Power Grid, Sobha, and Trent Shine in Market Movements

Technical Overview – Nifty 50

The Benchmark Index on 08th November witnessed a mildly positive opening but prices were not able to cross convincingly above 19,450 levels and the index traded in a very narrow range for the entire day.

The Index on the daily chart cuddles around its 50 EMA levels and finds resistance near higher levels. In terms of candle stick prices have again formed a Doji pattern for the second consecutive day and remain volatile with a narrow range.

If today’s price action at Dalal Street is any indication, then the short-term technical outlook for Nifty is still in favor of the bulls. On the higher side look for a move above 19,500 levels to further upside momentum towards 19,650 levels, similarly on the lower end 19,350 – 19,300 are likely to act as immediate support for the Index.

Technical Overview – Bank Nifty

The Banking Index faced resistance near its yesterday’s high which is placed at the 43,800 level and the prices were not able to crossover above its recent high. The prices on the daily chart have formed a small bearish candle with a narrow trading range scenario.

The banking index on the daily chart has spiked upon its 9, & 21 DEMA which is a promising sign of reversal. The Banking Index on the 30 mins chart is trading in a higher high higher bottom formation and has given a triangle pattern breakout.

From a technical perspective, resuming the bullish trend with gaps is positive, but further momentum is needed to reinforce this trend. On the higher side look for a move above 44,000 levels to further upside momentum towards 44,700 levels, similarly on the lower end 43,400 – 43,250 are likely to act as immediate support for the banking Index.

Indian markets:

• Domestic equity benchmarks posted strong gains on Monday, marking the third consecutive day of increases.
• The Nifty closed above the 19,400 level, indicating a positive trend in the market.
• Metal, pharma, and oil & gas stocks were the top performers, leading the gains, while PSU banks and consumer durable stocks showed slower growth.
• Among sectoral indices, Nifty Metal index (up 1.36%), Nifty Oil & Gas index (up 1.28%), and Nifty Pharma index (up 1.28%) outperformed the Nifty50 index.
• In contrast, the FMCG index (down 0.34%), the IT index (down 0.63%), and the Media index (down 0.67%) performed below the Nifty 50 index, showing weaker performance in those sectors.

Global Markets

• European and Asian markets declined cautiously ahead of Chinese inflation data and the upcoming meeting between US President Joe Biden and Chinese President Xi Jinping. However, losses were limited due to the International Monetary Funds upgraded growth outlook for China and expectations of increased support for the property sector. On Tuesday, the IMF upgraded Chinas growth forecast to 5.4% from 5.0%.
• In the US, stocks rose as lower Treasury yields boosted megacap growth stocks, while investors awaited clarity on interest rates from Federal Reserve Chair Jerome Powell. Fed Governor Christopher Waller highlighted strong third-quarter economic growth, and the Commerce Department reported an increased trade deficit in September.
• Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.

Stocks in Spotlight

• Power Grid Corporation (PGCL) experienced a 0.46 percent decline in its shares following the company’s announcement of a 3.6 percent rise in its Q2 profit. The state-owned power transmission firm disclosed a consolidated profit of Rs 3,781.4 crore for the quarter ending September FY24, marking a 3.6 percent increase compared to the previous year.
• Sobha, the Bengaluru-based real estate company, achieved record residential sales in the September quarter, with pre-sales reaching a high of Rs1,720 crore, according to a report by Jefferies. This figure marked an increase of over 18 percent quarter-on-quarter and more than 48 percent year-on-year. Jefferies attributed Sobha’s success to the doubling of its non-Bengaluru volumes, highlighting the significant driver behind the company’s remarkable sales performance.
• Trent witnessed a 1.03 percent increase, marking its second consecutive session of gains, following the company’s impressive financial performance. In Q2 FY24, Trent reported a remarkable 189 percent year-on-year surge in consolidated net profit, reaching Rs 228 crore. This robust performance contributed to the positive momentum in the company’s stock, leading to its consecutive sessions of gains on the market.

News from the IPO world🌐

• Swiggy selects 7 investment banks as advisors for IPO
• Accent Microcell files draft papers with NSE Emerge to float public offer
• Portean eGov Technologies IPO bought 3.21 times on Day 2

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