Nifty will be completely out of the woods only above 25300 mark.

*Review & Preview @4PM —— Wednesday, October 9th 2024*

NIFTY (-31, 24982)
Sensex (-168, 81467)
Bank Nifty (-14, 51007)

Nifty ends in red, giving up its strong intraday gains despite:

1) RBI changes stance to ‘neutral’
2) This dovish move opens the door for rate cuts in December

The good news however was that the Nifty Realty index jumped 2.26% as the relatively affordable home loan interest rate regime shall continue for homebuyers.

# Buzzing stocks:

1) Divis Laboratories was in limelight, gaining , reflecting an increase of 7.95% at Rs. 5988 after Citi initiated coverage with a “buy” rating and a price target of ₹6,400 per share.

Divis Lab is a leading player in the pharmaceutical sector, specializing in the production of active pharmaceutical ingredients (APIs) and intermediates.

2) Torrent Power shares gained 6.45%, and scaled a new high at Rs 1,984.70 per share.

The stock advanced after Torrent Power secured a letter of award from Maharashtra State Electricity Distribution (MSEDCL). It also inked a share subscription and shareholders’ agreement (SSSA) with Lakshmi Mills and Torrent Urja 17 Private Limited (TU17).

# Sentimental Overview:

The RBI kept its benchmark policy repo rate at 6.5% for the tenth consecutive time, in line with market expectations but the positive takeaway was that the RBI tweaked its policy stance to neutral.

Well, this dovish move opens the door for rate cuts in December as there are also early signs of a growth slowdown in the economy.

Please note, India’s annual inflation slightly accelerated to 3.65% in August 2024, driven by rising food prices, though it remained below the RBI’s target of 4% in five years.

Also, the RBI maintained its economic growth forecast for the fiscal year 2024-25 at 7.2%, with estimates of 7.0% for Q2, 7.4% for Q3, 7.4% for Q4, and 7.3% for Q1 of FY 2025-26.

The RBI also kept its inflation expectations at 4.5%, with projections of 4.1% for Q2; 4.8% for Q3; 4.2% for Q4, and 4.3% for Q1 of FY 2025-26.

# Technical Overview:

# After today’s volatility, the focus now is on: The US FOMC Meeting Minutes to trickle on Wednesday, 9th October 2024.

Technically, confirmation of strength only above Nifty’s biggest hurdles at 25300 mark.

Nifty’s biggest support is placed only at 24413 mark.

Nifty’s 200 DMA at 23189 mark.

Long story short: Nifty will be completely out of the woods only above 25300 mark.

# Outperforming Nifty Sectors:
Nifty REALITY (+2.26%)
Nifty PHARMA (+2.12%)
Nifty MEDIA (+0.87%)

# Underperforming Nifty Sectors:
Nifty FMCG (-1.37%)
Nifty Energy (-0.68%)
Nifty Oil & Gas (-0.67%)

# Bulls of the day:
CIPLA (+2.58%)
TRENT (+2.34%)
TATAMOTORS (+2.09%)
SBIN (+1.84%)
TECHM (+1.77%)

# Bears of the day:
ITC (-3.04%)
NESTLEIND (-2.44%)
ONGC (-1.69%)
RELIANCE (-1.67%)
HUL (-1.45%)

(Source NSSEINDIA.com)

 

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.

 

 

 

 

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