Market updates: Nifty, Bank Nifty Oct future
Market updates: Nifty, Bank Nifty future for Oct Series and highlights of Sept Series
Indian stock market closed positively in the September series. Nifty future gained 552.15 points or 5% (approx) and Bank Nifty future was up 3004 points in the last series. We have seen several efforts taken by the Finance Minister Nirmala Sitharaman to revive the economy in September. For example Stimulus Package, Tax cuts, mergers were the highlights in the last series.
Market Updates: Nifty, Bank Nifty Sept/Oct future
In September, initially, the sentiment of the market was very negative. Nifty future opened at 11078.70 and touched a low at 10721 on 19th Sept and after the corporate tax cut, it touched high at 11727 on 23rd Sept. Similarly Bank Nifty touched low on the same day 26790 and made high of 30957on 26th Sep. On the 23rd of September, the new tax structure has been welcome and appreciated by the market.
September series Highlights
The PSU Bank merger announcement came on 30th Aug 2019, it is a mega-merger of 10 PSU banks into 4 Bank. The street has given thumbs up to the merger news and after the initial dip, the counter has become stable. Later the news has increased the buying interest in the PSU banking counter.
The 1st quarter GDP growth of FY19-20 was 5%, as per the data released on 30th Aug. It was the weakest growth rate since the 1st quarter of 2013. The Indian market reacted negatively to the GDP numbers last month.
On 12th Sept CPI and IIP data released, the retail inflation had marginally increased to 3.21% in August from 3.15%. The IIP growth rises to 4.3% in July compared to 2% in June.
On 14th September’s drone attack soars the crude oil price on fear of crude supply, almost for two days market sentiment was negative.
On the other side, US President Donald Trump had postponed the tariff hike on Chinese goods in mid-September. The rate cut by FED and stimulus by the European Central Bank (ECB) helped to improve the global and domestic market in mid-September for just a few days.
Indian market got a big boost on 23rd September after the Finance Minister had reduced the Corporate Tax and declared GST benefits and other measures.
The government had also proposed a stake sale in the top 5 central public enterprises (CPSEs) and these are BPCL, Container Corporation(CONCOR) Shipping Corporation of India (SCI), THDC and NEEPCO.
On 24th September RBI had restricted the PMC Bank’s customer for withdrawal of money and later restrictions are limited facilities. The restriction was due to Banks Rs 2500 crores exposure to HDIL. Former MD and Chairman are already arrested in this regard.
Nifty, Bank Nifty views for October Series:
October Series started with a negative note. So far the Nifty future fell 437 points and Bank Nifty plunged 2329 points in the October series. FIIs are the net seller in the October series sold Rs 3969.45 crores and DIIs are the net buyer in cash segment bought Rs 4840.03 crores. One of the main reasons for negativity in the Indian market is FIIs outflow in the cash segment. Indian market sentiments always become positive whenever FIIs start buying. And FIIs will only invest when they feel that the Indian market is attractive (politically & economically) and can get a good return on Investment. The present economic situation in India is not favorable and attractive but the govt is trying best to revive the economic situation of India. We may need to wait a couple of months to see FIIs inflow in the Indian market.
Market events for the Oct Series
Auto Sales-
The Auto sales figure announced on the 1st of Oct was not encouraging. Almost all auto companies reported a drop in sales. This has impacted the auto stocks negatively. This is the festive season there is hope and expectations to improve the auto sales in the coming months.
RBI Policy-
The RBI Monetary policy was announced on 4th October Friday. RBI had cut the repo rate by 25bps to 5.15 %, this was the fifth cut in a row. RBI had also revised the GDP growth for FY 19-20 from 6.9% to 6.1%. The reverse repo rate was reduced to 4.9% and the bank rate stands at 5.40%. Investors had already discounted the 25 bps rate cut and the revised growth rate had turned the market sentiment into the negative zone.
The US-China Trade Talk-
The much-awaited trade talk between the world’s two largest economies is going to start on Thursday. The market has high expectations from the high-level trade talks between the US and China. Asian markets are also trading positive ahead of trade talks. But analysts say they are expecting no-deal status quo from the high-level talks. Any positive news from the trade talks will make the market sentiments in positive territory and vice versa.
Earnings for 2nd Quarter
The announcement of Q2 Earning for Nifty50 stocks will start from Thursday 10th Oct. IndusInd Bank and TCS will announce 2nd Quarter results on coming Thursday and Infosys will announce on Friday. There is a total of 18 companies will announce their 2nd quarterly result in the October series. The list is given below and traders having a position in these stocks should be alert.
Infosys, TCS, IndusInd Bank, HUL, Wipro, ZEE, HDFC Bank, Axis Bank, Bajaj Finserv, Asian Paints, Bajaj Finance, Bajaj Auto, Heromotocorp, HCL Tech, JSW Steel, SBI, ICICI Bank and IOC
Other Market events
The October series have many holidays Dussehra, Diwali both are in October. On 11th October the IIP and CPI data will be released, the market will react on the data on 14th Oct Monday. The WPI data will be released on the 14th of Oct during market. The RBI Monetary Policy meeting, minutes will be released on 18the Oct Friday. The Diwali Muhurat Trading is scheduled for the 27th Of Oct Sunday. The monthly expiry for the derivative is scheduled for 31st October the last day of the month.
Technical levels for Nifty and Bank Nifty future for Oct Series
Primary Trend Nifty Future( As on 08/10/2019): Mild down
The Range-Bound Trend of Nifty Future in October Series: 10760 – 11625
Primary Trend of Bank Nifty Future (As on 08/10/2019): Mild down to sideways
The Range-Bound Trend of Bank Nifty Future in October Series: 26780 – 30550
Conclusions:
The October series started with negative bias and so far all the six trading sessions ended in the red. The two major events will now derive the market, first is the US-China trade talk and the second one is Q2 Earnings. The Nifty and Bank Nifty future technical views for the Oct series are given above for your reference. Traders can also follow our daily Nifty and Bank Nifty future technical views on our website.
Your Stock Broker will never say these Hidden Charges.
Please share your views about the post.
If you like the post please share with your friends and others
Happy Investing!
Editor
Disclaimer-Nifty50Stocks.com has taken due care and caution to compile the data for its Website. The views and investment tips expressed by investment experts on Nifty50Stocks.com are their own and not that of the website or its management. Nifty50Stocks.com is not SEBI registered Advisors and advises its users to check with certified and SEBI registered experts before taking any investment decision. However, Nifty50Stocks.com does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Nifty50Stocks.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
