Stocks may bounce on value buying

GIFT Nifty:

The GIFT Nifty November futures contract is up 90 points, suggesting a strong start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,036.75 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,159.29 crore in the Indian equity market on 25 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 102931.94 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Dow Jones futures climbed 168 points Monday morning, signaling a positive open for US stocks. Investor sentiment improved after Israel opted against striking Iran's nuclear and oil facilities over the weekend, easing concerns about a major escalation in Middle Eastern tensions.

 

Asian shares traded higher, with the Japanese yen weakening to a three-month low. Investors eagerly awaited details of China's fiscal stimulus plans, as a recent report revealed a deepening decline in industrial profits. The upcoming National People's Congress meeting, scheduled for November 4-8, is expected to address financial work, state asset management, and potential changes to the bond-issuance quota or deficit ratio.

US stocks closed mixed on Friday, with the Nasdaq hitting a new intraday high while the S&P 500 and Dow Jones Industrial Average finished below recent peaks. The S&P 500 ended flat at 5,808.12 points on Friday, while the NASDAQ Composite rose 0.6%. The Dow Jones Industrial Average closed down 0.6%.

Investor interest in technology stocks intensified ahead of a slew of key earnings reports from major tech companies this week. Five of the "Magnificent Seven" tech giants are set to release their quarterly results. This week, investors will closely monitor a series of crucial economic indicators and corporate earnings reports for insights into the health of the economy and businesses.

Domestic Market:

The domestic equity barometers took a significant tumble Friday, extending their losing streak to five days. The Nifty closed below the 24,200 level, dragged by consumer durables, energy and metal shares. The recent "buy on dips" strategy, which had been a reliable tactic for the past few years, is now faltering in the face of sustained FII selling and a weakening global economic outlook. Factors such as rising bond yields, a strengthening dollar, and uncertainty surrounding the US election are also contributing to the market's decline.

The S&P BSE Sensex, dropped 662.87 points or 0.83% to 79,402.29. The Nifty 50 index slipped 218.60 points or 0.90% to 24,180.80. The 50-unit index fell 2.71% in the past five sessions.

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