Nifty ended lower for the 4th straight week, and is now down 6.32% for October month

*The Week That Was @ 7:30 AM – Saturday, October 26th 2024*

October 21st to October 25th 2024.

# It was sea of red at Dalal Street.

# The pessimism was such that there was absolutely no place to run, no place to hide and it looked as if the sky was falling.

# Please note, Nifty ended lower for the 4th straight week, and is now down 6.32% for October month and the negative is that the benchmark has plunged around 8% from its recent high of 26277.30.

Nifty (-2.71%, 24181)
Sensex (-2.24%, 79402)

 

# Extreme fear was back on Dalal Street as it appeared to be a start of tense time for investors on backdrop of four-big negative catalysts:

1) Intense FIIs selling (This October month, FIIs have pulled out over Rs 100,242 crore from Indian equities).

2) Uninspiring corporate India’s Q2 earnings.

3) Fading prospects for aggressive rate cuts from the Federal Reserve. (According to CME’s FedWatch Tool, Markets are currently pricing in a 95.1% chance of only a 25-basis-point cut at the Fed’s November meeting).

4) Anxiety also prevailed ahead of US elections where voters go to the polls on November 5th to elect their next president. The big question: Whether United States of America will get its first woman president or Donald Trump will get a second term?

5) Traders also brace for Maharashtra Assembly polls which will be held in a single phase on November 20. Jharkhand polls will be held in two phases on November 13 and 20th.

Counting of votes for the two states will take place on November 23.

# Long story short: Nifty’s downside risk and its biggest support continues to be at its 200-DMA at 23380 mark.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty
24181 (-2.71%)
Sensex
79402 (-2.24%)
Bank Nifty 50787 (-2.51%)
Nifty Midcap 15420 (-6.32%)
India VIX 14.63 +12.23%

Dow Jones
42114 (-2.68%)
Nasdaq
20352 +0.14%
Bovespa
129893 (-0.46%)

Crude Oil 71.19 +3.76%
Gold 2731 +0.36%
Silver 33.72 (-0.61%)
USD/INR 84.08 +0.01%

# Here are how indices performed in the week gone by:

1) Nifty ended 2.71% lower as cautious trading prevailed all-thru the week and the negative takeaway was that Nifty is on track for its worst monthly performance since March 2020.

2) Bank Nifty too fell like a rock, down 2.51%.

3) Nifty Private Bank index dropped 3.15% lower while Nifty PSU Bank index plunged 5.81% lower on weekly basis.

4) In broader markets, the Nifty Mid-cap 100 index slumped 6.32% lower while the Nifty Small-cap index nose-dived 6.45%.

Bullish Sectors:
Nifty IT (-0.16%).

Bearish Sectors:
Nifty PSE Index (-7.46%)
Nifty Media (-7.24%)
Nifty Metal (-7.32%)
Nifty Reality Index (-6.97%)
Nifty Oil & Gas Index (-6.21%)
Nifty Auto Index (-5.36%)
Nifty Energy (-5.20%)
Nifty Infra Index (-5.11%)
Nifty FMCG Index (-3.50%)
Nifty Pharma (-3.35%)

STOCK SPECFIC NEWS:

1) Hindustan Unilever (HUL) fell by 7% after reporting a 4% decline in its standalone net profit for the quarter ended September 2024, which reached Rs 2,612 crore, compared to Rs 2,717 crore posted in the same period last year. Sluggish urban consumption actually tempered Q2 numbers.

2) Colgate’s share price plunged 9% even after its net profit rose 16.2% to Rs 395 crore in Q2FY25. Revenue climbed 10 per cent to Rs 1,619 crore.

3) Bajaj Finserv dropped 6% 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.

4) Can Fin Homes’ was seen consolidating, down only 1.21% after the company posted strong quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25).

5) Godrej Properties’ stock price fell around 6.5% Q2 PAT jumped 5-fold to Rs 335.21 crore. Its net profit stood at Rs 66.80 crore in the year-ago period.

6) Shipbuilding shares sink: Mazagon Dock (-10%), GRSE (-15%), Cochin Ship plunged 13% lower on a weekly basis.

7) Oberoi Realty ended a tad higher, up 0.05% after the company posted a strong set of September quarter results (Q2FY25). Also helping sentiments were reports that Oberoi Realty has sold luxury homes worth Rs 1,348 crore in its newly launched 75-acre residential project at Thane in Mumbai Metropolitan Region.

8) RBL Bank came under significant selling pressure, falling 21% to hit a low of ₹158. The decline was driven by the bank’s disappointing September quarter performance, which highlighted challenges in the unsecured credit segment.

9) Hyundai IPO witnessed muted stock market debut as it ended at Rs. 1844.

# In the week gone by, notable gainers amongst Nifty 50 were:
HDFC BANK +3.66%
TECH MAHINDRA +1.69%
BAJAJ AUTO +1.41%
BAJAJ FINANCE +0.15%

# And the losers were:
INDUSIND BANK (-22.69%)
TATA CONSUMER (-10.99%)
BPCL (-10.57%)
ADANI ENTERPRISES (-10.28%)
HINDALCO (-9.92%)

 

 

*DISCLAIMER*

SEBI study dated January 25, 2023 on ‘Analysis of Profit & Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment’ wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

*RISK DISCLOSURES ON DERIVATIVES:*

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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