Indices Slide as Caution Reigns

Market Synopsis:
The Nifty 50 index experienced a modest decline of 0.2% this week, suggesting a possible easing of selling pressure following a period of significant weakness in previous sessions. This could be a sign for bullish investors, suggesting that a corrective phase may be on the horizon. On October 11, both the Sensex and Nifty closed in the red, with the Sensex down 0.4% and the Nifty down 0.2%. Investor sentiment has soured recently due to several factors, including significant sell-offs by Foreign Institutional Investors (FIIs), weak earnings forecasts for Q2 FY25, and escalating geopolitical tensions that have created uncertainty in the market.
Additionally, attractive valuations in other markets, particularly within Chinese stocks, may lead to further selling pressure from FIIs in India, as they seek better opportunities elsewhere amid elevated valuations in the Indian market. This combination of factors underscores a cautious outlook as investors navigate through these turbulent conditions, keeping an eye on potential recovery signals while remaining vigilant about external influences.

Top Performing Sector:
Nifty Pharma (+2.11%)

Worst Performing Sector:
 Nifty FMCG (-2.05%)

Top Gainers:
Divis Labs (13.11%)
Bandhan Bank (12.52%)
Trent (11.99%)

Top Losers:
M&MFinancial (11.85%)
Shree Cements (7.32%)
J.K. Cement (7.16%)

Major Market Developments:
● Bandhan Bank shares surged over 7% after the Reserve Bank of India (RBI) cleared
Partha Pratim Sengupta, to become the new MD and CEO.
● The S&P500 and DOW reached record highs, driven by unexpected strong bank
earnings.
● SIP flows breach Rs. 24,000 crore mark for the first time in September.
● The Indian rupee has weakened past the 84 mark against the US dollar for the first time,
reaching a low of 84.05 on October 11, 2024.
● The broader indices continue to outperform, with over 50 small-cap stocks rising
between 10% and 28%.

FII, DII Activity:
07/10/24, Monday
FII- (8293.41)
DII- 13245.12

08/10/24, Tuesday
FII- (5729.60)
DII- 7000.68

09/10/24, Wednesday
FII- (4562.71)
DII- 3508.61

10/10/24, Thursday
FII- (4926.61)
DII- 3878.33

11/10/24, Friday
FII- (4162.66)
DII- 3730.87

Technical analysis:
This week, Nifty50 opened at 25,075, remaining range-bound due to global uncertainties like the US Fed’s rate hike and geopolitical tensions. Despite an attempt to break past 25,433, selling pressure in heavyweight sectors kept it below the resistance at 25,650. The market found support at 24,950, closing the week with little movement.
The 10-day moving average (DMA) stood at 24,900, while the RSI (14) at 66.72 indicated a mildly bullish sentiment. High-volume buying could push the market upward toward resistance next week.