Share Market Highlights- Nifty settles below 19410, Sensex below 64950; Bank Nifty adds over 110 points

The share price of Jyothy Labs soared 8.18% to Rs 399.50 after the reported a 59.1% jump on consolidated net profit at Rs 103.98 crore for the second quarter ended September 30, on the back of strong revenue growth.

“The USDINR pair is currently trading with a gain of 3 Paise at Rs 83.26 as rebounding US yields supported the US Dollar Index yesterday that closed with a gain of 0.20%. Crude oil is under pressure as Israel says that it is open to tactical little pauses in the war in the Middle East. Investors will look forward to the Fedspeak as Fed’s Waller, Barr, Williams, Logan and Schmid go on air today. IMF has upgraded its China’s GDP growth forecasts for 2023 from 5% to 5.40% on post-Covid recovery, though it still expects the Chinese economy to slow down in 2024. China’s October trade balance data were mixed as exports fell short of expectations. Lower oil prices and weak US data are positive for the domestic currency; however, FIIs outflows stood at Rs 3613.87 Crore yesterday, which is bearish. The USDINR pair is expected to stick to its range-bound theme. In near term, the pair can move lower on Fed peak rate notion supported by disappointing US data,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Info Edge (India) recorded Q2 profit for the financial year 2023-24 at Rs 205.13 crore, up 99.1% in comparison to Rs 103.01 crore during the second quarter of FY23. It posted revenue from operations at Rs 625.85 crore, up 3.6% as against Rs 604.12 crore during the same period last year. The company’s EBITDA stood at Rs 205 crore for the quarter.

The stock price of FSN E-Commerce Ventures, the operator of online beauty and fashion retailer Nykaa soared over 5% to Rs 154.8 a day after the company posted a profit of Rs 7.80 crore during the second quarter of FY24, up 50.3% in comparison to Rs 5.19 crore during the corresponding quarter of last year.

“We expect the earnings of reality companies to improve going forward from here on keeping in mind the demand along with that interest rates have been stable. A large possibility of interest rates cut coming through next year depending upon the recovery on the domestic data points. Large projects getting executed and the number of registration run rates also being on the higher side can possibly last for some time going forward from here on. One of the stocks that we are positive on in the real estate sector is Godrej Properties,” said Gaurang Shah, Senior Vice President at Geojit Financial Services.

HDFC Bank, Zomato, JP Power, ICICI Bank and Hosana Consumer are the most active stocks on the NSE.

L&T Construction on Tuesday announced that its Water & Effluent Treatment (WET) business has secured repeat orders in the range of Rs 1000 crore and Rs 2500 crore from the Water Resources Department, Government of Odisha to execute Cluster XXII and Cluster XXV Mega Lift Irrigation Projects.

The Nifty Pharma index surged 1.13% during intraday trading on Tuesday. Gland Pharma led the gains and advanced nearly 5%, while IPCA Labs, Aurobindo Pharma, and Dr. Reddy’s Labs each added over 2%.

The share price of Emami dropped 0.73% to Rs 515 after the company posted a consolidated net profit for the second quarter of FY24 at Rs 178.50 crore, down 3.1% as against Rs 184.18 crore during the same period last year. It posted revenue from operations at Rs 864.87 crore, up 6.3% in comparison to Rs 813.75 crore during the second quarter of FY23.

(Source: NSE)

“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 19,300 for Puts in weekly and at 19,400 for Calls and 19,300 for Puts in monthly contracts. FIIs increased their future index long position holdings by 9.18%, decreased future index shorts by 5.42% and increase in index options by 10.31% in Call longs, 6.13% in Call short, 13.58% in Put longs and 22.89% in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

“The market construct is favourable for consolidation around current levels and gradual up move. The 6-day winning streak in S&P 500 provides global stability to markets. Stable crude, steady dollar, down trending US bond yields and declining gold are indicators of stability in markets. Investors have to appreciate the fact that the rally in small and midcaps is primarily driven by retail buying on every dip. The explosive growth in demat accounts which have touched 132 million now is playing a major role in the rally in the broader market while the large caps are under pressure from FII selling. But large caps particularly ICICI Bank, HDFC Bank, RIL, Tata Motors, Bajaj Auto, L&T and Bajaj Finance have fundamental strength reinforced by the Q2 results. FIIs turning buyers in India is only a question of time. When that happens, large caps will outperform the broader market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The NSE Nifty 50 opened at 19,404.05 down 0.03%, while the BSE Sensex opened at 65,021.29 up 62 points.

“The USD/INR 28th November futures contract exhibited weakness as it dropped below the 83.30 level. On the daily technical chart, the pair is trading below its trend-line support level of 83.25, and the MACD is indicating a negative divergence. However, the RSI remains above 50 on the daily technical chart. According to the daily technical analysis, the pair has support at 83.05-82.92 and faces resistance at 83.35-83.55. If the pair continues to trade below 83.30, it could potentially weaken further towards the support levels of 83.05-82.92, with resistance remaining at 83.55,” said Rahul Kalantri, VP Commodities, Mehta Equities.

“Nifty showed impressive resilience with three consecutive days of gains, supported by Fitch’s upgraded GDP growth forecast for India. The benchmark Nifty is rising on hopes of the Federal Reserve pausing its rate hikes. Q2 corporate results are underwhelming, but the market remains bullish, targeting 19,500 and 19,707. Options data indicates a trading range of 18,700-19,600. State elections in several regions and Q2 results from companies are in focus. Trade strategies involve buying Nifty and Bank Nifty at the current market price with specific targets,” 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 7, 2023.

Foreign institutional investors (FII) offloaded shares worth net Rs 549.37 crore, while domestic institutional investors (DII) added shares worth net Rs 595.70 crore on November 6, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $80.56 down 0.35%, while Brent crude prices are trading at $84.89 down 0.34%, on Tuesday morning.

US stocks closed slightly higher on Monday as investors awaited guidance from a host of Federal Reserve policymakers later in the week on the central bank’s policy path, with a large amount of bond supply also due to hit the market, reported Reuters. The tech-heavy Nasdaq Composite added 40.50 points or 0.30% at 13,518.78. The S&P 500 rose 7.64 points or 0.18% at 4,365.98, while the Dow Jones Industrial Average gained 34.54 points, or 0.10%, to 34,095.86.