Panic-selling gripped Dalal Street as Nifty was seen collapsing and so was optimism.

*The Week That Was @ 7:30 AM – Saturday, October 5th 2024*

September 30th to October 4th 2024.

Panic-selling gripped Dalal Street as Nifty was seen collapsing and so did optimism.

The negative takeaway was that Nifty’s dramatic selloff brought the benchmark near to the psychological 25000 mark.

Nifty (-4.45%, 25015)
Sensex (-4.54%, 81688)

# Before we get into detail, first things first… Here are how indices performed in the week gone by:

1) Nifty tumbled 4.45% as extreme fear was being witnessed as pessimism was all over at Dalal Street.

2) Bank Nifty too tanked 4.41% forming an ‘Evening Star’ pattern on the weekly.

3) Nifty Private Bank index dropped -5.11% lower while Nifty PSU Bank index dropped 2.03% on weekly basis.

4) In broader markets, the Nifty Mid-cap 100 index tumbled 3.53% while the Nifty Small-cap index slipped 2.51% lower.

Bullish Sectors:
Nifty Metal (+0.48%)

Bearish Sectors:
Nifty Reality Index (-7.69%)
Nifty Auto Index (-6.10%)
Nifty Infra Index (-5.53%)
Nifty Oil & Gas Index (-5.07%)
Nifty PSE Index (-3.96%)
Nifty FMCG Index (-3.74%)
Nifty Media (-2.07%)
Nifty Pharma (-1.80%)
Nifty IT (-0.95%)

 

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 25015 (-4.45%)
Sensex 81688 (-4.54%)
Bank Nifty 51462 (-4.41%)
Nifty Midcap 16388 (-3.57%)
India VIX 14.13 +18.10%

Dow Jones 42353 +0.09%
Nasdaq 20035 +0.13%
Bovespa 131792 (-0.71%)

Crude Oil 74.38 +9.09%
Gold 2653 -0.21%
Silver 32.20 +0.48%
USD/INR 84.04 +0.38%

# Now, here the key catalysts in the week gone by:

1) It was a violent week in the Middle East on backdrop of rising geopolitical tensions, with casualties mounting in Lebanon from Israel’s onslaught.

2) Crude oil futures rose above $74 per barrel, trading at a four-week high as escalating conflict in the Middle East continued to pose supply risks.

3) Fears intensified after US President Biden discussed whether the US would support Israel striking Iran’s oil assets as retaliation against the Iran’s recent missile attack.

4) Dow Jones scores record high, ekes out weekly gain after strong jobs report

STOCK SPECFIC NEWS:

1) ITD Cementation zoomed 19% higher after the company secured a new contract to construct a multi-story commercial building in Uttar Pradesh. The contract is valued at approximately Rs 1,937 crore, inclusive of taxes and duties.

2) Shakti Pumps shares zoomed 11.8% higher at Rs 4547 on plans of 5:1 bonus issue.

3) Aurobindo Pharma declined 3% after the US Food and Drugs Administration (USFDA) inspected Apitoria Pharma, a subsidiary of Aurobindo Pharma’s Active Pharmaceutical Ingredient (API) manufacturing facility in Telangana.

4) Zomato slipped 1.02% at Rs 275 on Swiggy’s IPO move that had investors buzzing about the competitive landscape in the food delivery market.

# In the week gone by, notable gainers amongst Nifty 50 were:
JSW STEEL +3.22%
INFOSYS 0.60%
TECH MAHINDRA +0.45%
TATA STEEL +0.12%
HINDALCO 0.10%

# And the losers were:
RELIANCE (RIL) (-9.15%)
SHRIRAM FINANCE (-7.86%)
AXIS BANK (-7.44%)
BPCL (-7.36%)
HEROMOTO CORP (-7.33%)

 

# Now, before we end, some good news:

The US added far more jobs than expected in September.

Friday’s US jobs report far exceeded expectations, with the US economy adding 254,000 jobs and the unemployment rate dropping to 4.1%.

The street is now hoping for a follow-up jumbo rate cut from the Federal Reserve.

Bottom-line: Bets seen increasing that the Reserve Bank of India (RBI) could take over the theme of slashing interest rates from the Federal Reserve.

So, all bullish eyes on RBI policy meet outcome to be wired on October 9th.

5) ITD Cementation zoomed 19% higher after the company secured a new contract to construct a multi-story commercial building in Uttar Pradesh. The contract is valued at approximately Rs 1,937 crore, inclusive of taxes and duties.

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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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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.

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