Market today: Q2 results, Gold at record, muhurat trading, India ind output

Along with September quarter results across countries, investors will react to key macroeconomic data, including advance US GDP estimates, India's core sector growth, and China's manufacturing PMI

Share market today: Indian shares are likely to open lower amid weakness in global markets. Around 7:03 AM, GIFT Nifty futures were down 66.05 points at 24,305.

 

The US market on Wednesday finished lower with the Dow Jones closing down 0.22 per cent, followed by the S&P 500 down 0.33 per cent and the Nasdaq Composite down 0.56 per cent.

 

The weakness can be attributed to investors digesting a fresh batch of earnings reports from mega cap technology names such as Microsoft, Meta Platforms, and others. The Q3 gross domestic product (GDP) data which showed the US economy grew at a 2.8 per cent annualised rate but fell short of the consensus of 3.1 per cent also weighed on sentiments.

 

 

Also, a separate report showed that the US private payrolls increased by 233,000 jobs last month after rising by an upwardly revised 1,59,000 in September.

 

Asian markets were also trading lower today. At the last count, Japan's Nikkei was down 0.52 per cent, China's mainline CSI 300 was down 0.90 per cent and Shanghai was flat with a negative bias.

 

In the previous session, back home, the BSE Sensex shed 426.85 points, or 0.53 per cent, to settle at 79,942.18. Mirroring the Sensex, the Nifty50 ended lower by 125.99 points, or 0.51 per cent, to 24,340.85. 

 

Meanwhile, investors today will closely watch the Q2 results of Tata Investment Corporation and other blue-chip companies.

 

They will also react to the second quarter results released by L&T, Tata Power, Dabur, and others.

 

On the occassion of Diwali, the BSE, National Stock Exchange (NSE) and Muli Commodity Exchange (MCX) will conduct an hour long muhurat trading session on November 1, rather than a regular trading session.

 

ALSO READ: Is Muhurat Trading on Oct 31 or Nov 1? What NSE, BSE said on date, time

 

In the primary market, shares of Usha Financial Services Ltd will list on NSE SME today.

 

That apart, on the cusp of launching its Rs 11,327 crore initial public offering (IPO) next week, Swiggy believes quick commerce to be its future growth engine and anticipates that it will outpace its core food delivery business over the next five years. READ MORE

 

On the data front, infrastructure output data revealed growth in the output of eight key infrastructure industries — known as the core sector — recovered to 2 per cent year-on-year (Y-o-Y) in September, from the contraction recorded in the preceding month. For the first time in 42 months, the output of the core sector had contracted (1.6 per cent) during August. READ MORE

Global cues

While Wall Street will closely watch the Q3 earnings, developments around elections will also be on the radar.

 

Data suggest a neck-and-neck fight between Republican Donald Trump and his Democratic rival Kamala Harris.

 

A recent Reuters poll showed Vice President Kamala Harris, a Democrat, leading Republican Donald Trump 44 per cent to 43 per cent among registered voters nationally, within the margin of error.

 

On the economic front, the personal consumption expenditures price (PCE) index for September will be eyed as it is said to be the Federal Reserve’s preferred inflation indicator.

 

Economists expect that the PCE grew by 0.2 per cent on a monthly basis and 2.1 per cent from a year earlier.

 

In Asia, along with the corporate earnings, the Bank of Japan's (BOJ) policy decision and China's official purchasing managers index (PMI) surveys for October will be key triggers driving the markets.

 

After the BOJ's policy decision, investors will be paying close attention to BOJ Governor Kazuo Ueda's view on the macroeconomic outlook and how Sunday's election might impact the economy.

 

China's manufacturing PMI came in at 50.1 as compared to the expectation of 49.9.

West Asia update

As per reports, Israel pummeled the Gaza Strip with new bombardments that killed at least 30 people on Wednesday. Eight of Wednesday's victims were killed in a strike in the Salateen area of Beit Lahiya in northern Gaza.

Commodities update

Gold rose to an all-time high as uncertainty over the US presidential election boosted safe-haven demand. Spot gold rose 0.5 per cent to $2,788.87 per ounce, after reaching a record high of $2,789.73 earlier in the session.

 

Oil prices were stable on Wednesday. Last seen, Brent crude oil futures were up 0.50 per cent at $72.91 per bbl.

Here's how analysts view today's (October 31) trading session

Rupak De, Senior Technical Analyst, LKP Securities

Nifty remained volatile throughout the day, trading within a range of 24,300 to 24,500. On the hourly chart, Nifty encountered resistance around the 50 EMA, leading to a correction toward 24,300. Sentiment may stay sideways as long as Nifty remains within the range of 24,250 to 24,500. A decisive breakout from this range is likely to give direction to Nifty. On the lower end, supports are placed at 24,250 and 24,000, while resistances are seen at 24,500 and 24,750.

 

Aditya Agarwal Head of Derivatives & Technical Analysis at Sanctum Wealth

Short-term charts for Nifty remains in an oversold zone and minor short-covering move from current levels can be seen. However, on the higher side, Nifty will continue to see stiff resistance around the 24,480-24,520 range and only a close above this will trigger another round of short covering that can take it towards 24,680/ 24,740 levels. On lower side, index will find immediate support around 24,280/ 24,240 levels and can see buying interest from there.

 

Nifty Bank's structure remains positive and it will find support around the 51,400/51,200 range and dips towards those levels can be used to enter fresh longs. On the higher side, 52,200/52,500 will be a strong supply zone for the index.

 

Hrishikesh Yedve, AVP technical and derivatives research, Asit C. Mehta Investment Interrmediates Ltd

On the technical front, Nifty formed a small red candle near the 100-Days Exponential Moving Average (DEMA), signaling strong resistance around 24,470-24,500 levels. If the index sustains above 24,500, it may extend gains to the 24,600–24,700 range, with 24,070 acting as key support. As long as it holds above this level, a "buy on dips" approach remains viable.

FII, DII update: How much did FIIs, and DIIs buy or sell on October 30?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 4,613.65 crore. 

 

Conversely, the DII's were net buyers of equities worth Rs 4,518.28 crore.