Stock Market News Today – 10/11/2023

Nifty formed a negative candle on the daily time frame following back-to-back Doji like candle formation indicating indecisiveness amongst the bulls and the bears. Though Nifty has been able to scale and is still sustaining above the short-term average of 21-day EMA but 50 & 100 possess challenges for Nifty around the level of 19450-19600 range.

Benchmark indices ended on a negative note in the volatile session on November 9 with Nifty at 19,400.

Mixed trend seen on the sectoral front with realty and auto indices up 1 percent each, while Oil & Gas, FMCG, Information Technology indices down 0.5 percent each. BSE Midcap index ended on a flat note, while Smallcap index down 0.25 percent.

Technical Analysis:

Nifty formed a bearish candle on the daily time frame following back-to-back Doji like candle formation indicating indecisiveness amongst the bulls and the bears. Though Nifty has been able to scale and is still sustaining above the short term average of 21-day EMA but 50 & 100 possess challenges for Nifty around the level of 19450-19600 range. 

Technical Indicator ‘Bollinger Band’ expanding too indicates that the rally in the market is most likely to witness an extension. Now the index is set to scale the 50-EMA presently placed at 19450, sustained close above the said level can extend the Index rally towards 19600 in the coming weeks as it is placement of resistance

trend line drawn adjoining Sep-Oct highs. Hence, buy on dips would be the prudent strategy to adopt. 

However, if Index fails to do so then bearish Flag pattern might be underway and downside zone of 19050-19000 will act as immediate support for the index. Any sustainable move below the level of 19000 will lead to resumption of its southward journey. 

Option Activity:

On the option front, maximum Put OI is at 19400 followed by 19300 strike, while maximum Call OI is at 19400 followed by 19500 strike. Call writing was seen at 19400 strike, followed by 20400 strike while Put writing was seen at 19400 strike, followed by 19200 strike.

Stocks on the radar

• ICICI Bank: The country’s second largest private sector lender has received approval from Reserve Bank of India for making ICICI Securities a wholly owned subsidiary, subject to certain conditions. The bank has proposed to delist equity shares of ICICI Securities, pursuant to a scheme of arrangement.
• Zee Entertainment Enterprises: The media and entertainment company has recorded consolidated profit at Rs 123 crore for quarter ended September FY24, rising 9 percent despite strong topline growth, impacted by weak operating margin. Consolidated revenue from operations grew by 20.5 percent to Rs 2,437.8 crore compared to year-ago period, driven by subscription and other sales & services.
• AstraZeneca Pharma: The pharma company has registered a massive 60.8 percent on-year growth in profit at Rs 52.4 crore for quarter ended September FY24, driven by exceptional gain and higher topline. Revenue from operations increased by 31.7 percent to Rs 311 crore compared to corresponding period last fiscal.
• Aurobindo Pharma: The pharma firm has recorded a massive 85 percent year-on-year growth in consolidated profit at Rs 757.2 crore for July-September period of FY24, driven by robust operating numbers, and topline. Revenue from operations grew by 25.8 percent YoY to Rs 7,219.4 crore with US formulations (excluding Puerto Rico) rising 35.7 percent, Europe formulation up 16.7 percent, and growth markets revenue up 24.7 percent
• ESAF Small Finance Bank: The small finance bank will list shares on the bourses on November 10. The final issue price has been fixed at Rs 60 per share. The date of allotment of shares was November 9.

US Markets

The S&P 500 fell on November 9, ending an eight-day winning streak, as a sharp jump in yields rattled investors. The benchmark index declined 0.81 percent, closing at 4,347.35, while the Nasdaq Composite lost 0.94 percent and settled at 13,521.45. The Dow Jones Industrial Average dropped 220.33 points, or 0.65 percent, to close at 33,891.94.

European Markets

European markets closed higher Thursday as momentum in markets picked up on the back of robust corporate earnings. The pan-European Stoxx 600 was up 0.8 percent by the close, having reversed opening losses. Industrials added 2.5 percent to lead gains while travel and leisure stocks dropped 2 percent.

Bulk Deals

• Aegis Logistics Ltd : Smallcapworld Fund Inc sold 1826245 shares at Rs 294.
• Orient Green Power: Axis Trustee Services Limited sold 1,00,00,000 shares at Rs 17.43
• Plaza Wires Limited: Chanakya Opportunities Fund I sold 925000 shares at Rs 117.48 
• Kavveri Telecom Products: General Insurance Corporation Of India sold 197344 shares at Rs 10.84

Moody’s upgrades Tata Motors’, JLR ratings to Ba3; outlook remains positive

Ratings agency Moody’s on November 9 upgraded Tata Motors Limited’s corporate family rating (CFR) to Ba3 from B1. Concurrently, Moody’s has also upgraded Tata Motors senior unsecured instruments ratings to Ba3 from B1. It has maintained a positive outlook on all ratings.

As per the statement, Moody’s also upgraded Jaguar Land Rover (JLR) corporate family rating (CFR) to Ba3 from B1 and the probability of default rating (PDR) to Ba3-PD from B1-PD. It has upgraded JLR’s backed senior unsecured global notes to Ba3 from B1. The outlook on all ratings remains positive.

FIIs and DIIs

Foreign institutional investors offloaded shares worth Rs 1,712.33 crore, while domestic institutional investors bought Rs 1,512.14 crore worth of stocks on November 9, provisional data from the National Stock Exchange showed.

Stock under F&O ban on NSE

The NSE has added Chambal Fertilisers and Chemicals, and MCX India to its F&O ban list for November 10, while retaining Delta Corp and GNFC (Gujarat Narmada Valley Fertilizers and Chemicals) in the said list. Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Disclaimer:

The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk.

Please consult with a financial advisor before making any investment decisions.