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Time for some reversal or more fall ahead?

Good Morning Everyone, Nifty yesterday opened with a small gap up at 18382 and went on a continuous fall till 18048, and then then came in some last hour buying by DIIs at that level and we could see the Nifty closing higher than the day's low at 18266.

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On the daily chart, the Nifty has formed a bearish candle with a positive bias, which could mean that the bulls are getting more active at 18000 levels, which could mean that this could be a point for reversal unless that bears get strong and take the Nifty below 18000.

Now that the weekly expiry is over, we could still see some cautious moves in the market as we have the Big brother Reliance coming with the results this weekend after the market close. We also have ICICI bank coming up with results this week.

Sector Watch:

The only sector that was positive yesterday was the banking and financial sector which was majorly supported by movements in Kotak bank. Moreover, with the awesome results by HDFC bank, everyone expects the banking sectors to do well this quarter.

IT sector was the worst hit and was down by 2.53%, which might recover today is what I hope.

Top Gainers:

During such a big fall, something surprising was the rise in Kotak bank shares, up by 6.92% yesterday and is sitting at its 52 weeks high as of now, followed by our favorites, Tata Motors, Grasim & HDFC.

Top Losers:

Asian Paints on October 21 reported a 29 percent year-on-year decline in consolidated profit at Rs 605.2 crore for the quarter ended September 2021 as higher input prices dented operating income, missing analysts' expectations. The stock reacted sharply to the weak numbers, falling 4.88 percent to Rs 3015.

This was followed by some profit booking in metal and IT stocks like Hindalco & Infy, But I continue to be bullish on them as we can see this as an opportunity to accumulate them for profit in the coming days.

Reliance also was down from its 52 weeks high by 2.4% as investors are cautious before the results this weekend.

Global Markets:

Stocks closed higher on Wall Street Thursday with S&P 500 beating the record high it set in September as it rose 0.3 percent. The tech-heavy Nasdaq also rose half a percent, whereas the Dow Jones Industrial Average fell 0.1 percent.

The number of Americans applying for unemployment benefits fell last week to a new low point since the pandemic erupted, evidence that layoffs are declining as companies hold onto workers.

Unemployment claims dropped 6,000 to 290,000 last week, the third straight drop, the Labor Department said Thursday. Those are the fewest people to apply for benefits since March 14, 2020, when the pandemic intensified. Applications for jobless aid, which generally track the pace of layoffs, have fallen steadily from about 900,000 in January.

Asian shares rose Friday morning following overnight gains on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan traded flat. Japan's Nikkei index rose 0.8 percent. Chinese blue chips were also trading higher. And South Korea’s Kospi advanced marginally. Elsewhere, Australian shares slipped over 0.1 percent.

China Evergrande Group wired funds to a trustee account on Thursday for a dollar bond interest payment due September 23, a source told Reuters on Friday, days before a deadline that would have plunged the embattled developer into formal default.

Indian Market:

Trends on the SGX Nifty indicate a flat to gap up opening for Nifty today. However, I'll be watchful of the 18000 level today. Nifty has to sustain above 18000 and close higher to further strengthen the bulls in the market and get to a reversal mode.

Meanwhile, any more selling below 18000 levels can attract more bears to the market and we could see lower numbers, though the probability of going lower than 18000 seems bleak.

Shareholders of Reliance Industries have approved the appointment of Saudi Aramco Chairman Yasir Al-Rumayyan on the company board, with less than 2 percent of votes cast against the proposal. Disclosing the results of shareholder votes on the appointment, Reliance in a regulatory filing said 98.03 percent of votes were cast in favor of the resolution to appoint Al-Rumayyan for three years.

As many as 10.89 crore shares or 1.96 percent voted against the resolution, while 3.23 crore votes were declared invalid due to lack of proper authorisation, it said.

Google has invested $50-$75 million in social commerce startup Meesho. Meesho is expected to use the fresh capital to become a consumer-facing e-commerce entity that can compete effectively against dominant players Amazon India and Flipkart. Google’s investment is part of its strategy in betting big on promising Indian startups such as Dunzo and Glance. The investment is part of Meesho’s recent financing round and values the company at $4.9 billion. In September, Meesho raised $570 million from Fidelity and Eduardo Saverin’s B Capital.

Meesho raised over $900 million so far in 2021.

Results today

Reliance Industries, HDFC Life Insurance Company, Yes Bank, Apollo Pipes, Bharat Seats, Crompton Greaves Consumer Electricals, Dodla Dairy, Federal Bank, Gland Pharma, Hindustan Zinc, Inox Leisure, Jubilant Pharmova, Kajaria Ceramics, Kirloskar Ferrous Industries, Kwality Pharmaceuticals, Mahindra Holidays & Resorts India, Omkar Speciality Chemicals, Polycab India, ABB Power Products and Systems India, PVR, Steel Strips Wheels, Subros, Sundaram-Clayton, Supreme Industries, Tata Consumer Products, Tata Elxsi, and Zenotech Laboratories will release September quarter earnings on October 22.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,818.90 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 428.45 crore in the Indian equity market on October 21

Stock Specific News:

TVS Motor Co | The company's Q2 results topped estimates on all fronts.

JSW Steel | The steelmaker reported strong quarterly earnings with its net profit for the September quarter surpassing estimates. However, revenue missed expectations.

Container Corporation of India | The company posted a 41 percent surge in its Q2 net profit while revenue rose 21 percent on the year. The company's operating margin also expanded on a Year-On-Year (YoY) basis.

South Indian Bank | The lender reported a net loss in Q2 FY22 against a net profit a year ago and in the previous quarter. Even as deposits rose on a YoY basis, advances declined.

Wipro | The company got an order from National Grid for data center consolidation.

Mphasis | The company's Q2FY22 earnings came in below estimates, except for revenue.

GAIL India | The company will buy a 10 MW electrolyser, which will generate 4.5 tn of green hydrogen a day. This will be India's largest green hydrogen production plant.

Indian Hotels Co | The company's Q2 net loss narrows on a YoY basis.

Zee Entertainment Enterprises Ltd | ZEEL is ordered by the Bombay High Court to hold an extraordinary general meeting (EGM) requisitioned by its shareholders Invesco Developing Markets Fund and OFI Global China. The EGM will be chaired by a retired judge and its resolution is to be kept in abeyance till the Bombay HC decides on the legality and validity of EGM requisition, the court ruled.


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