Key Market Takeaways – 21 October 2024
Volatility Index: Low at 13.76
- Low: Below 15
- Medium: Between 15-20
- High: Above 20
Index Performance Recap
- Nifty 50 dropped below 24,700 in early trading, facing a volatile session throughout the day.
- Bank Nifty started the week with a pessimistic tone, unable to carry forward last Friday’s optimism.
- Sensex experienced similar bearish trends.
Action Points for Key Indices
| Index | CMP | Positional Trend | Positional Support | Positional Resistance | PCR | Max Pain |
|---|---|---|---|---|---|---|
| Nifty 50 | 24,781.00 | Slightly Bearish | 24,700 – 24,600 | 25,000 – 25,200 | 0.81 | 24,800 |
| Bank Nifty | 51,963.00 | Slightly Bearish | 51,500 – 51,100 | 52,300 – 52,800 | 0.87 | 52,000 |
| Sensex | 81,151.00 | Slightly Bearish | N/A | N/A | N/A | 82,100 |
Technical Outlook for Nifty 50
- The weakness in broader markets places Friday’s low around 24,600 (which aligns with the 89-day exponential moving average) as a crucial support level.
- Resistance stands at 25,000, coinciding with the 50-day EMA, followed by a significant hurdle at 25,250.
Option Chain Analysis
- Call Writers were active at the 25,000 and 24,900 strikes, adding fresh positions.
- Put Writers unwound positions in the 24,800-24,500 range, signaling cautious sentiment.
Put-Call Ratio (PCR)
- The overall market sentiment remains sideways, with the PCR for Nifty at 0.81.
| Date | PCR |
|---|---|
| 21-10-2024 | 0.81 |
| 18-10-2024 | 0.93 |
| 17-10-2024 | 0.88 |
| 16-10-2024 | 0.74 |
FII and DII Activity
- Foreign Institutional Investors (FII) were net sellers with a withdrawal of ₹2,261.83 crore.
- Domestic Institutional Investors (DII) stepped in with net purchases amounting to ₹3,225.91 crore.
F&O Expiry Watch
- FINNIFTY expiry saw active participation, with a focus on stock-specific trades amidst heightened volatility.
Actionable Trading Ideas
- Given the choppy market, it’s wise to focus on stock-specific opportunities, but traders should exercise caution as several individual stocks have faced sharp declines.
Key News & Events
- UltraTech Cement: Q2 net profit declined by 36% YoY to ₹820 crore, missing expectations due to weak demand and project delays.
- Tejas Network: Shares surged 20% to ₹1,425.20 after the company posted strong Q2 results with revenue skyrocketing nearly 7x to ₹2,811 crore.
- Tata Consumer Products: The stock fell over 7% as Q2 net profit remained flat at ₹359 crore, despite a 13% revenue increase.
- Kotak Mahindra Bank: Shares dropped nearly 5% as Q2 profit rose 5% YoY to ₹3,344 crore, missing market estimates.
- Netweb Technologies: Shares hit a record high after the company’s Q2 net profit surged 70.2% YoY to ₹25.7 crore.
Stay tuned for more updates on market trends, key events, and actionable insights!