THE NIFTY AND NIFTY BANK MOVED DOWN FOR YET ANOTHER SESSION

NIFTY:

The NIFTY opened at 19027.25 with a gap down of 95 points. The index continued its prevailing downward move and started sliding sharply from its opening tick. Nifty Watch The Micro Picture. The decline continued till the afternoon and then prices started finding support around 18850. The index moved sideways which continued till the end. Prices have recorded its intraday high at 19041.70 in the morning, its intraday low at 18837.85 towards the end, and 18857.25 with a loss of 264.90 points or 1.39% down. All the sectoral indices have moved down and closed with a loss. The decline was almost equally distributed as each sectoral indices lost over 1% except FMCG. The long-term trend is down now while the long-term momentum has moved down from the strength zone and is heading lower. Since the trend is down we should look for shorting opportunities only as far as prices are moving below the 19000 mark. For buying opportunities, we should first wait for this decline to take a pause.

BANK NIFTY:

The BANK NIFTY opened at 42708.40 with a gap down of 140 points. The index continued its prevailing downtrend and drifted downward from its opening tick after recording its intraday high at 42716.20. Prices moved down till the afternoon, found support around 42100, and then started a consolidation process. The consolidation lasted till the end, prices recorded its intraday low at 42105.40 and finally closed at 42288.15 with a loss of 560 points. PSU and PVT BANK, both indices have performed almost the same, saw a sharp downside move, and closed with a loss of about 1%. Within the index, in terms of points AXIS BANK contributed the highest on the upside followed while HDFC BANK contributed the least. The short-term trend is down now as the index has broken down decisively its another support level of around 42500. Prices closed lower for the sixth consecutive trading day. It is possible that we may see a pause or a consolidation soon. However, we should look for shorting opportunity only as far as prices are moving below 42500 levels

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• Indian equity indices fell more than 1 percent and extended the losing streak for the sixth consecutive session on October 26. At close, the Sensex was down 900.91 points or 1.41 percent at 63,148.15, and the Nifty was down 264.90 points or 1.39 percent at 18,857.30. About 1211 shares advanced, 1943 shares declined, and 101 shares unchanged.

• Colgate Palmolive (India) Ltd, on October 26 reported a consolidated net profit of Rs 340.05 crore for the second quarter of the financial year 2023-24, up 22.31 percent from Rs 278.02 crore in the year-ago period. The company reported an 6.09 percent YoY (year-on-year) rise in consolidated revenue from operations at Rs 1,462.38 crore against Rs 1,378.37 crore a year ago.

• Asian Paints on October 26 reported a consolidated net profit of Rs 1,232.39 crore for the second quarter of the financial year 2023-24, up 53.31 percent from Rs 803.83 crore in the year-ago period. Sequentially the profit was down 21.74 percent. The paint manufacturer reported an 0.03 percent year-on-year (YoY) up in consolidated revenue at Rs 8 ,478.57 crore in the September quarter against Rs 8,457.57 crore in the year-ago period.

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

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