
Chip shortage to clip 400-600 bps off passenger vehicles recovery: CRISIL Ratings
The global shortage of semiconductors will moderate India’s passenger vehicle (PV) sales to 11-13% this fiscal , around 400-600 basis points (bps) lower than what could have been sans the scarcity, a CRISIL Ratings analysis of India’s top three PV original equipment makers (OEMs or vehicle makers) with a combined market share of ~71% shows.
Semiconductors, also called chips, are crucial components of vehicles that facilitate a wide array of features such as navigation, infotainment and traction control. Premium cars with advanced safety and entertainment features need more chips compared with the base models.
Rohit Poddar, Managing Director, Poddar Housing and Development:
The festive season is embellished with the skyrocketing sentiment index which turned around eminently in just 90 days. We are evidently in a much better place compared to the last quarter owing to the proactive measures taken by the government like the recent robust vaccination program leading to successful vaccination of more than 100 crore citizens. This will definitely result in achieving stability in the economic fundamentals of the country.
With the significant revival reflecting growth in both residential and commercial properties, these developments have influenced the sentiments of the fence-sitters and drove them to sales offices, thus leading to easing of pent-up demand creating a supply-side push from reforms and easing of regulations.
Bombay HC grants injunction to Zee against calling EGM in Invesco case
The Bombay High Court granted injunction against calling extra ordinary general meeting (EGM) today in the Zee Entertainment-Invesco row.
On October 22, the court reserved its order in the matter when Zee had argued that the call for an extraordinary general meeting (EGM) by its largest shareholders Invesco and OFI Global was illegal and invalid.
Zee Entertainment Enterprises was quoting at Rs 318.05, up Rs 13.60, or 4.47 percent on the BSE.
Market at 3 PM
Benchmark indices were holding on the gains in the final hour of the trading supported by the metal, auto, realty names.
The Sensex was up 262.76 points or 0.43% at 61229.81, and the Nifty was up 108.10 points or 0.60% at 18233.50. About 2071 shares have advanced, 968 shares declined, and 118 shares are unchanged.
Zee Entertainment board cancels October 27 meeting:
Zee Entertainment Enterprises share price rose 7 percent on October 26. The company has cancelled its board meeting scheduled for October 27, the media company has said in an exchange filing.
“This is to inform that a meeting of the Board of Directors of the Company, which was scheduled to be held on Wednesday, October 27, 2021, inter alia, to consider and approve the unaudited financial results of the Company both on standalone and consolidated basis for the 2nd quarter and half year ended September 30, 2021, has been cancelled due to lack of quorum,” the company said on October 25.
The company said that the next date of the meeting will be announced with a fresh notice.