Nifty: Prices attempted to retest around the 24,900 level but faced a quick drop, testing Friday’s low. A late-hour sell-off led to a 1.25% loss, closing at 24,472.
Bank Nifty: Sellers intensified shortly after the open, consistently pushing the index lower, resulting in losses close to 700 points.
Action Points
Index
Nifty (CMP: 24,472.00)
Bank Nifty (CMP: 51,257.00)
Sensex (CMP: 80,221.00)
Positional Trend
Bearish
Bearish
Bearish
Positional Support
24,300-24,200
51,000-50,700
—
Positional Resistance
24,600-24,700
51,600-51,800
—
PCR
0.73
0.59
—
Max Pain
24,650
51,500
81,500
Technical Outlook – Nifty
Nifty Breakdown: Slipped below the 89 DEMA for the first time since June, confirming a “Head and Shoulders” breakdown.
Option Chain Insights: Call writers added meaningful positions in the 24,600-24,700 strike range, indicating a lower resistance hurdle.
Put Call Ratio (PCR)
Date
PCR
22-10-2024
0.73 (Oversold)
21-10-2024
0.81
18-10-2024
0.93
17-10-2024
0.88
FII/DII Cash Activity (22-10-2024)
FII: (-₹3,978.61 crore)
DII: (₹5,869.06 crore)
FII Future Index Activity
Date
Long-Short Ratio
22-10-2024
32%
21-10-2024
33%
18-10-2024
34%
17-10-2024
33%
16-10-2024
33%
F&O Expiry Watch
Bank Nifty: The midcap space witnessed a sharp decline, breaking below key support levels, indicating further downside risk.
Avoid Long Positions: Traders should refrain from taking long positions until clear signs of a bullish reversal emerge.
Midcaps Under Pressure: Midcaps have sharply declined, breaking key supports, signaling more pain ahead.
News & Events
Zomato: Approved raising ₹8,500 crore through a QIP. Q2 FY25 net profit soared 389% YoY to ₹176 crore.
Adani Energy: Q2 revenue surged 68.3% to ₹6,183.7 crore, with net profit up 172% to ₹773.39 crore.
Persistent Systems: Q2 revenue increased 5.8% QoQ to ₹2,897 crore.
Varun Beverages: Q2 net profit rose 22.4% YoY to ₹628.82 crore.
M&M Financial Services: Q2 net profit was ₹369.5 crore, with revenue at ₹3,897.5 crore. NPAs increased to 3.83% from 3.56%.
Key Takeaway: Markets are under significant pressure with bearish trends across major indices. Traders are advised to stay cautious and avoid long positions until a clear reversal signal is identified. Midcaps and financial stocks are seeing heightened selling pressure.