A GAP DOWN OPENING IN NIFTY AND NIFTY BANK

NIFTY:

The NIFTY opened at 19654.55 with a big gap down of 140 points. Prices have recorded its intraday low at 19635.30 just below the opening tick and started moving higher. The rally was sharp but found resistance quickly and prices turned down. The decline found support around the opening tick and bounced up quickly. Prices have seen another upside rally. The NIFTY recorded its intraday high at 19805.40 and saw a sharp decline in the last hour of trading. The index finally closed at 19751.05 with a loss of 42.95 points or 0.22% down. AUTO outperformed, saw a sharp upside move, and closed with a gain of nearly 1% followed by REALTY, PHARMA, and FMCG. MEDIA underperformed and ended with a loss of 1.18% followed by BANK, IT, and METAL. The short-term trend is sideways again. Support is visible around 19500 while resistance is visible around 20000.

BANK NIFTY:

The BANK NIFTY opened at 44322.05 with a big gap down of 248 points. The index continued its early morning bearish momentum and moved further of the downside. Prices have found intraday support just above 44200 and started moving higher. The rally was very sharp and the index almost recovered but towards the end saw another down move after recording its intraday high at 44563.05. The index broke morning lows, recorded its intraday low at 44203.70, and finally closed at 44220.50 with a loss of 350 points. PSU BANK has underperformed, saw a sharp downside move, and ended with a loss of 1.39 %. PVT BANK has also moved down and closed with a loss of 0.46%. Within the index, in terms of points, INDUSIND BANK contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is sideways. A trading range is now visible on the daily timeframe chart with support around 43800 and resistance around 44800. The range has been intact for almost four weeks.

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News Updates

• Benchmark indiced ended on a negative note on OCtober 13 amid volatiliet with Nifty around 19,750. At close, the Sensex was down 125.65 points or 0.19 percent at 66,282.74, and the Nifty was down 43.00 points or 0.22 percent at 19,751. About 1800 shares advanced, 1739 shares declined, and 155 shares unchanged.

• HDFC Life Insurance on October 13 reported a net profit of Rs 376 crore in the September quarter of the financial year 2023-24, up by 15 percent from the year-ago period. The company slightly beat market estimates, which had pegged net profit at Rs 370 crore, up 14.3 percent from the year-ago quarter.

• SpiceJet surged on October 13 as ET Now reported that IndiGo’s co-founder Rakesh Gangwal was at advance stage of talks to buy a sizeable stake in the company. Gangwal and his wife Shobha Gangwal hold 13.23 percent and 2.99 percent, respectively, in IndiGo operator InterGlobe Aviation, as of June-end, while their Chinkerpoo Family Trust holds a 13.5 percent stake, according to exchange data.

• The National Company Law Appellate Tribunal (NCLAT) on October 13 refused to issue a notice in the appeals filed by Axis Finance and IDBI Bank challenging the NCLT order approving the Zee-Sony merger. The NCLAT has adjourned the case to October 31 and said ZEEL can file a response if needed.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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