• Trends in the SGX Nifty Index Futures for October delivery, which was trading at 18,440 at 8:30 AM IST, indicated a flat opening for Nifty today.
  • The Federal Reserve will wait until 2023 before raising interest rates, according to a majority of economists in a Reuters poll who nonetheless said the greater risk for the U.S. economy was persistently higher inflation over the coming year.
  • U.S. homebuilding unexpectedly fell in September and permits dropped to a one-year low amid acute shortages of raw materials and labor, supporting expectations that economic growth slowed sharply in the third quarter. Housing starts dropped 1.6% to a seasonally adjusted annual rate of 1.555 million units last month, the lowest level since April.

NIFTY: Technical Outlook Indian shares reached fresh record highs on Tuesday before giving up all gains to end in the red on the back of mixed global cues. The Nifty index rose above 18,600 for the first time before closing down 58.3 points at 18,418.75, snapping a seven-day winning streak. ITC slumped as much as 6.3 percent on news of the government forming a committee to finalize tobacco policy. The Nifty has formed a bearish candle pattern in daily as the index witnessed selling pressure at higher levels. During the day we can expect the selling pressure to continue if the index trades below 18400 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 (Intraday):

Derivatives Watch

  • Based on OI, FII’s have increased their long position by 22422 contracts and have increased their short position by 3322 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 18800 strikes will act as a major resistance level.
  • Based on Open Interest, We are bullish on OFSS, Manappuram, Coforge, LTTS & Siemens. We are bearish on IRCTC, Ambuja Cem, HindUniLVR, DalBharat, PolyCab & Bandhan Bank.

Economy & Stocks to watch:

  • Global rating agency Moody’s has upgraded the outlook on the Indian banking system from “Negative” to “Stable” on the back of stabilizing asset quality and improved capital. The deterioration of asset quality since the onset of the Coronavirus pandemic has been moderate, and an improving operating environment will support asset quality. The level of problem loans for rated banks has moved down from 8.5 percent in FY19 to 7.1 percent in FY21.
  • ICICI Prudential Life Insurance Co Ltd reported a nearly 47 percent jump in its net profit to Rs 445 crore for the second quarter ended September 30. The company had posted a net profit of Rs 303 crore in the corresponding quarter of the previous financial year 2020-21. The total income during July September 2021 also rose to Rs 23,188 crore, compared with Rs 16,715 crore in the year-ago period, ICICI Pru Life said in a regulatory filing. As against this, a massive Rs 500-crore net COVID-19 claims left the second-largest private-sector life insurer in the red with a Rs 186-crore net loss in the June 2021 quarter, despite it reporting good all-round numbers, including a 71 percent growth.
  • FMCG major Nestle India Ltd reported a 5.15 percent rise in net profit to Rs 617.37 crore for the third quarter ended September, driven largely by high single-digit volume growth in the domestic market. The company, which follows the January-December financial year, had posted a profit of Rs 587.09 crore in the same period a year ago, Nestle India said in a BSE filing. Net sales rose 9.63 percent to Rs 3,864.97 crore as against Rs 3,525.41 crore earlier. Nestle India Chairman and Managing Director Suresh Narayanan said, “This quarter has once again seen the Company deliver ‘double-digit broad-based value growth’ in domestic sales across categories.”
  • ACC Ltd reported a 23.74 percent increase in consolidated net profit to Rs 450.21 crore for the third quarter ended September 30, 2021. The company, which follows the January-December financial year cycle, had posted a profit of Rs 363.85 crore in the same quarter a year ago. Total revenue from operations of ACC, a subsidiary of Swiss building material major Holcim group, rose 5.98 percent to Rs 3,749 crore from Rs 3,537.31 crore earlier.
  • Reliance Retail Ventures Ltd (RRVL) has acquired a 52 percent stake in veteran couturier Ritu Kumar’s firm Ritika Pvt Ltd for an undisclosed amount. “RRVL’s majority equity acquisition in Ritika Pvt Ltd included completely acquiring Everstone’s 35 percent stake in the company,” a joint statement said. Everstone is a global equity firm.