A bearish mood was seen in the Indian stock market on Tuesday. Sensex broke 1000 points and Nifty also broke the important psychological level of 24500 points due to selling and profit booking by foreign investors. With overvaluation and continued exit of foreign funds from the Indian stock markets, the massive sell-off is estimated to be over Rs.80,000 crore so far in October. There was a big hammering.
The Sensex closed down 930 points at 80220 points, while the Nifty futures index closed down 263 points at 24525 points. While the Bank Nifty Future Index closed at the level of 51394 points with a decrease of 645 points. Counting days are now left for the completion of Vikram Samvat 2080. The Indian stock market, which has given attractive returns since the beginning of the year, has been registering a correction for the last two weeks. Investors have lost capital worth Rs 8.51 lakh crore so far this week. While in the month of October, so far there has been a gap of 25.22 lakh crores in the market.
Ahead of Diwali, investors were also seen booking profits with the tendency to sell their old goods and buy new ones in the new year. The country's top IPO of Rs 27,870 crore was listing at Rs 1,934 against the issue price of Rs 1,960 at a discount of 1.32%.
Among the top gainers in today's trade, stocks like Nestlé India, Infosys, ICICI Bank have increased. Today's list of top losers includes IndiGo, Devs Lab, Grasim, Mahindra & Mahindra, Lupine, Voltas, Adani Enterprises, Reliance, TVS Motors, Godrej Property, TCS, ACC, Torrent Pharma, Bharti Airtel, Sun Pharma, Bata India, Axis Bank, Stocks like Tata Chemicals, Tech Mahindra, Cipla, Havells, Kotak Mahindra Bank have declined. Out of a total of 4059 scrips traded on BSE, decliners were 3424 and gainers 561, while 74 scrips were unchanged. While in 594 stocks there was a bearish lower circuit of only sellers against a bullish upper circuit of only buyers in 192 stocks.
Nifty Future Technical Levels… NIFTY FUTURE CLOSE :- ( 24538 ) :- The next move is likely to see Nifty Future touch the crucial level of 24404 points first and 24373 points from 24575 points to 24606 points, 24676 points in terms of trading. Cautious positioning around 24373 points …!!
Bank Nifty Future Technical Level… Bank Nifty Future Close :- ( 51434 ) :- The next swing is likely to see the Bank Nifty Future touch the crucial level of 51088 points first and 51008 points from 51474 points to 51606 points, the all-important level of 51008 points around 51008 points cautiously. Creating a position…!!
Specific technical level regarding future stock Mahindra & Mahindra (2890) :- The share price of this leading company of Mahindra Group is currently trading around Rs.2860. Buyable with a stoploss of Rs.2844, this stock is likely to register a price of Rs.2909 to Rs.2917 in a short period of time…!! Bullish focus on Rs.2930…!! Havells India ( 1778 ):- Positive breakout around Rs.1744 as per technical chart…!! Buyable with support of Rs.1727, this stock is likely to touch Rs.1797 to Rs.1808…!! Infosys Limited ( 1836 ) :- According to the technical chart, the Computers – Software & Consulting sector sector has a profit target price of Rs.1818 to Rs.1808 with a profitable sell around Rs.1880. Consider a trading stoploss of Rs.1898..!! Voltas Limited (1793) :- This stock is sellable with a stoploss of Rs.1823 registering an overbought position around Rs.1808..!! It is likely to show the price of Rs.1770 to Rs.1744 in a phased manner…!! Consider bullish above Rs.1830…!!
Future direction of the market… Friends, as a result of sluggish demand, there is an indication from the second quarter results that the revenue growth and net profit growth of the companies has slowed down in the second quarter of the current financial year. In the analysis of the September quarter results of 167 companies, the combined net profit of these companies has increased by five percent year-on-year. The increase was only 1%, while the net profit remained stable compared to the first quarter. In the second quarter of financial year 2024, the net profit of these companies saw a strong growth of 16%. In the second quarter of the last financial year, the net profit figure of 167 companies was Rs 86388 crore, which has increased by five percent to Rs 90685 crore in this period of the current financial year. In the first quarter, this figure was Rs 87569 crore. The report also noted that net sales of companies (gross interest income in case of financial firms) grew at a modest seven per cent year-on-year.
Overall revenue stood at Rs 7.40 trillion as against Rs 6.92 trillion in the second quarter of fiscal 2024. The results of the companies in other sectors except the companies in the IT service sector are seen to be weak. Results in the banking sector have been mixed. Banks' credit growth has slowed and margins have come under pressure. Demand in FMCG, cement, retail and auto sectors has been weak.
Stock specific movement has been observed in the market as the results of the companies are showing an overall mixed trend. In the coming days, geopolitical developments, China's potential package and crude oil prices, corporate results will be watched.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
