Has Nifty Bottomed Out?

The truncated week saw absolute carnage on the street due to heavy FII selling with various market indices, including the Nifty 50, S&P BSE Smallcap, and Nifty Midcap succumbing to the prevailing bearish sentiment. Several factors have played a role in this downturn. Firstly, the strengthening of the US dollar has exerted pressure on the emerging markets. Additionally, the news of the Israel-Hamas conflict has further weighed on the already vulnerable markets.

However, the short covering rally on Friday calmed some nerves, giving a ray of hope to the bulls. As we look ahead, the financial markets are anticipated to face a substantial test of their resilience, given the multitude of challenges currently in play.

Nifty ended the week 2.53% lower at 19,050. Nifty Media and Nifty Metal bled the most with 6.27% and 5.15% respectively.

Scroll down to understand more of such market news and perspectives for the week gone by in easily understandable charts.

Indices

The chart below shows the returns from the 1st day of Navratri to Muhurat day trading day for the last 10 years for Nifty 50.

The chart below shows the returns from the 1st day of Navratri to Muhurat day trading day for the last 10 years for Nifty Auto.

The chart below shows the returns from the 1st day of Navratri to Muhurat day trading day for the last 10 years for Nifty Infrastructure.

Here’s why Sensex stocks will outperform smallcap stocks!

The below chart shows why there is a limited scope for small caps to outperform now.

SME IPO Stocks indicate a slowdown in momentum.

Stocks

Maruti Suzuki hits record high, thanks to the stellar Q2FY24 performance!

Here are the 3 Stocks that have always generated positive returns in the past 10 years from the 1st day of Navratri to Muhurat day trading day.

EV Player- Sona Comstar Posts Stellar Q2 Performance!

Axis Bank Reports A Steady Q2: NIM Trajectory Is A Key Positive!

ICICI Bank Reports Well-Rounded Q2 Results!

Equitas SFB Reported A 71% Rise in Its PAT!

Dixon Technologies in Sweet Spot!

Tech Mahindra reports bad Q2FY24 results.

Kewal Kiran Clothing’s Q2FY24 numbers impressed the markets.

Laurus Labs Ltd declared its results for Q2FY24, here’s how the quarter went:

Finolex Industries reported a poor set of Q2FY24 numbers impacting its share price.

The below chart shows the financial performance of Amber Enterprises in Q2FY24.

Here’s how Mahindra Logistics performed during Q2FY24!

The following chart depicts the Q2FY24 performance of Torrent Pharma.

The below chart discloses the quarterly results of Jubilant Foodworks for Q2FY24.

Economy

In a first since Dec’22-Feb’23, Foreign Institutional Investors have withdrawn money on a weekly basis from the Indian markets for 7 successive weeks.

Opportunities

IPCALAB gave a breakout and retest on the daily chart. Short covering at 1000 Strike is likely to drive further rally.

Ride Bullish Flag Pattern in DRREDDY

Bearish Tide Hits Defence Stocks

Derivatives

The FPI Long Short Ratio stood at 10.88% and the PCR closed at 0.63, both are at the lowest point in the current financial year.

The FPI Long Short ratio slumped to a low of 10.88% on the last day of October Series Expiry as the FPIs continued to aggressively build short positions in Index futures

The India VIX cooled down initially falling from 12.82 on 28th September to 10.90 on 23rd October before rising sharply to close at 11.73 on 26th October, giving discomfort to the bulls.

Nifty fell 3.42% in the October Series Expiry while the Open Interest (OI) saw a sharp rise of nearly 11%, indicating a buildup of short positions in Index futures.

Food For Thought

Image Source: @mkt_sentiment (Twitter)