Cello IPO booked 38.9x on final day, Bajaj Finance rallies, Mamaearth IPO subscribed 7.61 times

Technical Overview – Nifty 50

Nifty50 on 02nd November witnessed a massive gap-up opening of more than 150 points and prices sustained above 19,100 levels for a couple of hours. The prices witnessed a sharp profit booking and drifted near 19,080 levels but found immediate support near 9 EMA and continued to hover near 19,100 levels.

On the daily chart, prices witnessed resistance near its 9 EMA which is placed at 19,170 levels, it’s the second time prices have reversed from 9 EMA levels. In terms of candle stick prices have formed a Doji-like pattern after a gap-up opening.
Well, the pessimism can be attributed to relentless selling from the FIIs camp. The index continues to trade below its 9,21, and 50 DEMA which is a bearish sign for the index. The momentum oscillator RSI (14) is moving in a lower-high formation with a bearish crossover.

Technically, confirmation of strength is only above Nifty’s biggest hurdles at the 19300 mark. The support for the index is placed near 19,000 levels.

Technical Overview – Bank Nifty

The Bank Nifty on 2nd November witnessed a gap-up opening following the global peers and recorded a day high at 43,271 levels. The prices witnessed a sharp profit booking and drifted near 42,900 levels but found immediate support near 9 EMA and continued to hover near 43,000 levels.

On the daily chart, prices witnessed resistance near its 9 EMA, it’s the second time prices have reversed from 9 EMA levels. In terms of candle stick prices have formed a Doji-like pattern after a gap-up opening. The private sector banks were showing strength in the early trades and later on, lost their momentum.

Well, the pessimism can be attributed to relentless selling from the FIIs camp. The index continues to trade below its 9,21, and 50 DEMA which is a bearish sign for the index. The momentum oscillator RSI (14) is moving in a lower-high formation with a bearish crossover.

Technically, confirmation of strength is only above Bank Nifty’s biggest hurdles at the 44,000 mark. The support for the Banking index is placed near 42,500 levels.

Indian markets:

• The domestic stock market displayed a strong recovery, erasing losses from the past two sessions.
• The benchmark Nifty index rebounded, comfortably surpassing the 19,100 mark.
• Positive factors, including the US Federal Reserve’s decision to maintain steady interest rates, a decrease in US bond yields, and stabilized crude oil prices, contributed to this resurgence.
• Despite the initial surge, the market faced challenges in maintaining these high levels and saw a mild retracement of some gains.
• In a redemption move later in the session, PSU banks, metal companies, and select heavyweight stocks led the recovery, boosting the index to its closing position.
• Interestingly, mid and smallcap stocks outperformed their larger counterparts during this period.

Global Markets

• The Dow Jones index was up 125 points, indicating a strong opening in the US stocks today.
• European and Asian markets saw gains on Thursday following the U.S. Federal Reserves decision to keep interest rates unchanged. While Chair Jerome Powell hinted at the possibility of future rate hikes, his comments indicated a less firm commitment.
• In Europe, the Bank of England is expected to maintain interest rates at their current 15-year high, despite facing higher-than-targeted inflation.
• US stocks also rose in response to the Feds decision, with expectations that rates will remain steady for the remainder of the year. The Feds decision reflected positive signs of economic growth, although labor market conditions and inflation remain above the central banks target.

Stocks in Spotlight

• Bajaj Finance shares saw a 1.9 percent increase in trading after the company issued 15.5 lakh warrants to its promoter, Bajaj Finserv, at a price of Rs 7,670 each. The total consideration for this transaction amounted to Rs 1,188.85 crore. These warrants, which are convertible into equivalent equity shares with a face value of Rs 2 each, were issued at a premium of 2.65 percent compared to Bajaj Finance shares’ closing price on November 1.
• On November 2, Kansai Nerolac faced a slight dip of nearly one percent in its stock price as investors opted to book profits, following a remarkable 56 percent year-on-year increase in profit for the September quarter, totaling Rs 177 crore. Despite modest growth in revenue, which rose by 1.3 percent to Rs 1,957 crore, the company’s profit surge was attributed to robust operating performance and reduced input costs, as announced in a post-market-hours statement on the same day.
• Britannia Industries witnessed a notable increase of 2.97 percent in its stock value following the multinational FMCG company’s announcement of a 19.55 percent year-on-year rise in net profit, amounting to Rs 586.50 crore, for the quarter ending September 2023.

News from the IPO world🌐

• ESAF IPO to open on 3rd November
• Cello World IPO booked 38.9x on day 3; QIB proportion booked 109x
• Mamaearth’s IPO – 7.61 times subscribed on Final day 

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