Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty opened gap up on November 03 however couldn’t build upon the early gains. On the higher side, it tested the crucial 18000 mark where it faced selling pressure for the second consecutive day. So the index couldn’t sustain above the key hourly moving averages.
The hourly chart shows that the Nifty is facing resistance near the hourly upper Bollinger Band & the 50% retracement mark for the last couple of sessions. Thereon the index has dipped towards the hourly lower Bollinger Band, which arrested the downside for the day.
Structurally, the short term consolidation process is expected to continue further. The downside is expected to be restricted to 17600 for the short term whereas on the higher side 18000 will continue to act as a cap for the short term.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Benchmark indices witnessed profit booking because of weak global market cues and stretched valuations. Benchmark Nifty found resistance near 18000 and corrected sharply. The index has been consistently trading below 20 day SMA and on intraday charts.
It has also formed a lower top formation near 18000, which is broadly negative for the market. However, as long as it’s trading above 17750 the uptrend texture is intact.
We are of the view that 17750 would act as a key support level for the day traders, and above the same we can expect one more intraday upmove up to 17900-17975 levels.
On the flip side, trading below 17750 could possibly trigger one more round of correction wave up to 17700-17660.
Palak Kothari, Research Associate at Choice Broking:
On the technical front, the index has taken resistance from 21 DMA, which suggests some correction can be seen in upcoming days.
Moreover, the momentum indicator stochastic is witnessed with a negative crossover indicating a downtrend.
The index has settled below the Super Trend indicator indicating further weakness. Also, the index has settled below the Middle Bollinger Band. At present, the index has an immediate support of 17,700 and a resistance of 18,050 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index again showed profit booking and closed a day at 17829 with loss of nearly half percent & formed a bearish candle on the daily chart for the second consecutive candle.
Index has formed a small consolidation zone of 17,600 on the downside & 18k on the higher side until we don’t see either side breakout.
We may not see a clear direction move. Index is unable to cross its strong zone of 18k mark in last two sessions and until we don’t cross above said levels we may not see good buying comes in & profit booking can be witnessed towards immediate support zone of 17,750-17,700 zone.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities:
Nifty has entered a corrective phase and is expected to remain under pressure for the short term. Resistance is expected around 18,000-18,100 levels, while we see value around the 17,000-17,200 mark.
Advice traders to keep a check on leverage positions while investors can use deeper correction to accumulate frontline stocks. IT and metals can be accumulated on corrections.
Vinod Nair, Head of Research at Geojit Financial Services
After a sideways movement post its positive opening, the indices took a downturn as major global indices traded weak ahead of the Fed policy announcement.
The Federal Reserve is widely expected to announce the tapering of its asset purchase program in the near-term while any hint on interest rate reversal is keeping investors on the edge.
Any indications showing a faster rate of tapering will have a negative effect on the equity market. Or else, we can expect a reversal from this weak trend.
On a positive note, despite the rise in input costs, India’s Services PMI jumped to 58.4 in October from 55.2 in September owing to ongoing improvements in demand boosting the growth of sales.
Market Close: Benchmark indices finished the last day of the Samvat 2077 on negative note amid selling seen in the banking and auto names.
At close, the Sensex was down 257.14 points or 0.43% at 59,771.92, and the Nifty was down 59.80 points or 0.33% at 17,829.20. About 1509 shares have advanced, 1662 shares declined, and 143 shares are unchanged.
L&T, Grasim Industries, UPL, UltraTech Cement and Asian Paints were among the major Nifty gainers. Losers included Sun Pharma, IndusInd Bank, Bharti Airtel, Kotak Mahindra Bank and ICICI Bank.
On the sectoral front, auto and bank fell 1 percent each, while realty and capital goods indices rose 2 percent each. The BSE midcap and smallcap indices ended with marginal losses.
UFO Moviez to raise Rs 96.82 crore via preferential allotment
UFO Moviez India will raise Rs 96.82 crore by way of preferential allotment, the company said in an exchange filing on November 3.
The company said that its Board of Directors has approved the preferential allotment of 93,99,933 equity shares aggregating to Rs 96.82 crore to Nepean Focused Investment Fund at a price of Rs 103.01 per equity share.
The proceeds of this issuance will be used to meet the working capital and for corporate requirements.
UFO Moviez India touched a 52-week high of Rs 116.40 and was quoting at Rs 114.45, up Rs 5.40, or 4.95 percent.
Precision Wires approves sub-division of 1 equity share
Precision Wires India in its board meeting held on November 3 has approved the interim dividend for the financial year 2021-22 at 35% i.e. Rs 1.75 per equity share of the face value of Rs 5 each.
Board also sub-division of company’s 1 equity share of face value of Rs 5 each into 5 equity shares of face value of Re 1 each and sub-division of unissued equity shares of Rs 10 each into 10 equity shares of face value of Re 1 each, subject to the shareholders and other approvals as may be required
Precision Wires India touched a 52-week high of Rs 315.80 and was quoting at Rs 304.65, up Rs 9.10, or 3.08 percent.
Jyoti Roy – DVP- Equity Strategist, Angel One:
At the upper end of the price band, Paytm is valued at 49.7x its FY21 revenues. While valuations may appear to be expensive, Paytm has become synonymous with digital payments through mobile and is the market leader in the mobile payment space.
Patym is well positioned to benefit from the exponential 5x growth in mobile payments between FY2021 – FY2026 and hence believe that the valuations are justified. We recommend investors to subsctibe to the issue.
Tata Power assigned ‘BB’ rating to Tata Power with stable outlook
S&P Global ratings has upgraded its rating by two notches on Tata Power to BB rating with stable outlook from B+ with positive outlook.
Tata Power Company was quoting at Rs 227.40, down Rs 1.05, or 0.46 percent on the BSE.
