Indian benchmark indices fell on Thursday, marking their worst monthly performance since March 2020, as record foreign outflows and weak corporate earnings dampened investor sentiment.
The NSE Nifty 50 declined by 0.56% to close at 24,205, while the BSE Sensex dropped 0.69% to 79,389. Both benchmarks lost around 6% in October, their steepest monthly drop since March 2020, when COVID-19 lockdowns triggered a sharp global market selloff.
Here's how analysts read the market pulse:
"The Nifty index remained volatile before closing on a negative note. On the hourly chart, it encountered resistance around the 21 EMA, leading to a pullback toward 24,200. Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750," said Rupak De of LKP Securities.
Jatin Gedia, Sharekhan by BNP Paribas, said, "Nifty opened with a gap down today and witnessed volatile price action during the day. It closed down 126 points. On the daily charts we can observe that the Nifty has been trading in the range of 24,500–24,070 since the last five trading sessions. The range bound action in the index is likely to continue on account of the monthly expiry of October series derivative contracts. Post that we are likely to witness trending moves. Crucial support levels are 24200 – 24180 while resistance is placed at 24500 – 24550."
That said, here’s a look at what some key indicators are suggesting for Friday's action:
US market:
Wall Street experienced a downturn on Thursday, as Microsoft and Meta Platforms issued warnings about rising AI costs, dampening enthusiasm for the megacap stocks that have driven market gains this year.
Shares of Meta Platforms, the parent company of Facebook, fell 2.8%, while Microsoft dropped 5.1%, despite both companies surpassing earnings expectations in their reports released after the market closed on Wednesday.
Additionally, the yield on the benchmark 10-year Treasury note rose slightly above 4.3%, adding further pressure on equities.
In economic news, the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, increased by 0.2% in September, matching economists' predictions. However, the core PCE figure came in at 2.7%, slightly above the 2.6% forecast, with consumer spending also rising more than anticipated.
European stocks:
Europe's benchmark index opened lower on Thursday, and was set to record its worst monthly performance in a year, while moves were mainly powered by a mixed bag of earnings.
The pan-European STOXX 600 dropped 0.6% by 0812 GMT, falling to its lowest level in nearly two months.
The index is down 2.72% on the month, poised to drop for a second straight month and to log its worst monthly performance since October 2023. Its previous steepest monthly drop in that period was a 1.5% decline in April.
Technology stocks dropped 1.1% on the day and were the biggest drag on the benchmark.
Tech View:
Nifty opened flat and traded within a narrow range, ending the day with a negative close at 24,205, Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates said, highlighting that it was the Nifty Smallcap 100 index that outperformed the benchmarks, gaining about 1.15%.
“Technically, Nifty formed a red candle on the daily chart, suggesting weakness, and has been consolidating between 24,000 and 24,500 for the past few sessions. A breakout on either side of this range could set the next direction for Nifty,” Yedve said.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Prudent Corporate Advisory, Akzo Nobel India, Mastek, Bombay Burmah Trading, Vedant Fashions, and Netweb Technologies among others.
The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signaling weakness ahead:
The MACD showed bearish signs on the counters of Sky Gold, Tube Investment of India, Persistent Systems, Mpahais, and Akums Drugs & Pharmaceuticals among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
ICICI Bank (Rs 3,045 crore), L&T (Rs 2,760 crore), Cipla (Rs 2,695 crore), HDFC Bank (Rs 1,982 crore), TCS (Rs 1,488 crore), Infosys (Rs 1,300 crore), and Tata Power (Rs 1,297 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms:
Vodafone Idea (Shares traded: 64 crore), IDFC First Bank (Shares traded: 12.3 crore), PNB (Shares traded: 9.3 crore), YES Bank (Shares traded: 6 crore), IRFC (Shares traded: 5.5 crore), RattanIndia Enterprises (Shares traded: 4.7 crore), and Piramal Pharma (Shares traded: 4.4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Piramal Pharma, Poly Medicure, Suven Pharma, Gillette India, Crisil, and Fortis Healthcare among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major stocks hit their 52-week lows on Thursday.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,600 stocks ended in the green, while 1,329 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The NSE Nifty 50 declined by 0.56% to close at 24,205, while the BSE Sensex dropped 0.69% to 79,389. Both benchmarks lost around 6% in October, their steepest monthly drop since March 2020, when COVID-19 lockdowns triggered a sharp global market selloff.
