Market Today: HUL Q2, Gold at record, IMF on India, Waaree IPO last day

Stock Market Today, October 23, 2024: After a major decline in the previous trading session, Indian benchmark indices—Nifty50 and Sensex—are likely to continue this downward trend today, as indicated by GIFT Nifty, which shows a slightly negative start for the markets.

At 6:35 AM, GIFT Nifty Futures were down by just 2 points, trading at 24,536.

Previous session highlights 

Benchmarks BSE Sensex and NSE Nifty 50 bled and closed in the red, with each falling over 1 per cent. The BSE Sensex plunged by 930.55 points, or 1.15 per cent, settling at 80,220.72. The NSE Nifty 50 ended at 24,472.10, down 309 points, or 1.25 per cent.

The market yesterday was dominated by bears, with 47 out of 50 Nifty 50 stocks closing lower. Key stocks such as Bharat Electronics, Mahindra & Mahindra, Adani Enterprises, Coal India, and State Bank of India saw losses of up to 3.79 per cent. Only a few, including ICICI Bank, Nestle India, and Infosys, managed to gain, with increases up to 0.74 per cent.

Smallcap stocks were particularly affected, with the Nifty Smallcap 100 index dropping 3.92 per cent, and the Nifty Midcap 100 also ending down by 2.61 per cent. Among sectoral indices, the Nifty PSU Bank index experienced the steepest decline, falling by 4.18 per cent.

Also Read: Markets log worst 1-day fall in 3 weeks amid FPI exit; Sensex falls 931 pts

Key market drivers today

IMF retains India's GDP growth forecast

The International Monetary Fund (IMF) on Tuesday kept its growth forecasts for India unchanged at 7 per cent and 6.5 per cent for FY25 and FY26, respectively. It held that pent up demand accumulated during the pandemic has been exhausted as the economy “reconnects” with its potential growth. READ MORE

Sebi introduces framework on intermediaries & unauthorised advisors
 

Markets regulator Sebi on Tuesday came out with a framework on associations between market intermediaries and unauthorised financial advisors, especially with regard to specified digital platforms. READ MORE

Also Read: F&O cannot be a national pastime: Sebi whole-time member Ashwani Bhatia

Institutional activity
 

On October 22, foreign institutional investors continued their selling spree, offloading shares worth Rs 3,978.61 crore, while domestic institutional investors bought shares totaling Rs 5,869.06 crore.

  

Q2 earnings
 

Investors will react to Q2 results from companies such as Zomato, Paytm, Adani Green, Bajaj Finance, Indus Towers, and M&M Financial Services. 

Other major earnings reports expected include Hindustan Unilever, Bajaj Finserv, SBI Life Insurance, and several others.

Asia-Pacific markets
 

The Asia-Pacific markets displayed mixed results, following Wall Street trends. Japan’s Nikkei saw a slight decline, while Australia’s ASX200 rose by 0.19 per cent.

US market watch
 

Wall Street had a volatile session, with the Dow Jones Industrial Average slipping 0.02 per cent, the S&P 500 down 0.05 per cent, and the Nasdaq Composite gaining 0.18 per cent. The 10-year Treasury yield rose above 4.2 per cent, adding pressure to stocks due to robust economic data and deficit concerns, despite a recent rate cut by the Federal Reserve.

Gold at record

Gold reached an all-time high on Tuesday, driven by safe-haven demand amid uncertainties surrounding the U.S. elections and ongoing Middle East tensions. Spot gold climbed 0.7 per cent to $2,739.81 per ounce, after hitting a record $2,744.08 earlier.

IPO corner
 

Waaree Energies Limited IPO (Mainline), Deepak Builders & Engineers India Limited IPO (Mainline), and Premium Plast Limited IPO (SME) will enter the last day of their subscription.

Godavari Biorefineries IPO (Mainline) will open for susbcription today while Lakshya Powertech Limited's IPO (SME) will debut today.

Additionally, Danish Power Limited IPO (SME), United Heat Transfer Limited IPO (SME), and OBSC Perfection Limited IPO (SME) will see their second day of subscription.

Oil prices
 

US crude oil futures continued to rise, gaining nearly 2 per cent in the previous session. Oil prices have bounced back from recent declines, with traders reassessing the likelihood of supply disruptions in the Middle East due to ongoing tensions. West Texas Intermediate crude for November delivery was up $1.53, or 2.17 per cent, at $72.09 per barrel, while Brent crude for December delivery rose $1.75, or 2.36 per cent, to $76.04 per barrel.

Here's how analysts are assessing today's (October 23) trading session:

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd

The index is currently placed near 100-Days Exponential Moving Average (100-DEMA) support which is placed near 24485. If Nifty sustains below 24,440, then the index could drift toward the 24,200-24,000 levels. On the upside, the previous support level of 24,700 will now act as an immediate resistance for the index.

Shrikant Chouhan, Head of Equity Research, Kotak Securities
 

We are of the view that, as long as the index is trading below 24600/80500 the weak sentiment is likely to continue. On the down side market could continue the correction wave till 24350-24250/79800-79500. On the flip side, above 24600/80500 the pullback formation is likely to continue till 24700-24725/80800-81000. Short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels.

Rupak De, Senior Technical Analyst, LKP Securities
 

The Nifty slipped from the head and shoulder pattern on the daily timeframe, leading to a sharp fall during the day. Sentiment further weakened after the Nifty broke below the crucial support level of 24,700. The sentiment may remain weak as long as the index stays below 24,700, with a "sell on rise" strategy favored by market participants. The index has fallen below the 100 EMA for the first time since early June of this year. On the lower end, support is placed at 24,400, and if the index falls below this level, it may extend its correction towards 24,000.