Flat Market With Recovery In Financials, Bank And Pharma Today

Indian markets seem to have settled a bit after a series of slides for a few days. The NIFTY index has managed to hold the 38.2 per cent Fibonacci area of the 24360-400 zone as mentioned in the previous day's report. The headline index settled at 24399, down a marginal 0.15 per cent. Banks, Financial Services, Pharma and healthcare shares have seen some improvement on Thursday.

IT, Media and Metals shares witnessed marginal weakness while FMCG segment shares dropped the most with NIFTY FMCG sliding 2.83 per cent. The FMCG sector has been a defensive segment and drop lead recovery in Financials shares. The decline in the FMCG sector was attributed to delayed demand recovery and margin pressures.

In the weak set-up market, shares of UltraTech rose 2.66 per cent at 11039. India’s largest cement manufacturer, reported a 36 per cent drop in net profit for the September quarter (Q2 FY25), driven by lower revenue from operations. The PMI data released today helped the stock to see some decent recovery from recent sell-off from highs.

Despite the sell-off from FII’s, the October PMI data helped the market to stabilise today. The growth in India’s business activity picked up slightly in October after softening last month as HSBC’s flash India Composite Purchasing Managers’ Index rose to 58.6 during October from September’s final reading of 58.3, a 10-month low. A reading above 50 means expansion and below is contraction. Backed by strong sales, the manufacturing PMI index showed bigger gains to 57.4 from 56.5 in September, while services industry reading rose slightly to 57.9 this month from 57.7.

Market Outlook Index- for traders

NIFTY: The index has a strong support at 24360-400 which is 38.2 per cent retracement of the rally from the election day low to the latest ATH. If the index breaches the level lower then there is further room for declines towards the 24250-280 range. On the contrary, if the index breaks today’s high of 24478 then can expect a moderate pullback towards the 24550-560 area.

BANK NIFTY: The bank may fall further only below the 51000 mark and bring in fresh sellers to the market. The resistance for the day is the 51750-800 range and any breakout and sustained trading above the same may bring in recovery towards the 52000-52100 range.

NIFTY MIDCAP Select Index: The index formed like a tweezer bottom kind of candlestick pattern, however, needs a breakout above 12650 to confirm the same. On a breakout higher, the index may recover towards the 12700-750 range. On the contrary, if the index breaks the 12400 levels then a slide towards the 12250-280 range is imminent.

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