THE DOWNSIDE MOVE CONTINUED IN NIFTY, NIFTY BANK; BOTH INDICES CLOSED LOWER FOR THE FIFTH TRADING DAY; THE SHORT-TERM TREND IS DOWN, LOOK FOR SHORTING ONLY; MEDIA, IT UNDERPERFORMED TODAY

NIFTY:

The NIFTY opened at 19286.45 with a gap up of just 5 points. Initially, prices moved higher for about one hour and then took a V-shaped reversal after recording its intraday high at 19347.30. Prices have seen a sharp intraday decline and broken below 19250. The index moved further downside and recorded its intraday low at 19074.15 and then started a consolidation. That consolidation lasted till the end. Prices have seen a mild recovery and finally closed at 19122.15 with a loss of 159.60 points or 0.83% down. All the sectoral indices have moved down and closed with a loss except METAL which ended with a gain of 0.15%. MEDIA and IT led the bears as the sector ended more than 1% lower followed by BANK, FINANCIAL, and PHARMA. Fresh support is now visible around 19000 while resistance is visible around 19500. The index is moving toward the support level sharply. The last two days were very wide hence prices may trade narrow and choppy for the next couple of days.

BANK NIFTY:

The BANK NIFTY opened at 43308.30 with a gap up of 279 points. The index initially moved higher but soon started a consolidation process. Prices could not hold gains and eventually broke on the downside after recording its intraday high at 43397.45. The index has seen a sharp decline afterward which lasted till the end. Prices have recorded its intraday low at 42758.40 and finally closed at 42848.15 with a loss of 338 points. PSU BANK has outperformed, saw a mild upside rally and finally closed with a gain of 0.17%. PVT BANK has underperformed, saw a sharp downside move and closed lower by 0.99%. Within the index, in terms of points, SBIN contributed the highest on the downside followed by ICICI BANK. Support is now visible around 42500 while resistance is visible around 44000. We should look for shorting opportunity only as far as prices are moving below 44000 resistance.

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News Updates

• Indian benchmark indices ended lower for the fifth consecutive session on October 25 with Nifty around 19,100. At close, the Sensex was down 522.82 points or 0.81 percent at 64,049.06, and the Nifty was down 159.60 points or 0.83 percent at 19,122.20. About 1162 shares advanced, 2404 shares declined, and 100 shares unchanged.

• Registrar and transfer agency KFin Technologies is keen on expanding its international presence, which has a higher margin. While it is well-positioned in Malaysia, Thailand, and the Philippines, it also recently entered the Canada and Singapore markets. Looking ahead, the company is setting sights on the United States and Europe as well.

• Imported coal-based power plants have to run on 100% capacity till June. The eight-month long extension has been directed by the Ministry of Power owing to a surge in electricity demand, inadequate supply of domestic coal and reduced hydropower generation.

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

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