Today’s Market News :
* The Nifty 50 index has shown signs of weakness, plunging 1.25% to a 10-week low, breaking crucial support levels and indicating a potential further correction to the 24,000-23,900 zone.
GiftNifty showing small gap-up opening to flat opening
Clear selling in the chart, indicating sellers are present but in huge profit, making it difficult to target them directly
* Immediate resistance for the Nifty 50 is observed at 24,700, while the market sentiment is bearish, as indicated by the formation of a long bearish candlestick pattern and negative momentum indicators.
* The Put-Call ratio has dropped to 0.73, reflecting a bearish mood in the market, with increasing volatility as the India VIX climbed above the 14 level.
* Foreign Institutional Investors (Flls) have been net sellers throughout October, offloading shares worth Rs 82,479.7 crore, while Domestic Institutional Investors (DIIs) have stepped in with purchases worth Rs 77,402 crore.
* In the Nifty 50 index, Titan, Shriram Finance, ICICI Bank, Tech Mahindra, and Wipro led the gains, while Tata Steel, Tata Consumer Products, M&M, Kotak Mahindra, and Tata Motors were among the worst performers.
Nifty bulls are facing challenges as Q2 results lead to downgrades in earnings estimates and target price cuts, particularly in consumer sectors like auto and FMCG due to sluggish demand and rising competition.
* High input costs are compressing margins across sectors, with banks performing relatively well but market valuations remaining elevated, posing risks for investors.
* SBI Life Insurance is set to announce its quarterly results for Q2 2024 today, with brokerages predicting a year-on-year growth in annual premium equivalent (APE) ranging from 0% to 14%.
* The value of new business (VNB) estimates varies significantly among brokerages, with projections between Rs 1,395 crore and Rs 1,617 crore, indicating a divided outlook on growth.
Gold prices increased by 0.18% on October 22, 2024, closing at Rs 77,909, marking a year-over-year rise of 28.95%.
* Despite the increase, gold demand in the second quarter of 2024 declined by 6% due to reduced appetite from the jewellery sector.
