Pre-Market Snap: Global and Indian Market Updates for October 3, 2024

The global markets displayed mixed signals as of October 3, 2024, with Asian markets showing varied performances, U.S. indices closing slightly higher, and European markets seeing a marginal rise.

Indian markets, represented by the GIFT Nifty, Sensex, and Nifty 50, are expected to open lower due to global cues and investor caution. In addition, geopolitical tensions and economic developments are influencing market trends globally.

Global Indices Performance (As of 7:20 AM)

• GIFT Nifty (Asia): 25,721.0, down by 309.0 (-1.19%)
• Dow Jones (US): 42,196.52, up by 39.55 (+0.09%)
• Nasdaq (US): 17,925.12, up by 14.76 (+0.08%)
• S&P 500 (US): 5,709.54, up by 0.79 (+0.01%)
• Hang Seng (Asia): 21,943.37, down by 500.36 (-2.23%)
• Nikkei 225 (Asia): 38,686.08, up by 877.32 (+2.32%)
• Kospi (Asia): 2,561.69, down by 31.58 (-1.22%)
• FTSE 100 (Europe): 8,290.86, up by 14.21 (+0.17%)

Indian Indices (As of Most Recent Market Close)

• Sensex: 84,266.29, down by 33.49 (-0.04%)
• Nifty 50: 25,796.9, down by 13.95 (-0.05%)
• Nifty Bank: 52,922.6, down by 55.50 (-0.10%)
• India VIX: 11.99, down by 0.80 (-6.26%)

Market Bulletin

• GIFT Nifty is trading at 25,725, showing a 250-point discount, indicating a gap-down start for Indian markets.
• Sensex and Nifty 50 are expected to open lower due to mixed global cues and cautious investor sentiment.
• Asian markets are mixed: Japan’s Nikkei rises by 2.57%, while Hong Kong signals a lower opening. Chinese and South Korean markets remain closed for holidays.
• U.S. markets closed slightly higher, driven by tech stocks, while investors remain cautious due to escalating Middle East tensions and upcoming U.S. labor data.
• Geopolitical tensions rise following Iran’s missile attack on Israel, with Israel responding by targeting Hezbollah in Lebanon.
• The odds of a U.S. Federal Reserve rate cut in November have increased to 65.7%, reflecting shifting market expectations.
• SEBI has tightened rules for equity derivatives trading, raising the entry barrier and limiting weekly options contracts.
• Crude oil prices have surged amid concerns about potential supply disruptions due to Middle East conflicts.
• The U.S. dollar hit a one-month high against the yen, and the dollar index continues its upward trend.
• Stocks in Ban Period: Bandhan Bank, Birla Soft, Hindustan Copper, RBL Bank.

Technical Analysis

Nifty

1. Nifty traded in a 160-point range on Tuesday, closing below the flat line, marking its third straight day of losses.
2. Tested the critical level of 25,750; a break below could intensify the correction.
3. Pivot Points:
   • Resistance: 25,879, 25,919, 25,983
   • Support: 25,750, 25,710, 25,646
4. A Doji candlestick pattern on the daily charts indicates indecision, with lower highs and lower lows signaling a bearish trend.

Bank Nifty

1. Bank Nifty remained flat on Tuesday, closing below the 53,000 mark, down by over 1,500 points in the last three sessions.
2. Pivot Points:
   • Resistance: 53,151, 53,250, 53,409
   • Support: 52,832, 52,734, 52,574
3. Fibonacci Levels:
   • Resistance: 53,204, 53,446
   • Support: 52,413, 51,929
4. Bank Nifty has struggled to cross the 53,200 level; this is the key level to watch for any potential bounce.
5. A small bullish candlestick with a long upper shadow indicates selling pressure at higher levels, with a continued lower tops-lower bottoms pattern and negative momentum.

Options Data

Nifty Call Options

1. Maximum open interest is at the 26,000 strike (1.07 crore contracts), indicating key resistance.
2. Significant call writing at the 26,500 strike (39.94 lakh contracts), followed by the 25,800 and 25,900 strikes.
3. Maximum unwinding was seen at the 26,900 strike.

Nifty Put Options

1. Maximum open interest is at the 25,000 strike (77.74 lakh contracts), indicating key support.
2. Notable put writing at the 25,000 strike, followed by the 25,600 and 24,800 strikes.
3. Maximum unwinding occurred at the 26,000 strike.

Stocks in the Positive News

1. Maruti Suzuki: September sales up by 1.9% to 1.84 lakh units, exports up by 23.2% to 27,728 units.
2. Hero MotoCorp: Total sales up by 18.7% in September to 6.37 lakh units, exports up by 21.8% to 20,344 units.
3. Aurobindo Pharma: Receives USFDA approval for Cephalexin Tablets USP, 250 mg and 500 mg.
4. Hindustan Zinc: Highest-ever Q2 mined and refined metal production. Mined metal up by 2% to 256 kt, refined metal up by 8% to 262 kt.
5. Ashoka Buildcon: Receives two LoAs worth ₹1,264 crore for creek bridge construction.
6. NMDC: Production up by 1.3% to 3.04 MT, sales up by 13.8% to 3.54 MT.
7. ITC: ITC Infotech acquires 100% of Blazeclan Technologies for ₹485 crore.
8. SMS Pharma: Receives EDQM certification to supply Ibuprofen in Europe and EUGMP certification for Visakhapatnam facility.
9. Mankind Pharma: Acquires Bharat Serums and Vaccines after regulatory approvals.
10. HDFC Bank: Incorporates HDFC Securities IFSC at GIFT City.
11. Tata Power Co.: Completes amalgamation of Tata Power Renewable Energy with subsidiaries, effective from October 1, 2024.
12. Reliance Infrastructure: To raise ₹22,930 crore via foreign currency bonds.

Stocks in the Negative News

1. Coal India: September coal production down by 1% to 50.9 MT, offtake down by 1.4% to 54.4 MT.
2. South Indian Bank: CASA ratio declines to 31.85% from 32.03%.
3. Dilip Buildcon: Transfers stakes in arms to Alpha Alternative Holdings for ₹236.3 crore.
4. Dabur India: Expects mid-single-digit decline in Q2 revenue due to heavy rains and floods; operating margins to decrease.
5. BSE, Angel One, IIFL Securities, 5 Paisa: SEBI’s increase in contract sizes in index derivatives will require more margins, impacting revenue.

FII/DII Data (October 1, 2024)

• FIIs: Net sellers with a total of ₹-5,579.4 Cr.
• DIIs: Net buyers with a total of ₹4,609.6 Cr.

PCR (Put/Call Ratio) Data

• Nifty: 0.6706
• Bank Nifty: 0.6828
• Fin Nifty: 0.7099
• Midcap Nifty: 1.2027
• Sensex: 0.604

A PCR above 1 indicates bearish sentiment, while a PCR below 1 suggests a bullish market outlook. Monitoring the overall trend in the PCR is essential to assess market sentiment.

The global markets are experiencing mixed trends, with cautious sentiment prevailing among investors due to geopolitical and economic factors. Indian markets are expected to open lower, while key stocks in the news show varied performances based on individual company developments.

Tags: global indices, Indian market, stock market, GIFT Nifty, Sensex, Nifty 50, Bank Nifty, technical analysis, stocks in the news, SEBI, crude oil prices, FII/DII data, options data, market overview, PCR analysis