Nifty witnesses classical ‘Dead Cat Bounce’

Review & Preview @4PM —— Wednesday, October 23rd 2024

NIFTY (-37, 24436)
Sensex (-139, 80082)
Bank Nifty (-18, 51239)

Nifty witnesses classical ‘Dead Cat Bounce’

Digging deeper, Nifty’s morning rally was powered by IT stocks, which was quickly offset by a sharp downturn in the Pharma, PSE and Auto stocks.

Nifty ends in red close for 3rd day in a row.

# Sentimental Overview:

The Big Question: What Comes After a Dead Cat Bounce?

Strictly speaking, ‘Dead Cat Bounce’ is a temporary price recovery following losses, that is followed by more losses.

Immediate downside risk on Nifty is placed at 24350 mark; aggressive downside targets are at Nifty’s 200 DMA at 23353 mark.

The fear index, India VIX, which gauges the volatility in the Indian stock markets, ended higher by 1.32% at 14.59 points.

# Buzzing stocks:

1) Bajaj Finserv gained 1% after reporting an 8% year-on-year (Y-o-Y) increase in its consolidated net profit to Rs 2,087 crore for the second quarter of the financial year 2024-25 (Q2FY25), compared to Rs 1,929 crore in Q2FY24.
2) Can Fin Homes’ soared 4% after the company posted strong quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25).

3) Godrej Properties rebounded 1.8% Q2 PAT jumps 5-fold to Rs 335.21 crore. Its net profit stood at Rs 66.80 crore in the year-ago period.

# Technical Overview:

Technically speaking, Nifty faltered after a good start.

The negative takeaway was that Nifty ended lower for 3rd straight day as bears are still everywhere and most importantly, markets are unable to calm down amidst weakening technical landscape.

The long and short of today’s trading theme suggests that the unwinding of long positions at Dalal Street is not showing any signs of fatigue.

Confirmation of strength only above Nifty’s biggest hurdles at 24900 mark.

# Outperforming Nifty Sectors:
Nifty IT Index +2.28%
Nifty PSU Banks +0.39%

# Underperforming Nifty Sectors:
Nifty PHARMA (-1.59%)
Nifty PSE (-0.93%)
Nifty AUTO (-0.83%)
Nifty INFRA (-0.79%)

# Bulls of the day:
BAJFINANCE (+4.90%)
TECHM (+2.14%)
TATACONSUM (+1.78%)
BAJAJ-AUTO (+1.75%)
HDFCBANK (+1.26%)

# Bears of the day:
M&M (-3.22%)
SUNPHARMA (-2.69%)
EICHERMOT (-2.07%)
SHRIRAMFIN (-1.86%)
POWERGRID (-1.84%)
(Source NSSEINDIA.com)

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Disclaimer: This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Returns mentioned herein are in no way a guarantee or promise of future returns. Stock market investments are subject to market risks.