Pre-Market Snap: Global and Indian Indices, Stocks in Focus, and Key Market Insights for October 9, 2024

The stock market is poised for an eventful day on October 9, 2024, with a positive opening expected for Indian indices. Global markets are also showing gains across major indices.

Investors will keep a close eye on the Reserve Bank of India’s (RBI) monetary policy decision today, while notable companies remain in focus for their latest developments.

Global Indices Update (As of 7:24 AM)

The global markets displayed a mixed performance, with several major indices showing positive movement. Here’s a snapshot:

• GIFT Nifty: +32.5 points (+0.13%) at 25,154.0
• Dow Jones: +126.13 points (+0.30%) at 42,080.37
• Nasdaq: +259.01 points (+1.45%) at 18,182.92
• S&P 500: +55.19 points (+0.97%) at 5,751.13
• Hang Seng: +297.86 points (+1.42%) at 21,224.65
• Nikkei 225: +356.47 points (+0.92%) at 39,294.01
• Kospi: -16.02 points (-0.61%) at 2,594.36
• FTSE 100: -113.01 points (-1.36%) at 8,190.61

Indian Indices Update (As of Market Close on October 8, 2024)

Indian stock indices are anticipated to open higher, following a rebound after six days of losses.

• Sensex: +584.81 points (+0.72%) at 81,634.81
• Nifty 50: +217.40 points (+0.88%) at 25,013.15
• Nifty Bank: +542.10 points (+1.07%) at 51,021
• India VIX: -0.49 points (-3.27%) at 14.59

Market Bulletin

Key highlights for the day:

1. Indian stock indices are expected to open on a positive note.
2. RBI’s monetary policy decision is due today, with the repo rate likely to remain unchanged.
3. Sensex and Nifty rebounded after six days of losses.
4. Asian markets traded higher, with Japan’s Nikkei up 1% and Hong Kong pointing to gains after Wall Street’s rally.
5. U.S. markets surged as tech stocks led the gains, with Nasdaq up 1.45% and Nvidia rising by 4.1%.
6. FTSE Russell plans to include Indian bonds in its Emerging Markets Index starting 2025.
7. The U.S. Federal Reserve hinted at possible rate cuts due to easing inflation.
8. Oil prices saw a rise after a sharp decline earlier in the week.
9. The Indian rupee strengthened by 2 paise to close at 83.96 as the dollar and Brent crude dipped.
10. Hyundai Motor India sets its IPO price band at ₹1,865-1,960 for its public issue, opening on October 15.
11. Securities in the ban period include Bandhan Bank, Birla Soft, GNFC, Granules, Hindustan Copper, IDFC First Bank, Manappuram, PNB, RBL Bank, and Sail.

Technical Analysis

Nifty 50

1. Nifty ended a six-day losing streak, closing above 25,000.
2. The index defended its September swing low of 24,750 and reversed, closing near the day’s high.
3. A bullish Harami pattern is emerging, with follow-up buying needed for confirmation. A drop below 24,800 could lead Nifty to 24,500.
4. Consolidation is expected unless Nifty closes above 25,500. Key support levels are between 24,750-24,700.
5. Resistance levels are at 25,048, 25,115, and 25,225, with support levels at 24,828, 24,761, and 24,651.
6. Nifty formed an Inside Bar, maintaining its upward support trendline. RSI and MACD show positive momentum, though the index remains below the 50-day EMA.

Bank Nifty

1. Bank Nifty gained 500 points, closing above 51,000, offering relief to bulls.
2. A Bullish Harami pattern (not classical) emerged, but the index is still below its 50-day EMA and 20-day SMA.
3. Resistance levels are at 51,159, 51,327, and 51,598, with support at 50,616, 50,449, and 50,178. Fibonacci retracement shows resistance at 51,826 and 52,323, and support at 50,681 and 49,648.

Nifty Call Options Data

1. Maximum open interest is at the 26,000 strike (97.94 lakh contracts), acting as key resistance.
2. Additional resistance is seen at 25,500 (73.92 lakh contracts) and 25,000 (55.84 lakh contracts).
3. Maximum call writing was observed at the 25,000 strike with 9.75 lakh contracts added.
4. Maximum unwinding occurred at the 25,800 strike with 7.44 lakh contracts shed.

