NIFTY CLOSED WITH GAINS AFTER TWO DAYS OF DECLINE

NIFTY:

The NIFTY opened at 19521.85 with a gap up of 85 points. The index initially moved sideways which later broke on the downside and prices have started drifting downwards. Prices found support before filling up the gap and bounced up after recording its intraday low at 19487.30. A sharp rally came which took prices to its intraday high at 19576.95. The index could not move much higher and spent the second half moving inside a narrow range. Prices have finally closed at 19545.75 with a gain of 109.65 points or 0.56% up. MEDIA and IT outperformed and ended with a gain of over 1% followed by AUTO, BANK, and FINANCIAL. PHARMA, FMCG, and METAL underperformed and ended with a loss. The short-term trend is down which was sideways before. The index recovered all the losses that came yesterday. Support is visible around 19250 while resistance is visible around 19700.

BANK NIFTY:

The BANK NIFTY opened at 44181.35 with a big gap down of 188 points. The index initially moved sideways which later broke on the downside. A decline came but prices found support sooner and bounced up after recording its intraday low at 44108.30. A sharp rally came and took prices to its intraday high at 44391.85. However, prices could not move much higher and again started a consolidation process which lasted till the end. The index finally dosed at 44208.35 with a gain of 215 points. PSU BANK underperformed, saw a mild down move, and ended with a loss of 0.51%. PVT BANK outperformed, saw a mild upside move, and ended with a gain of 0.38%. Within the index, in terms of points, ICICI BANK contributed the highest on the upside while PNB contributed the least. The short-term trend is down which was sideways before. As mentioned in our previous letter, the support is visible around 44000 while the resistance is visible around 45000.

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News Updates

• The equity benchmarks snapped two-day losing streak to shut shop on a positive note on October 5 amid a recovery in global markets. A marginal pullback of US treasury yields and the dollar index also helped revive investors’ sentiment. At close, the S&P BSE Sensex was up 405.53 points or 0.62 percent at 65,631.57 and the Nifty50 was up 108.20 points or 0.56 percent at 19,544.30.

• Zomato jumped 6 percent on October 5, extending past few sessions’ rally to hit a fresh 52-week high of Rs 107.70 on NSE. The stock is seeing interest from investors as analysts see tailwinds for the food delivery platform from the cricket world cup. Foreign brokerage Jefferies expects overall restaurant consumption to rise with a likely benefit to Zomato.

• Bajaj Finance on October 5 announced Rs 10,000 crore fund raise via qualified institutions placement as well as preferential issue of shares. The NBFC plans to raise up to Rs 8,800 crore via QIP and Rs 1,200 crore via preferential allotment to promoter Bajaj Finserv.

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

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