 "Share Market Today: Bajaj Auto Q2 nos, Oil falls, Hyundai Motor IPO Day 2")
Stock Market Today, October 16, 2024: GIFT Nifty signals a weak start for Indian benchmark indices, Nifty50 and BSE Sensex. At 6:30 AM, GIFT Nifty Futures were trading about 49 points lower at 25,069, suggesting a negative start for Indian markets.
Domestic triggers
Back home, investors will focus on Bajaj Auto's results, expected later today. Analysts are optimistic about major revenue growth, projecting an increase of up to 25 per cent year-over-year, driven by robust domestic and export sales of two-wheelers. A notable shift towards premium motorcycles is anticipated to enhance average realisations by approximately 7.2 per cent. READ MORE
Additionally, the market will be watching Q2 results from companies like LTTS, Mphasis, CRISIL and 5Paisa, among 16 others.
Wall Street update
US stocks closed lower on Tuesday, dragged by tech shares. The three major US indexes ended in negative territory, with the Dow Jones settling 0.75 per cent lower and the S&P 500 slipping 0.76 per cent. The Nasdaq Composite, meanwhile, fell 1.01 per cent.
More From This Section
Asia-Pacific markets
Asia-Pacific markets opened lower on Wednesday, with Japan’s Nikkei leading the losses following declines on Wall Street.
Japan’s Nikkei 225 fell 1.85 per cent, the Topix dropped 1.13 per cent, Australia’s S&P/ASX 200 started 0.4 per cent lower, while Korea’s Kospi fell 1.22 per cent and the Kosdaq dropped 0.93 per cent.
Traders are also assessing recent economic data; New Zealand’s consumer price index for Q3 rose 2.2 per cent year-on-year, aligning with expectations. Japan’s core machinery orders fell 1.9 per cent month-on-month, coming in worse than anticipated, marking the fifth decline this year. South Korea’s unemployment rate increased to 2.5 per cent in September, up from 2.4 per cent in August.
According to reports, investors are looking for potential stimulus measures to support China’s real estate sector, as the housing minister is set to hold a press briefing on Thursday.
Commodity prices
US crude futures fell over 4 per cent on Tuesday after Israel reportedly assured the US it does not plan to strike Iran’s oil facilities, alleviating fears of a major supply disruption. The West Texas Intermediate November contract closed at $70.58 per barrel, down $3.25 or 4.4 per cent, while the Brent December contract fell to $74.25 per barrel, down $3.21 or 4.14 per cent.
Meanwhile, gold prices edged higher, lifted by retreating Treasury yields, with spot gold rising about 0.6 per cent to $2,666.08 per ounce.
Other triggers
Key indicators to watch today include Britain’s inflation, core inflation, PPI, and retail prices for September, as well as US export and import prices for September.
IPO corner
The Hyundai Motor IPO will enter Day 2 of its subscription today, having garnered 18 per cent subscription on the opening day (Day 1). The offering received bids for 17.81 million shares—three-fourths from retail investors—against 99.77 million shares on offer. Hyundai allotted 42.4 million shares worth Rs 8,315 crore to anchor investors at Rs 1,960 apiece. The price range for the issue is Rs 1,865-Rs 1,960 per share, valuing the company at Rs 1.51 trillion-Rs 1.59 trillion. The IPO closes on Thursday. READ MORE
Additionally, Lakshya Powertech Limited's IPO (SME) opens for subscription today.
FII and DII activity
On October 15, foreign institutional investors (FIIs) offloaded shares worth Rs 1,748.71 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 1,654.96 crore.
Market recap
Benchmark equity indices BSE Sensex and NSE Nifty50, after initially gaining, settled in negative territory on Tuesday (October 15). The BSE Sensex shed 152.93 points or 0.19 per cent, closing at 81,820.12, while the Nifty50 ended at 25,057.35, down 70.60 points or 0.28 per cent. Notably, small-cap stocks outperformed the benchmarks, with the Nifty Smallcap 100 index rising by 1.11 per cent, and the Nifty Midcap 100 also gaining 0.21 per cent.
Here's how analysts are assessing today's (October 16) trading session:
Shrikant Chouhan, Head of Equity Research, Kotak Securities
The short-term market texture is non-directional and range bound activity is likely to continue in the near future. For the day traders now, 25,000/81,500 would be the immediate support zone. Above the same, we could see one quick pullback rally till 25,200-25,250/82,300-82,500. On the flip side, below 25,000/81,500 the market could retest the level of 24,920-24,900/81,000-80,700.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty remained volatile throughout the day but sustained above the 21 EMA on the daily timeframe. A fall below this level could increase weakness, with the possibility of Nifty dropping below 24,900. If Nifty falls below 24,900, it may trigger a further correction towards 24,700. On the higher side, resistance is seen at 25,200.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates
On the daily chart, the index formed a red candle, indicating selling pressure at higher levels. On the upside, the 21-day Exponential Moving Average (21-DEMA) is positioned near 25,250, which will act as an immediate hurdle for the index, followed by 25,400. On the downside, immediate support is found near 24,900. Traders are advised to hold long positions as long as the index sustains above 24,900.