Nifty Put Options Data

1. Maximum open interest is at the 24,000 strike (70.91 lakh contracts), acting as key support.
2. Additional support is seen at 25,000 (43.61 lakh contracts) and 24,500 (41.67 lakh contracts).
3. Maximum put writing occurred at the 25,000 strike with 19.68 lakh contracts added.
4. Maximum unwinding occurred at the 25,700 strike with 98,225 contracts shed.

Stocks in the Positive News

1. Vedanta: Board meeting rescheduled for the fourth interim dividend, now to be held on October 9.
2. Dr. Reddy’s Laboratories: Aurigene Oncology, a subsidiary, reports positive Phase 1 results for Ribrecabtagene Autoleucel. DGCI approves Phase 2 of the SWASTH study for India’s first CAR-T cell therapy trial for multiple myeloma.
3. Premier Energies: The subsidiary signed a Module Supply Agreement to deliver 173.35 MWp solar modules for a Rajasthan power project.
4. Signature Global: Pre-sales grew 184% to ₹32,780 crore despite the Shradhh period. Net debt reduced to ₹1,020 crore.
5. Tata Technologies: Forms a joint venture with BMW Group to create BMW TechWorks India for automotive software innovations.
6. SKF India: Approves the demerger of its industrial business into a new wholly-owned subsidiary.
7. Welspun Enterprises: Wins a ₹1,989 crore waterway tunnel project from Brihanmumbai Municipal Corporation.
8. Gensol Engineering: Solar EPC order book crosses ₹4,097 crore, representing 1.5 GW as of September 30, 2024.
9. Infosys: Expands its four-year contract with an old national bank to transform operations and digitize processes.
10. JK Lakshmi Cement: All lenders of its subsidiary Udaipur Cement Works waive a corporate guarantee of ₹1,640 crore, securing banking facilities solely with UCWL’s assets.
11. Senco Gold: Retail growth increased by 27% year-on-year in Q2, with same-store sales growing 20% and the stud ratio improving to 11.1%.
12. The Phoenix Mills: Q2 retail sales grew 25% year-on-year to ₹3,289 crore, while gross retail collections increased 27% to ₹812 crore.
13. NCL Industries: Cement production and dispatches increased by 10% year-on-year. Cement board production grew by 6%, and ready-mix concrete production surged 22% year-on-year in Gujarat.
14. Namo eWaste Management: Acquired 2 acres in Telangana’s Electronic Manufacturing Cluster to set up an e-waste recycling plant for ₹3 crore.
15. Timken India: Received an income tax demand of ₹25 crore for the assessment year 2021-22.
16. Schneider Electric Infrastructure: The Appellate Authority upheld a ₹2.21 crore demand, including interest and penalties, for FY 2017-18.

Stocks in the Negative News

1. Ola Electric: The Ministry of Road Transport and Highways may seek an explanation from Ola regarding consumer complaints, with the possibility of a voluntary recall.
2. PB Fintech: IRDAI has issued a show-cause notice to PolicyBazaar Insurance Brokers. The company is required to submit its response within the stipulated timeline.
3. Bharti Airtel: The company is evaluating potential acquisitions, with talks underway with Tata Play, although no material disclosure has been made yet.
4. JSW Infra: Managing Director & CEO Arun Maheshwari is set to step down, effective November 7, 2024.
5. Lakshmi Organic Industries: The specialty chemicals production facility at Raigad MIDC is under inspection until October 16.
6. Vraj Iron and Steel: The company has signed a procurement agreement with NMDC for iron ore lumps over a three-year period.
7. Timken India: The Income Tax Department has demanded an additional ₹25 crore due to a ₹100.3 crore discrepancy in assessed income for AY 2021-22.
8. Schneider Electric Infrastructure: The company’s appeal was rejected by the Appellate Authority, which upheld a ₹2.21 crore demand, including penalties.

FII and DII Data (October 8, 2024)

• FII: Net sellers with an outflow of ₹5,729.6 crore.
• DII: Net buyers with an inflow of ₹7,000.7 crore.

PCR of Indices (Weekly Expiry)

• Nifty: 0.5515
• Bank Nifty: 0.6711
• Fin Nifty: 1.0853
• Midcap Nifty: 1.2274
• Sensex: 0.889

A PCR above 1 suggests an increase in bearish sentiment, while a PCR below 1 indicates a bullish outlook.

With a positive start expected for Indian indices and key stocks in the spotlight, the market outlook remains cautiously optimistic. Investors should stay informed and conduct due diligence before making any investment decisions.

Tags: Stock Market, Indian Indices, RBI Monetary Policy, Technical Analysis, Pre-Market Update, Global Indices