Gap-Up Opening On Cards For Nifty Today

  • Trends in the SGX Nifty Index Futures for October delivery, which was trading at 18,430 at 8:00 AM IST, indicated a gap-up opening for Nifty today.
  • U.S. stocks rose on Friday and the Dow scored its biggest weekly percentage gain since June, as Goldman Sachs rounded out a week of strong quarterly earnings for the big banks.
  • Oil prices hit their highest in years on Monday as demand continues its recovery from the COVID-19 pandemic, boosted by more custom from power generators turning away from expensive gas and coal to fuel oil and diesel.

NIFTY: Technical Outlook Indian stock markets remain closed on Friday on account of Dussehra. Indian shares rose for the sixth straight session on Thursday amid firm global cues and the weekly F&O expiry. Investors cheered strong earnings results from some top IT companies as well as data showing a slowing of the annual rate of inflation based on the monthly wholesale price index. The broader NSE Nifty index soared 176.8 points to reach a new record closing high of 18,338.55. The index has formed a bullish candle pattern both in daily and weekly time frames indicate the positive momentum to continue in the near term. The short-term trend remains bullish and the trend will turn bearish only if the index closes below 18200.

Index Support and Resistance :

Derivatives Watch :

  • Based on OI, FII’s have increased their long position by 11529 contracts and have decreased their short position by 2745 contracts. FII’s are net bullish for the day.
  • In NIFTY, the highest PUT OI was seen at 18100 strikes which will act as a strong support level. The highest CALL Open Interest was seen at 19000 strikes, followed by 18500 strikes will act as a major resistance level.
  • Based on Open Interest, We are bullish on Nam-India, IRCTC, Hindalco, Delta Corp & Ramco Cement. We are bearish on HDFC Life, HAL, HCL Tech, Concor & Oberoi Realty

Economy & Stocks to watch:

  • The International Monetary Fund (IMF) said India’s economy is gradually recovering after it was hit by two Covid waves, but it cautioned the authorities against inflationary pressures. The agency recommended a slow reduction in monetary policy support as recovery gains ground. The IMF said while the impact of Covid-19 on investment and human capital could prolong the recovery and affect medium-term growth, the recovery could also be faster than expected because of the pace of vaccination and economic reforms.
  • Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said fiscally prudent states must step up their quality expenditure in a way that it would have a multiplier effect on the economy and would prompt other states to increase their own capital expenditures. Das stressed that the quality of expenditure by states was important as they incurred 60 percent of the general government expenditure (the Centre plus state combined), whereas the global average of subnational spending was just about 30 percent.
  • Reliance Brands Ltd (RBL) will pick a 40 percent minority stake in renowned fashion designer Manish Malhotra’s MM Styles Pvt Ltd, for an undisclosed sum, the two companies said on Friday. This is the first external investment for the brand, which had so far been privately held by the designer. The strategic partnership is aimed at accelerating the 16-year-old couture house’s growth plans in India and across the globe, they said in a joint statement.
  • Indiabulls Real Estate Ltd’s (IBREL) sales bookings jumped over two-fold to Rs 874 crore during the first six months of this fiscal year from Rs 368 crore in the corresponding period of the previous year on the revival of housing demand. The gross collection also rose to Rs 654 crore during the April-September period from Rs 284 crore in the year-ago period. “Consolidated debt of the company net of cash and liquid investments is Rs 967 crore as of September 30, 2021, vs Rs 2,025 crore as of March 31, 2020.
  • Diagnostic chain Metropolis Healthcare said its board has approved the acquisition of Hitech Diagnostic Centre and its subsidiary Centralab Healthcare Services for a cash consideration of Rs 636 crore. The company’s board had earlier approved the acquisition partly by cash consideration of Rs 511 crore and equity consideration of up to 4,95,000 fully paid-up equity shares of Rs 2 each.