Will Nifty reverse today after the continuous fall last week?

Good Morning, Everyone, The Nifty was in a correction mode last week and went down from the weekly high of 18600 to finally close the week at 18114. The major drag was from the IT and FMCG sector but the banks held the market strongly with support from HDFC results.

On the daily chart, the Nifty formed a bearish candle with an indecisive pattern as shown below.

Reliance and ICIC Bank came with great results and beat the street estimates, which were announced after the market closed on Friday, so we could see the action of that in the market today.

Global Markets:

Last Friday, Wall Street ended a volatile session on a mixed note, the S&P 500 and Nasdaq Composite indices declined 0.1 percent and 0.8 percent respectively, whereas the Dow Jones rose 0.2 percent.

Equities in other Asian markets were largely lower today, ahead of a week packed with major quarterly earnings announcements. MSCI's broadest index of Asia Pacific shares outside Japan was last seen trading 0.2 percent lower. Japan's Nikkei 225 index was down one percent.

S&P 500 E-Mini futures were down 0.1 percent in early Asian trade, hinting at a sluggish start in the US on Monday.

Shares in China Evergrande Group shot up 4% on Monday after the embattled property developer announced plans to prioritise the growth of its electric vehicles business over its core real estate operations.

China Evergrande New Energy Vehicle Group Ltd stock jumped as much as 17%, versus a 0.3% fall in the Heng Seng Index. Evergrande chairman Hui Ka Yan said late on Friday that the company would aim to make its new electric vehicle venture its primary business, instead of property, within 10 years.

Indian Market:

Trends on the SGX Nifty, Indicate a flat to small gap up opening in Nifty today, however, I will keep a close watch on how the market reacts to spectacular results from Reliance and ICICI Bank, as this might decide the reversal for Nifty.

Until the Nifty 50 index makes a decisive directional move, members are advised to maintain a cautious outlook and avoid venturing into aggressive bets.

RBI remains laser-focused to bring back inflation to 4%: Governor Shaktikanta Das

The Reserve Bank remains laser-focused to bring back retail inflation to 4 percent over a period of time in a non-disruptive manner, Governor Shaktikanta Das stressed while voting for the status quo in interest rates, as per minutes of the October policy meeting released on Friday.

The central bank has been mandated by the government to ensure the Consumer Price Index (CPI) based inflation is at 4 percent, with a band of 2 percent on either side. The retail inflation, which was above 6 percent during May and June, has started moving down and stood at 4.35 percent in September.

Results today

Tech Mahindra, HDFC Asset Management Company, Aditya Birla Sun Life AMC, ANG Lifesciences India, Aurionpro Solutions, Ceat, Coforge, Colgate-Palmolive (India), CSB Bank, Dwarikesh Sugar Industries, Gujarat Mineral Development Corporation, Goodluck India, Home First Finance Company India, ICRA, Indus Towers, Jagran Prakashan, Kansai Nerolac Paints, Karda Constructions, LKP Securities, Maharashtra Scooters, Mangalam Organics, Newgen Software Technologies, Orient Cement, Prakash Industries, Quick Heal Technologies, Ramco Cements, Shriram Asset Management, SRF, Suven Life Sciences, and Welcure Drugs & Pharmaceuticals.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,697.70 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,029.97 crore in the Indian equity market on October 22

Stock Specific News:

Reliance Industries | RIL's net profit and revenue for the September quarter were much higher than the estimates.

ICICI Bank | The lender reported a higher-than-expected net profit for the quarter ended September.

Tata Consumer Products | The company's net profit for Q2 FY22 was below expectations.

Tata Elxsi | The company's profit came in at Rs 125.33 crore in Q2FY22 as compared to Rs 78.87 crore in Q2FY21.

Apollo Tyres | The company has introduced its European tyre brand Vredestein in the country to cater to premium cars and superbike segments.

Asian Paints | A whistle-blower has flagged off related party transactions carried out by the promoters of the paint maker that allegedly benefited them at the cost of the company’s shareholders, a report said.

ABB Power Products and Systems India | The company reported a sharply higher profit at Rs 34.3 crore in Q2CY21 against Rs 4.8 crore in Q3CY20.

Hindustan Zinc | The metal manufacturer posted a near 4 percent rise in its net profit for the September quarter on the back of higher revenue from operations.

Tatva Chintan Pharma Chem, Vimta Labs and Orient Electric | These companies have reported strong quarterly results over the weekend.


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