The domestic stock market could not sustain the momentum after closing strongly on Friday as the benchmarks Nifty50 and Sensex fell over one percent on Monday. Amid weak global cues, the broader Nifty50 fell below 16,900 to end at 16,887.35 a cut of 1.21%, while the 30-share Sensex shed 638 points or 1.11 % to settle at 56,788.81.
Following the profit booking in benchmark indices, Nifty Midcap and smallcap ended lower by 1.25% and 0.66% respectively.
Sectorally, Nifty Pharma and healthcare were the top performers as the former closed higher by 1.11% and the latter gained 0.83%, while the rest of the sectors slipped into the red. Banks, autos and metals fell further on Monday.
“Global markets are expected to remain under pressure due to the confluence of an unfavorable economic outlook and investor risk aversion. Global markets were in pain as economic data was expected to decline as indicated high-frequency indicators in European regions such as the UK PMI. below 50, showing a contraction in the economy. As demand slowed, India’s manufacturing PMI eased slightly to to 55.1 in Sep. As a result, all key sectors came under selling pressure except pharma and oil stocks,” said Vinod Nair, head of research at Geojit Financial Services.
Here are the important things to know before the market opens on Tuesday, October 4, 2022.
Ingenious support and resistance
The Nifty stopped buying on October 3, after forming a bullish outer bar and an Engulfing bull candle on September 30. It witnessed bearish pressure throughout the day and eventually formed an inside bar pattern on the daily chart. As for the Fibonacci retracement, it retraced almost 78.6% of Friday’s rally where the key Fibonacci level acted as support near 16840. The weekly chart shows that the index has returned to down to retest your key weekly moving averages. The overall structure shows that the index has entered a short-term consolidation mode and a consolidation near 16800-17200 can be seen. The internal structure shows that a move towards the upper end of the range is likely in the coming sessions. –Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan for BNP Paribas
Bank Nifty Support and Resistance
The Bank nifty started the week with a sharp correction and is facing strong upside resistance at 38,500 level where aggressive call writing has been seen. The next support in the index is at 37500 and if it is breached on a closing basis, it will exacerbate selling. The index is likely to witness volatility throughout the week and once should play with proper risk management on both sides: Kunal Shah, senior technical and derivatives analyst at LKP Securities.
Mahanagar Gas hikes CNG and PNG prices in Mumbai
Mumbai city gas company Mahanagar Gas has increased the retail price of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by Rs 6/kg and Rs 4/SCM respectively in the megalopolis and its surroundings from Monday at midnight.
Accordingly, the revised CNG retail price will be Rs86/kg and the domestic PNG will be Rs52.50/SCM, MGL said in a statement on Monday evening.
The rupee depreciates by 42 paise on October 3
The rupee fell 42 paise to close at 81.82 against the US dollar on Monday, snapping its two-session winning streak, as strong selling in domestic stocks and a rise in crude oil prices weighed on the local unit Also, a stronger greenback against major rivals and weak macro data pressured the domestic currency, currency traders said. In the interbank foreign exchange market, the local currency opened weak at 81.65, and fell further to 81.98 against the US currency.
It finally ended at 81.82, 42 paise below its previous close. In the previous session, the rupee stood at 81.40 against the greenback.
India’s manufacturing PMI falls to 55.1 in September
India’s manufacturing PMI fell to 55.1 in September, missing estimates of 55.80 and the previous month’s reading of 56.2. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) indicated a sharp improvement in the health of India’s manufacturing industry as companies increased output along with a sustained increase in new job additions .
FIIs turn buyers into the cash market
Foreign institutional investors (FIIs) were net buyers in the capital market on Monday as they bought shares worth Rs 590.58 crore, according to exchange data. After infusing funds in the past two months, foreign investors turned sellers again in September, pulling Rs 7.6 billion out of Indian stock markets amid a misguided stance by the US Fed and sharp depreciation of the rupee
Bulk offer on October 4th
Prithvi Finmart Private Ltd bought 2,36,097 shares of Alp Industries at a price of Rs 2.54. Nirzar Enterprises sold 4,45,000 shares of Ansal Housing and Constriction at Rs 4.86 each. Topgain Finance Private Ltd bought 56,48,872 shares of Excel Realty N Infra Ltd at Rs 0.67 per share. Ashika Global bought 1,08,000 shares of Associate Alcohol and Breweries at Rs 513.25 per share.
(Disclaimer: The opinions/suggestions/advice expressed herein in this article are solely those of investment experts. Zee Business suggests its readers to consult their investment advisors before taking any financial decisions.)
