Nifty Index opened positive above 25k marks but witnessed a steep sell off in the first hour. It was followed by the domino effect throughout the session and dropped by 300 points from its high. It gave a breakdown of the head and shoulder pattern on daily frame and closed with losses of around 220 points. It formed a bearish candle on daily frame and has been making lower lows from the last three sessions.
Now till it holds below 24,850 zones, weakness could be seen towards 24,650 and 24,500 zones while hurdles are placed at 24,850 and then 25,000 zones.
On the option front, Maximum Call OI is at 25,000 then 26,000 strike, while Maximum Put OI is at 23,500 then 24,000 strike. Call writing is seen at 25,000, then 26,000 strikes, while Put writing is seen at 23,500, then 24,800 strike. Option data suggests a broader trading range in between 24,300 to 25,300 zones while an immediate range between 24,500 and 25,000 levels.
The Bank Nifty Index opened on a flattish note but failed to hold 51,700 zones and remained under selling pressure throughout the session as the index drifted lower towards 51,150 marks.
It formed a Bearish candle on a daily scale and negated the formation of higher lows of the last four sessions. Index again got stuck in a wider range and now till it holds below 51,650 zones, some weakness could be seen towards 51,000 then 50,500 levels, while on the upside, it is seen at 51,500 then 51,750 zones.
The Fin Nifty Index opened on a positive note but witnessed a sharp corrective move in the first half of the session as it tested the 23,500 zone. Post the selling in the first half of the session, it consolidated in a range and closed almost near day’s low.
It formed a bearish candle on the daily scale and closed below the 50 DEMA, but held above the 100 DEMA. Now, till it holds below 23,750 zones, some weakness could be seen towards 23,450, then 23,250 levels, while on the upside hurdle is seen at 23,750, then 23,850 zones.
Nifty futures closed negative with losses of 0.81 per cent at 24,845 levels. Positive setup in Mphasis, Nationalum, INFY, Techm, SBIN, Coforge and Hcltech while weakness in Bajaj Auto, Havells, BHEL, Tatacomm, RBL Bank, AB Capital, Heromotoco, Nestle Ind, Colpal, GMR Infra, Ambuja Cement, Jindalstel, M&MFin, Ultracemco, Aartiind, Maruti, PNB, Lichsgfin, Ashokley and IGL.
LARSEN - TECHNICAL CALL OF THE DAY
Stock has taken support near 200 DEMA and it has also given a range breakout on daily scale with noticeable volumes, which may support the ongoing bullish momentum.
The MACD Indicator is on the verge of giving a bullish crossover, which could support the upward momentum.
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Top 5 Stocks To Watch Out For October 18
Infosys:
Infosys delivered broad based growth performance with USD 4,894 million in Q2FY25 revenues, a QoQ growth of 3.1 per cent and YoY growth of 3.3 per cent in constant currency. Operating margin for Q2FY25 was at 21.1per cent . Free cash flow for Q2FY25 was at USD 839 million, growing 25.2 per cent YoY. TCV of large deal wins was USD 2.4 billion, 41 per cent being net new.
In terms of guidance, the company has now increased its revenue growth guidance from 3-4 per cent earlier to 3.75-4.5 per cent with operating margin at similar levels of 20-22 per cent for FY25.
Wipro:
Wipro posted a 6.2 per cent QoQ rise in its net profit to Rs 3,227 crore in Q2FY25, which is higher than the consensus estimate of Rs 3,009 crore. Further, Wipro has tapered its guidance for the next quarter to (-) 2.0 per cent to 0.0per cent in CC terms, while it had guided in the range of -1 to 1 per cent for Q2FY25 previously.
Wipro continued to expand its top accounts, large deal bookings surpassed USD 1 billion once again, and Capco maintained its momentum for another consecutive quarter.
Further, the board has also announced bonus issue in the ratio of 1:1.
Axis Bank:
The Bank’s Net Interest Income (NII) grew 9per cent YoY to Rs 13,483 crore with Net Interest Margin (NIM) for Q2FY25 coming at 3.99 per cent . The Bank’s balance sheet grew 12per cent YoY and stood at Rs 15,05,658 crore as on 30th September 2024. The total deposits grew 14 per cent YoY on month end basis, of which current account deposits grew 8 per cent YoY and saving account deposits grew 2 per cent YoY.
In terms of asset quality, Bank’s reported Gross NPA and Net NPA levels were 1.44 per cent and 0.34per cent respectively as against 1.54 per cent and 0.34per cent as on 30th June 2024.
If we analyse the numbers, Bank’s loan growth is the lowest in 12 quarters YoY; NIM at 8 quarter low; core operating profits decline QoQ, first time in 5 quarters.
Sterlite Technologies:
The company has achieved a significant advancement in the cost and performance of Fibre Optic Sensing (FOS) technology. With this advancement, Sterlite Tech’s FOS solution now embeds its advanced AI models in the Nvidia Jetson series modules offering superior performance, power and cost in fibre optic sensing.
Marico:
The company has incorporated a wholly-owned subsidiary “Cocosecrets Consumer Care LLC” in the State of Delaware, USA. Cocosecrets is in the FMCG and Consumer Products industry and the objective behind this incorporation was to carry on the business of FMCG and Consumer products and leverage business opportunities in USA and other international geographies.
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