HDFC Bank’s Surge, Paytm’s Potential, Skipper Limited’s Deal Wins

Technical Overview – Nifty 50

The Benchmark index on 16th October witnessed a flat opening near 19,700 levels traded within the very narrow range throughout the day and defended 19,700 levels towards the closing. The prices traded above the cluster of 9 & 21 EMA for the maximum time and closed above the same.

The candle stick pattern formed on the daily chart can be called a spinning top pattern which indicates a sideways trading range for the day. The momentum oscillator RSI (14) has bounced from the lower levels after witnessing a breakout from an inverted head & shoulder pattern and presently sustaining above 50 levels with a bullish crossover.

The Nifty is likely to be influenced by global cues, trading between 19,550 and 19,850 levels, with the potential for significant movement beyond these levels.

Technical Overview – Bank Nifty

The Banking index on 16th October witnessed a negative opening near 44,100 levels post that gained some momentum on the higher side but again capped near its 21 EMA which is placed at 44,300 levels and closed near 44,200 levels with minor loss.

In the last few trading sessions, the Banking index has formed multiple Doji and spinning top candle stick patterns which clearly indicates the volatility and lack of clarity among the traders. 

The momentum oscillator RSI (14) has again formed as a rounding top formation near 50 levels and shifted lower near the 45 mark. From the last few sessions, the Banking index has been facing strong and consistent resistance near its 50 EMA. 
Keep an eye on the major hurdle at 44,600 according to my proprietary moving average theory. Additionally, the previous high of 44,800 could add a layer of resistance for the bulls. On the flip side, 43,800 is expected to act as a reliable support zone.

Indian markets:

• Benchmark indices registered minor losses for the third consecutive session. Nifty settled below the 19,750 mark.
• The day began with a decline due to mixed global cues but later saw recovery. Throughout the session, the market remained range-bound.
• Banking, realty, and IT stocks experienced profit-taking. In contrast, there was buying activity in metal, auto, and consumer durable stocks.
• Investors showed caution due to uncertain global factors such as the Israel-Palestine conflict, weak overseas fundamentals, and continuous selling by foreign institutional investors

Global Markets

• Shares in Europe and Asia stocks traded lower as investors look ahead to key economic data from China and Japan this week. Most notably, China will release its third-quarter gross domestic product numbers on Wednesday. Japans September inflation data is expected on Friday. South Koreas central bank will also announce its rate decision on Thursday.
• US stocks ended the day mixed on Friday, pressured by a spike in oil prices and rising inflation expectations. Deteriorating consumer sentiment data and the Middle East conflict soured investors on riskier bets and overshadowed upbeat quarterly earnings from some of the largest U.S. banks.

Stocks in Spotlight

• In its first report since merging with Housing Development Finance Corp (HDFC), HDFC Bank announced a robust net profit of Rs 15,976.11 crore for the July-September quarter, marking a significant increase of just over 50 percent compared to the previous year. On a sequential basis, the net profit also rose by 33.7 percent, surpassing the estimates of brokerage firms. The bank’s strong performance was attributed to improvements in net interest income and net revenue, reflecting its solid financial position.
• Paytm’s parent company, One 97 Communications Ltd, rose by 1% following an increase in the stock’s target price by Goldman Sachs. The renowned payments company, led by Vijay Shekhar Sharma, is considered potentially the most profitable among India’s internet firms. Goldman Sachs analysts highlighted Paytm’s strong position in India’s digital payment sector, emphasizing its leading scale and engagement. The foreign brokerage anticipates Paytm to achieve net income positivity in FY25, a development expected to positively impact the company’s stock.
• Skipper Limited, a prominent heavy electrical equipment manufacturer, experienced a notable surge of over 3% following the announcement of winning substantial orders worth Rs 588 crore. Among these orders, the company secured contracts amounting to Rs 468 crore in the Domestic transmission and distribution (T&D) segment from Power Grid Corporation of India (PGCIL) and other domestic customers. Additionally, Skipper Limited acquired international T&D business opportunities worth Rs 120 crore, showcasing its strong market presence and growth in both domestic and international sectors.

News from the IPO world🌐

• Arvind and Company Shipping Agencies IPO oversubscribed 359.42 times on Final day 
• Manappuram Finance arm Asirvad Micro Finance files for Rs. 1500 crore IPO
• Paymate plans IPO in 6-9 months

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