Trends in the SGX Nifty Index Futures for October delivery, which was trading at 18,560 at 8:00 AM IST, indicated a positive opening for Nifty today.

The S&P and Nasdaq closed higher on Monday with the biggest boosts from the highest-profile technology and communications companies while investors eyed product news from Apple Inc and appeared optimistic about the third-quarter earnings season.

Production at U.S. factories fell by the most in seven months in September as an ongoing global shortage of semiconductors depressed motor vehicle output, further evidence that supply constraints were hampering economic growth.

NIFTY: Technical Outlook: Indian shares rose on Monday and key benchmark indexes hit fresh record highs, despite weak cues from other Asian and European markets after data showed China’s economic growth slowed further in the third quarter. The broader NSE Nifty index surged to a record high of 18,543 before settling at 18,477.05, up 138.50 points, or 0.76 percent, from its previous close. The index has formed a bullish candle pattern in the daily but witnessed profit booking at higher levels. During the day we can expect fresh selling pressure if the index trades below 18440 levels. The short-term trend remains bullish and the trend will turn bearish only if the index closes below 18350.

Index Levels:

Sectors In Focus:

Derivatives Watch: Based on OI, FII’s have decreased their long position by 4933 contracts and have increased their short position by 813 contracts. FII’s are net bullish for the day. In NIFTY, the highest PUT OI was seen at the 18300 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 DalBharat, NationAlum, PNB, SAIL, Escorts & IndiaCem. We are bearish on AmarajaBat, LTI, ACC, Asian Paints, NavinFluor & GMRInfra.

Economy & Stocks to watch:

  • The International Monetary Fund (IMF) has cautioned that any tapering by the US Federal Reserve and similar action by other central bankers would lead to some capital flow out of India even as the country has enough foreign exchange at the moment, amid high foreign direct and portfolio investments. The IMF has also cut India’s potential growth rate in the medium term to six percent from earlier 6.25 percent due to the impact of Covid on investments and labor markets.
  • The National Company Law Tribunal (NCLT) allowed Reliance Retail Ventures Ltd (RRVL) and Reliance Retail & Fashion Lifestyles Ltd (RRFLL) to hold extraordinary general meetings (EGMs) of their shareholders and creditors to acquire Future Group’s businesses. The NCLT said the objections raised by American retail giant Amazon were premature and could be dealt with later. On September 28, the NCLT had allowed six Future Group companies to hold meetings of their respective shareholders and creditors.
  • Adani Ports and Special Economic Zone (APSEZ) on Monday said the company has raised Rs 1,000 crore today by allotment of 10,000 rated, listed, secured, redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000/- each on private placement basis,” it said.
  • Telecom operator Vodafone Idea (VIL) and smart world and communication business of engineering and construction conglomerate Larsen and Toubro (L&T) have joined hands for a pilot project to test 5G based smart city solutions, according to a statement. This is part of the ongoing 5G trials on the government-allocated spectrum. Announcing the collaboration in a joint statement, the companies said the pilot project would be set up in Pune on government-allocated 5G spectrum to visualize and analyze smart city applications.
  • Sterlite Power on Monday said it has bagged Nangalbibra -Bongaigaon inter-state power transmission project worth Rs 324 crore. “Sterlite Power, a leading private sector power transmission infrastructure developer, and solutions provider has been awarded the Nangalbibra-Bongaigaon interstate power transmission project worth Rs 324 crore through tariff-based competitive bidding (TBCB) by virtue of emerging as the L1 bidder,” a company statement said. The project elements consist of a new 220/132 kV substation at Nangalbibra and laying of 130 km of 400kV D/c transmission line connecting Bongaigaon in Assam to Nangalbibra in Meghalaya across the river Brahmaputra, it added.

Trading Activity Analysis – 18/10/2021