On the day of October expiry, there was volatility in the market and in the last hour the market recovered from the lower levels and closed. However, midcap and smallcap indices closed flat. Bank Nifty closed 156 points higher. There was buying in PSU bank and metal stocks, while realty, IT and PSE indices closed with losses. At the end of trading, the Sensex closed at 84,628.16, down 150.68 points or 0.18 per cent. Nifty closed at 25,936.20, down 29.85 points or 0.11 per cent.
Is this fluctuation due to expiry or something else?
– All signs were positive for the market today.
– Yesterday Bank Nifty closed at its all-time high and Nifty closed at its highest level in one year.
– Technically, it was a very strong finale.
– Good buying was also seen in FII and domestic funds yesterday.
– Got good support from global markets.
Despite this, the market started with a dull and mild weakness.
– After a strong recovery in the first hour, the market crossed yesterday’s highest level.
– This was followed by rapid profit booking.
– This volatility is due to monthly expiry.
Will Nifty be able to close above 26,000?
Expiry above Rs 26,000 is a bit difficult.
– Highest open interest of 3.62 crore shares on 26,000 calls.
– Highest open interest of 3.03 crore shares on 25,900 puts.
– 25,900 is a key support; A move below this level may result in reduction of bullish positions and increased selling.
Which levels are important for the market?
– Nifty 25825-25900, Bank Nifty 57800-58000 support range
– Nifty 26000-26100, Bank Nifty 58300-58500 upper range
Nifty closed below 25800, Bank Nifty 57650 support range.
Nifty closed below 26000, Bank Nifty 58275 support range.
– During recovery, profit booking will be in the range of 26000-26100.
Stock market turmoil
IDBI Bank (Cash):
– Group of Ministers meeting on October 31 to invite financial bids
– After this the path for disinvestment will be cleared
– Strong rise in share prices after this news
IDFC First Bank:
– There has been a strong rise in share prices since the results.
– Signs of return to buying in mid-cap private banks
JSPL:
– A strong rise has been seen in metal stocks
– JSPL stronger than before due to today’s results
Tata Steel, SBI, LT, Titan, SBI Life, Adani Enterprises were the biggest gainers on Nifty 50. Meanwhile, ICICI Bank, Indigo, Bajaj Finserv, Bajaj Finance, JSW Steel, ONGC and Asian Paints declined.
Monday’s strong rally reflects confidence from both domestic and foreign investors. Despite marginal selling of ₹56 crore in the cash sector, foreign institutional investors (FIIs) made strong net purchases of ₹4,290 crore in derivatives and other sectors combined. Domestic institutional investors (DIIs) also continued buying for the 42nd consecutive day and invested around ₹2,500 crore in the market.
Today (Tuesday, October 28) global cues look strong for the market. Hopes of a trade deal with China lifted US markets to new all-time highs. The Dow jumped nearly 350 points, the Nasdaq jumped 400 points to close at an all-time high, while the S&P 500 set a new record for the 35th time this year. Nifty was trading near 26,050, up 50 points. Dow futures remained steady ahead of the Fed meeting. Meanwhile, the Nikkei in Asia fell nearly 100 points.