NIFTY OUTLOOK & OPTION TRADING TIPS FOR 10 OCT 2024

 

Market Report: Indian Equity Indices Close Marginally Lower Amid Volatility – October 10, 2024

On October 10, Indian equity indices concluded a volatile trading session with marginal declines, as concerns about inflation weighed on investor sentiment.

Key Indices Performance:

• Sensex closed at 81,467.10, down by 167.71 points or 0.21%.
• Nifty ended at 24,982, down 31.20 points or 0.12%.

Despite early gains, profit booking toward the close dragged the indices down. The Nifty opened higher, but it struggled to maintain momentum, closing just above the 20-day moving average (20DMA). As a result, the short-term trend remains positive, provided the index holds above 24,940. A drop below this level could lead to a further correction toward 24,800 or 24,700, while 25,100 serves as an immediate resistance level.

Key Market Highlights:

• Inflation Concerns: The Reserve Bank of India's (RBI) upward revision of Q3FY25 inflation estimates fueled worries over persistent inflationary pressures. This led to caution among investors, resulting in profit booking, particularly in FMCG stocks.
• RBI's Neutral Stance: Although the change in the RBI's stance to neutral was anticipated, the absence of signals for a near-term rate cut added to market uncertainty.
• Sectoral Performance:
  • FMCG was the biggest laggard, down 1.57%, followed by Energy.
  • On the upside, Pharma and Realty sectors were the best performers, each gaining between 1-2%.
• Midcap and Smallcap Outperformance: The BSE Midcap and Smallcap indices rose by over 1%, outperforming the broader market. Investors appeared to focus on stock-specific opportunities amid the market correction.

Top Nifty Gainers:

1. Trent
2. Cipla
3. Tata Motors
4. SBI
5. Maruti Suzuki

Top Nifty Losers:

1. ITC
2. Nestle
3. Reliance Industries
4. ONGC
5. HUL

Outlook: While volatility remains high, support and resistance levels are crucial for determining market direction. A breach below 24,750 could signal a bearish trend, while a breakout above 25,200 would suggest bullish momentum. Investors are advised to monitor these levels closely to assess the near-term outlook.