Market Today: TCS Q2 nos, NSE weekly options changes, Oil gains, Israel war

Stock Market Today, October 11, 2024: Indian equity indices, Nifty50 and BSE Sensex, may start in the negative territory, mainly influenced by mixed cues. 

At 6:30 AM, GIFT Nifty Futures were trading 39 points lower at 25,079 levels, indicating a weak start for the Indian bourses. 

NSE derivatives changes
 

Back home, investors will be reacting to the announcement from the National Stock Exchange (NSE). Starting November 13, 18, and 19, the NSE will discontinue weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services, respectively, retaining only the Nifty 50 for weekly derivatives trading.

Tata Group Co Q2 results update

Additionally, Tata Consultancy Services (TCS) will also be in focus as it reported a moderate performance for Q2 of FY25. The company posted a net profit of Rs 11,909 crore, a 5 per cent increase year-on-year, but a slight decline of 1.08 per cent from the previous quarter. Revenue rose 7.6 per cent year-on-year to Rs 64,259 crore, with a 2.62 per cent sequential increase.

Tata Elxsi, an engineering and technology services firm, reported a 14.7 per cent increase in its second-quarter profit, surpassing market expectations, driven by strong demand in its transportation division. For the quarter ending September 30, the company's net profit rose to Rs 229 crore, up from last year. Analysts had anticipated a profit of Rs 205 crore, according to LSEG data. Revenue from operations grew 8.3 per cent to Rs 955 crore, closely aligning with analysts' projections of Rs 956 crore.

Wall Street update

In the US, all three major indices closed lower as investors reacted to higher-than-expected inflation and unemployment claims. The Consumer Price Index rose 0.2 per cent monthly and 2.4 per cent annually, slightly above economists' estimates. 

On the other hand, jobless claims increased to 258,000, exceeding the forecast of 230,000. 

Thus, the Dow Jones fell 0.14 per cent, the S&P 500 dropped 0.21 per cent, and the Nasdaq declined by 0.05 per cent. 

Attention now shifts to PPI and core PPI figures for September and third-quarter of calendar year 2024 (Q3CY24) earnings.

Geopolitical woes continue 

Gulf states are lobbying the US to prevent Israel from attacking Iran's oil facilities, concerned that their own installations could be targeted if tensions escalate, according to Reuters. Earlier, Israel had vowed retaliation against Iran for a recent missile attack, heightening fears of a broader conflict.
 

Asian markets

In the Asia region, markets opened mostly higher, diverging from Wall Street's performance. 

Japan's Nikkei 225 rose 0.3 per cent, while South Korea's Kospi gained 0.8 per cent. Australia's S&P/ASX 200, bucking the trend, dipped 0.19 per cent.

Markets in Hong Kong remain closed today on account of the Chung Yeung festival.

Additionally, the Bank of Korea reduced its base rate by 25 basis points to 3.25 per cent during its October meeting, marking the first cut since May 2020, as anticipated. The decision follows a trend of easing inflation, with September’s rate slowing to 1.6 per cent, the lowest level since February 2021, and representing the third consecutive month of decline.

Oil and Gold prices 

Oil prices surged approximately 4 per cent on Thursday, driven by increased US fuel consumption ahead of Hurricane Milton's impact on Florida, concerns over Middle East supply disruptions, and indications of rising energy demand in the US and China. 

Brent crude futures climbed by $2.82, or 3.7 per cent, to settle at $79.40 per barrel, while US West Texas Intermediate (WTI) crude rose $2.61, or 3.6 per cent, to close at $75.85.

Meanwhile, gold prices continued to rise as traders anticipated a possible interest rate cut by the Federal Reserve next month, following recent US economic data. 

Spot gold increased 0.6 per cent to $2,623.58 per ounce, poised to end a six-session losing streak. US gold futures also rose, settling 0.5 per cent higher at $2,639.30.

Other market triggers

Back home, investors will track forex reserves for the week-ending October 04, coupled with manufacturing and Industrial production figures for August.

Also Read: Direct payout of securities: Sebi extends deadline to November 11

Q2 earnings today
 

Just Dial, Hathway Cable and Plastiblends among 6 others to report Q2 earnings today.

IPO corner

Khyati Global Ventures Limited IPO (SME) will list on the bourses today, while Pranik Logistics Limited IPO (SME) will enter its second day of subscription.

Market activity recap

On October 10, foreign institutional investors (FIIs) sold shares worth Rs 4,926.61 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 3,878.33 crore.

Previous session highlights
 

On Thursday, October 10, both BSE Sensex and NSE Nifty50 ended positively. The Sensex gained 140.75 points (0.17 per cent) to close at 81,607.55, while the Nifty50 increased 16.50 points (0.07 per cent) to settle at 24,998.45. 

In the broader market, the Nifty Smallcap 100 rose 0.19 per cent, whereas the Nifty Midcap 100 fell 0.28 per cent. Bank Nifty and PSU Bank indices outperformed, gaining over 1 per cent each.

Here's how analysts are assessing today's (October 11) trading session:

Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Broking & Distribution, MOFSL

Volatility has been slightly on the rise from the last three sessions which is causing a bumpy ride on the upside direction. On option front, data suggests a broader trading range in between 23,200 to 24,000 zones while an immediate range between 23,400 to 23,700 levels.

Shrikant Chouhan, Head of Equity Research, Kotak Securities

The current market texture is non-directional perhaps traders are waiting for either side breakout. For the  traders now, 25,130/82,000 would be the key breakout level. Above the same, the market could bounce back till 25,260-25,300/82,300-82,500. On the other hand, dismissal of 24,950/81,500 may trigger further weakness. Below the same, the market could retest the level of 24,875-24,825/81,200-81,000.

Rupak De, Senior Technical Analyst, LKP Securities

The index remained largely sideways throughout the day as the 25,000 level was mostly held. On the daily chart, the index has been failing to reclaim 50 EMA for the last two days, indicating prevailing weakness. On the lower end, support is placed at 24,950–24,900. A fall below 24,900 could trigger a correction toward 24,750–24,700. On the other hand, resistance is seen at 25,150, and a move above this level could push the index towards 25,350–25,400 in the short term.