RBL Bank Stocks Decline, Marico reports slight decline in revenue

Technical Overview – Nifty 50

The positive takeaway from today’s trade was that Nifty recouped all of yesterday’s losses and most importantly, ended near the 19550 mark as bulls joined the conga line of rising global cues.

Index on yesterday’s session formed a hammer candle stick pattern which is identified as a bullish reversal pattern. And prices traded above the high of the pattern which confirms the validity of the pattern. The Index on the 60 mins chart has formed an island reversal pattern with the gap up opening.

The prices are still trading below their 9, 21 & 50 EMA and the RSI (14) has formed a double-bottom pattern near 40 levels and hovering near the same. Digging deeper, Nifty attempted to rebound but that said upside was uninspiring as traders remained directionless. Technically speaking, Nifty’s biggest hurdles for Friday’s trading session are seen at the 19,600 – 19,700 mark. Confirmation of strength only above the 19,700-mark support is seen at 19,400 levels.

Technical Overview – Bank Nifty

The Bank Nifty witnessed a gap up opening post witnessing a bearish breakdown on 04th Oct and recorded an intraday high at 44,391 levels and drifted lower almost 200 points towards the closing but ended with gains of half percent.

The banking index has witnessed a pullback on today’s session and retested its trend line resistance which is placed at 44,350 levels. The index is trading below its short and medium-term averages and the slope of the averages is tilted lower. The MACD indicator is reading below its line of polarity with a bearish crossover on the cards.

As the index has witnessed a bearish breakdown the view remains sell on the rise for the banking index. The immediate support for the index is placed at 43,850 and the upside is capped at 44,600 levels.

Indian markets:

• After a two-day decline, equity benchmarks ended positively on October 5 due to global market recovery. Recovery in global markets played a significant role in boosting investor confidence.
• Marginal pullback in US treasury yields contributed to the positive sentiment among investors.
• A slight decrease in the dollar index also helped in reviving investors’ confidence in the market.
• Positive signals from the Purchasing Managers’ Index (PMI) data had a favorable impact on market sentiment.
• Correction in crude oil prices provided an additional boost to market confidence.
• Reduction in selling by foreign institutional investors (FIIs) was observed, indicating a more stable market.
• Sectors like banking and information technology (IT) experienced a rebound, contributing to the overall positive market performance.

Global Markets

• Most European shares advanced while Asian stocks ended mixed on Thursday following a drop in oil prices and softer US labour data.
• Chinas markets remain closed for the weeklong holiday.
• US stocks broke a three-day losing streak Wednesday as Treasury yields pulled back from multiyear highs following the release of much weaker-than-expected jobs data.
• Wednesdays moves follow the release of new jobs data. ADP said 89,000 private payrolls were added last month. Thats well below an upwardly revised 180,000 payroll additions from August.

Stocks in Spotlight

• TCS gain 1.5 percent after being chosen by the Georgia Department of Labor to modernize its outdated legacy platform. The firm’s task involves replacing the 1980s-era system with a contemporary, cloud-based unemployment insurance platform. The company highlighted the new platform’s human-centric design, emphasizing its user-friendly features.
• Marico, in its report for the September quarter, noted a slight decrease in consolidated revenue compared to the same period last year. This decline was attributed to pricing corrections in significant domestic portfolios made over the past year. However, optimistic trends are anticipated in the second half of the year. This optimism is rooted in improved consumption patterns, especially in rural areas. Several factors contribute to this positive outlook, including retail inflation levels remaining within the Reserve Bank of India’s target range, increased minimum support prices (MSPs), a robust sowing season, reduced liquidity pressures, and heightened government spending. These factors collectively indicate a potential upturn in the company’s performance in the coming months.
• RBL Bank faced a 3 percent decrease in its stock value following the announcement of a 13 percent growth in deposits, totaling Rs 89,774 crore, on a year-on-year basis. The private sector lender disclosed these figures for the quarter ending September FY24. The bank’s total deposits for the period showed a 5 percent increase sequentially and a 13 percent growth compared to the previous year. Concurrently, gross advances saw a substantial rise of 21 percent year-on-year and 5 percent quarter-on-quarter, reaching Rs 78,186 crore. This information was shared through a filing with the Bombay Stock Exchange (BSE) dated October 4.

News from the IPO world🌐

• IPO fundraising slumps by 26% in H1 FY24 to Rs. 26,300 crore
• JSW Infra IPO debuts in style lists at 20% premium
• Fincare Small Finance Bank IPO gets SEBI approval

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers to track

Please visit www.fisdom.com for a standard disclaimer.