Technical Talk: Nifty’s Support and Resistance Levels Amidst Market Volatility

Parkavi Finance Weekly Market Wrap

Tamilini: Welcome to Parkavi Finance, your reliable source for market updates and financial insights. I’m Tamilini and joining me today is Akshita. Let’s dive into this week’s market highlights.

Market Summary

Akshita: Thank you, Tamilini. This week was tough for Indian markets, with benchmark indices ending sharply lower. The Nifty 50 dropped to a fresh five-month low. Major factors behind this persistent decline include:

• The exodus of foreign institutional investors, marking their 34th consecutive day of selling.

• Disappointing earnings.

• A higher-than-expected CPI reading.

• A strengthening Dollar index.

• A spike in the US 10-Year Treasury yield.

These factors weighed heavily on the market, especially the broader markets.

Weekly Performance

Tamilini: For the week:

• Nifty 50 dropped 2.5%.

• Sensex dropped 2.4%.

• BSE Midcap fell 3.9%.

• BSE SmallCap fell 4.6%.

Foreign Institutional Investors net sold Rs 16,031 crore, while Domestic Institutional Investors net bought Rs 11,775 crore in the cash market.

Corporate Earnings Overview

Akshita: Moving on to corporate earnings, several large caps like HUL, Asian Paints, Britannia, Bajaj Auto, and Tata Motors reported weaker-than-expected numbers. Factors impacting their performance included:

• Heavy rains.

• Sluggish urban demand.

• Weak global demand.

However, there was a silver lining with companies from the IT, capital goods, select banks, asset management companies, pharma, chemicals, non-ferrous metals, and defense sectors showing resilience.

Inflation and Economic Indicators

Tamilini: October’s Consumer Price Index reading at 6.2% surpassed the RBI’s inflation tolerance limit, dampening hopes for a repo rate cut anytime soon. The high CPI was mainly due to elevated food inflation, especially in vegetables, affected by an extended monsoon.

Corporate News

Akshita: Now, let’s cover the key corporate news:

• L&T Technology Services signed a pact to acquire Silicon Valley-based Intelliswift for $110 million.

• UltraTech Cement plans to raise Rs 3,000 crore via bonds.

• Tata Chemicals’ Europe-based arm will invest Rs 655 crore in a sodium bicarbonate plant in the UK.

• KFin Technologies and CAMS announced a joint venture for MF Central.

• Cipla received eight observations from the US FDA for its Bengaluru facility.

• Deepak Nitrite will invest Rs 5,000 crore in a new manufacturing venture.

• Varun Beverages made acquisitions in Tanzania and Ghana, investing Rs 1,304 crore and Rs 127 crore respectively.

• Tata Power commissioned 126 MW of floating solar projects in Madhya Pradesh.

• India Glycols partnered with Amrut Distilleries to enter the premium alcoholic beverages market.

Domestic and Global Updates

Tamilini: In domestic updates, India’s retail inflation hit a 14-month high of 6.2% YoY in October, largely driven by a 42.2% increase in vegetable prices. Meanwhile, the Index of Industrial Production grew by 3.1% in September, showing improvement in manufacturing and consumer durables sectors.

Akshita: In the US, retail inflation was in line with estimates, with a 0.2% increase month-on-month. Core CPI grew by 0.3% month-on-month, while energy inflation remained flat for October.

Technical Levels for Nifty

Tamilini: On the technical front, the Nifty zone of 23,250 to 23,200 is expected to provide short-term support, marking the 61.8% Fibonacci retracement level. If Nifty falls below 23,200, further corrections could be seen. On the upside, the 23,900 to 24,000 range will act as a significant resistance.

Conclusion

Akshita: That wraps up this week’s market overview. For more updates, don’t forget to like, share, and subscribe to Parkavi Finance. Stay informed and invest wisely.

Tamilini: Thank you for tuning in. See you next time!

Get the latest market updates and financial insights from Parkavi Finance. This week, we cover the Indian markets’ performance, corporate earnings, inflation indicators, and key corporate news. Stay informed with our technical analysis of Nifty levels and make wise investment decisions.

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