Indian Market Lagging Behind With Global Peers, More Room For Correction

The Indian market failed to see any significant recovery despite global indices such as Dow Jones and DAX posting all-time highs.

The recovery of the Indian headline index NIFTY was seen in a sluggish manner till date and posted a high of around 25200 on Tuesday morning but failed to sustain leading moderate selling towards 25050 levels.

The Bank NIFTY index witnessed a moderate gain of 0.17 per cent while the overall breadth was negative. In the index, out of 12 banks only ICICI bank and Federal Bank rose while remaining closed on a negative note. ICICI bank stock advanced after better-than-expected quarterly earnings.

The broader market NIFTY 500 saw a moderate positive breath of 280:217 while closed almost at a flat note. In the broader index, Angel One shares rose 17.88 per cent and Motilal Oswal financial services shares gained over 11 per cent.

Metals stocks dropped owing to selling in industrial metals prices post US inflation data, The NIFTY metals index declined 1.44 per cent today. The major gainer in the market was realty stocks today with the NIFTY realty index rose over 2 per cent.

Despite, geo-political developments, crude oil prices on MCX dropped below 5900 per barrel with demand concern. The decline in crude oil prices was supported by news as the US has confirmed that Israel may not attack Iran’s oil facilities and may limit to only military targets.

FII has been net seller and sold around Rs 1749 crore of equities while DII bought Rs 1655 crore. From October to date FII have sold around Rs 63,874 crore of Indian equities and DII bought Rs 61725 crore.

Corporate and Economic Development

• Indian Government shall sell a 5 per cent stake in Cochin Shipyard via offer for sale on October 16 and 17 with a floor price of Rs 1540 per share.

• Hyundai IPO only 0.2X. Retail: 0.3x, Employees: 0.8x, NIIs: 0.1x and QIBs: 0.1x Till 5 pm.

• GR Infraprojects gets a Letter of Acceptance (LoA) worth Rs 1,885.6 crore from Maharashtra State Road Development Corp.

• KEI Industries to raise upto Rs 2,000 crore via QIPs.

• PNC Infratech bags order worth Rs 4,630 crore for two projects from Maharashtra State Road Development Corporation (MSRDC).

• After 5 weeks, Samsung India workers call off strike at the plant near Chennai. CITU-backed Samsung India Workers Union to issue a statement tomorrow.

• Competition Commission of India (CCI) approves acquisition of 24.91 per cent shareholding in Future Generali India Insurance by Central bank of India.

Market Outlook Index

NIFTY: The index has failed today at the 20 day EMA around 25200 and declined towards 25010 levels. A recovery in the index is possible when it manages to see a close above 25300-320 range. On the flipside, 24930-900 range is crucial support for bulls and if the level is taken out we can see the index heading towards 24750-760 levels. Current Trend-pullback in the corrective phase and correction extension only below 24930.

BANK NIFTY: The bank has made an important support at 51650-700 levels and below that it has a trendline support at 51400-450 range. Below the trend line support, we can expect selling towards 51000 mark. Resistance is pegged at the 52000 mark as of now with next resistance at 52300 levels.

NIFTY MIDCAP Select Index: The index may have stiff resistance around 13180-200 range and failure to breach it may push it lower. The support is pegged at the 13070-80 range and the breakdown below may push it towards the 13020-13000 mark.

Also Read: Indian Equities Selloff as Caution Grows Amid Geopolitical Risks