Here's how analysts read the market pulse:
"The Nifty index remained volatile before closing on a negative note. On the hourly chart, it encountered resistance around the 21 EMA, leading to a pullback toward 24,200. Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750," said Rupak De of LKP Securities.
Jatin Gedia, Sharekhan by BNP Paribas, said, "Nifty opened with a gap down today and witnessed volatile price action during the day. It closed down 126 points. On the daily charts we can observe that the Nifty has been trading in the range of 24,500–24,070 since the last five trading sessions. The range bound action in the index is likely to continue on account of the monthly expiry of October series derivative contracts. Post that we are likely to witness trending moves. Crucial support levels are 24200 – 24180 while resistance is placed at 24500 – 24550."
That said, here’s a look at what some key indicators are suggesting for Friday's action:
US market:
Wall Street experienced a downturn on Thursday, as Microsoft and Meta Platforms issued warnings about rising AI costs, dampening enthusiasm for the megacap stocks that have driven market gains this year.
Shares of Meta Platforms, the parent company of Facebook, fell 2.8%, while Microsoft dropped 5.1%, despite both companies surpassing earnings expectations in their reports released after the market closed on Wednesday.
Additionally, the yield on the benchmark 10-year Treasury note rose slightly above 4.3%, adding further pressure on equities.
In economic news, the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation, increased by 0.2% in September, matching economists' predictions. However, the core PCE figure came in at 2.7%, slightly above the 2.6% forecast, with consumer spending also rising more than anticipated.
European stocks:
Europe's benchmark index opened lower on Thursday, and was set to record its worst monthly performance in a year, while moves were mainly powered by a mixed bag of earnings.
The pan-European STOXX 600 dropped 0.6% by 0812 GMT, falling to its lowest level in nearly two months.
The index is down 2.72% on the month, poised to drop for a second straight month and to log its worst monthly performance since October 2023. Its previous steepest monthly drop in that period was a 1.5% decline in April.
Technology stocks dropped 1.1% on the day and were the biggest drag on the benchmark.
Tech View:
Nifty opened flat and traded within a narrow range, ending the day with a negative close at 24,205, Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates said, highlighting that it was the Nifty Smallcap 100 index that outperformed the benchmarks, gaining about 1.15%.
“Technically, Nifty formed a red candle on the daily chart, suggesting weakness, and has been consolidating between 24,000 and 24,500 for the past few sessions. A breakout on either side of this range could set the next direction for Nifty,” Yedve said.
Stocks showing bullish bias:
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade on the counters of Prudent Corporate Advisory, Akzo Nobel India, Mastek, Bombay Burmah Trading, Vedant Fashions, and Netweb Technologies among others.
The MACD is known for signaling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signaling weakness ahead:
The MACD showed bearish signs on the counters of Sky Gold, Tube Investment of India, Persistent Systems, Mpahais, and Akums Drugs & Pharmaceuticals among others. Bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms:
ICICI Bank (Rs 3,045 crore), L&T (Rs 2,760 crore), Cipla (Rs 2,695 crore), HDFC Bank (Rs 1,982 crore), TCS (Rs 1,488 crore), Infosys (Rs 1,300 crore), and Tata Power (Rs 1,297 crore) among others were among the most active stocks on NSE in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms:
Vodafone Idea (Shares traded: 64 crore), IDFC First Bank (Shares traded: 12.3 crore), PNB (Shares traded: 9.3 crore), YES Bank (Shares traded: 6 crore), IRFC (Shares traded: 5.5 crore), RattanIndia Enterprises (Shares traded: 4.7 crore), and Piramal Pharma (Shares traded: 4.4 crore) among others were among the most traded stocks in the session on NSE.
Stocks showing buying interest:
Shares of Piramal Pharma, Poly Medicure, Suven Pharma, Gillette India, Crisil, and Fortis Healthcare among others witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Stocks seeing selling pressure:
No major stocks hit their 52-week lows on Thursday.
Sentiment meter bulls:
Overall, market breadth favoured bulls as 2,600 stocks ended in the green, while 1,329 names settled in the red.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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