Share Market Highlights- Nifty settles above 19410, Sensex over 64950; Bank Nifty adds over 300 points

“The USDINR pair closed with a loss of Paise at Rs 83.18 Friday on disappointing US job and ISM services reports for October. RBI’s foreign exchange reserve rose from $583 billion on October 20 to $587 billion on October 27. India’s services PMI data in October trailed the forecast. Sharp decline in oil prices and improved risk appetite are positive factors for the domestic currency. The US Federal Reserve may not hike rates in December either. Japan’s services and composite PMIs data released this morning were better than expected. Similarly, Germany’s services and composite PMIs turned out to be a tad better than forecast. The pair is expected to range trade between Rs 82.80 and Ra 83.50 in the near term with a bearish tilt,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

(Source: NSE)

The share price of Divi’s Labs surged 2.63% to Rs 3,439 during the intra-day trade on Monday. The company has today posted a profit for the quarter ended September 2023 at Rs 348 crore, down 29.4% as compared to Rs 493 crore during the corresponding quarter of FY23, missing estimates. It posted revenue from operations at Rs 1,909 crore, up 2.9% compared to Rs 1,850 crore during the second quarter of FY23.

Nifty PSU Bank index dropped over 1% during the intra-day trade on Monday. Bank of Baroda led the losses, tanking 4%, while Punjab & Sind Bank and UCO Bank also fell nearly 1% each.

Eicher Motors, Hero MotoCorp, Axis Bank, L&T, and Grasim Industries are the leading gainers on the NSE Nifty 50, while the laggards include Titan, State Bank of India, Tata Motors, Cipla, and LTI Mindtree during the intra-day trade on Monday.

The stock price of the State Bank of India dropped 0.84% to Rs 573.25 during the intra-day trade on Monday. The Bank on Saturday, posted profit for the fiscal second quarter of FY24 at Rs 16,383.18 crore, up 9.1% as against Rs 15,017.18 crore during the corresponding period of last year.

(Source: NSE)

Cello World’s shares listed at 28% premium over the IPO price on bourses on Monday. The share debuted at Rs 829 on the NSE and Rs 831 on the BSE, as compared to the issue price of Rs 648. The investors have made a profit of Rs 181 per share as the scrip gave 28% returns to investors on the listing.

“Despite the premium valuation, the IPO received a positive response from investors. This is likely due to the company’s strong brand recognition, diversified product portfolio, and pan-India presence. After such a strong listing, investors may book profit; however, those who have a long-term investment horizon can keep a stop loss at Rs 750, said Shivani Nyati, Head of Wealth, Swastika Investmart.

State Bank of India, Bank of Baroda, Vedanta, NTPC, IOC, Delhivery and JSW Infrastructure are among the top stocks to watch during Monday’s trading session.

“The ability of stock markets to climb walls of worries is manifesting clearly in these troubled times. Buy on dips strategy has worked well for investors with risk-appetite. The market construct now is favourable for the bulls despite the uncertainty surrounding the Israel-Hamas conflict. The sharp decline in the US 10-year bond yield from the October high of 5% to 4.58% now is the strongest tailwind for the market. The decline in the dollar index to 105.2, correction in Brent crude to $85 and gold declining to $1988 are indications of a risk-on in markets. The short strategy of FIIs haven’t worked and they are likely to turn buyers soon. Even though the Small cap index is showing resilience, valuation comfort and safety are in large caps. Financials and automobiles are on a strong wicket. For IT, momentum is in mid-caps,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“In the USD-INR market, the 28th November futures contract has been trading in a narrow range. The pair is currently above its moving average trend-line support at 83.18, with an RSI above 50. The MACD shows positive divergence, but the pair faces strong resistance above 83.30. Support is at 83.05-82.80, and resistance is at 83.55-83.70 based on the weekly chart. If the pair can’t sustain above 83.30, it might weaken towards 83.05-82.80, with resistance at 83.55,” said Rahul Kalantri, VP Commodities, Mehta Equities.

Coal India, Eicher Motors, Apollo Hospitals, Axis Bank, and JSW Steel led the gains on the NSE Nifty 50 during the trading session on Monday.

The NSE Nifty 50 opened at 19,345.85 up 0.59%, while the BSE Sensex opened at 64,835.23 up 471.75 points.

“Nifty is expected to rise in sync with global stock markets, benefitting from several positive catalysts. These factors include market optimism that the Federal Reserve won’t raise interest rates, sluggish US job growth, and the calming effect of India’s VIX at 10.88 levels. Investors are eyeing an immediate target of Nifty at 19,369, with a more ambitious goal at 19,707. These optimistic indicators suggest a promising outlook for Nifty’s performance in the near future,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The NSE has added Gujarat Narmada Valley Fertilizers and Chemicals to its F&O ban list for November 6, 2023.

Foreign institutional investors (FII) offloaded shares worth net Rs 12.43 crore, while domestic institutional investors (DII) added shares worth net Rs 402.69 crore on November 3, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $80.98 up 0.52%, while Brent crude prices are trading at $85.20 up 0.37%, on Monday morning.

US stocks closed higher on Friday in volatile trade to snap a four-session losing streak as investors wrestled with a mixed jobs report and comments from Federal Reserve officials on the pace of interest rate hikes, reported Reuters. 

The tech-heavy Nasdaq Composite surged 132.31 points or 1.28% to 10,475.25. The S&P 500 rose 50.66 points or 1.36% to 3,770.55, while the Dow Jones Industrial Average climbed 401.97 points or 1.26% to 32,403.22.