Mumbai (Maharashtra) [India], October 31 (ANI): The stock market witnessed a bearish trend as it closed in the red on Tuesday, with both the benchmark indices, Sensex and Nifty, ending the day in negative territory.
The Sensex saw a significant decline of 237.72 points, closing at 63,874.93. Likewise, the Nifty dropped by 61.30 points to settle at 19,079.60. Among the Nifty companies, there were 26 advances and 24 declines, indicating a mixed performance across various sectors.
In the Nifty index, notable gainers included SBI Life, Titan, HDFC Life, Kotak Bank, and Asian Paints.
On the other hand, Sun Pharma, M&M, Eicher Motors, LITMindtree, and ONGC were among the top losers.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Fed Chair Jerome Powell and the rest of the governing body are widely expected to keep rates unchanged. Despite the US market climbing up over 1 per cent, the biggest gain over 5-month and the oil price falling to a 1-month low at below USD88/bbl, the Nifty closed cautiously in flat/negative territory. Mixed bag on US economy data, drop in commodity price and ahead of US Fed policy outcome lifted US Dow Jones Index over 500 points but the market is cautiously eyeing US Fed 2-day policy meeting that will commence today and release the policy outcome on interest rate decision tomorrow”.
Market analysts attributed the cautious sentiment to several factors, including the U.S. Federal Reserve’s two-day policy meeting and upcoming interest rate decisions, which kept investors on their toes.
The U.S. market, in contrast, experienced a significant gain of over 1 per cent, the most substantial increase in the last five months.
Additionally, falling oil prices to a one-month low, trading below USD 88 per barrel, contributed to the mixed sentiment.
“US GDP data, China PMI data and Japan policy outcome will be announced today. Metal stocks will be focused on account of surging base metal prices on LME. Nifty futures OI increased by 2.17 per cent to 1.17 Cr and Bank Nifty futures open Interest (OI) increased by 6.14 per cent to 26.40 Lakhs. Nifty Put/Call Ratio (OI) increased from 0.96 to 1.10 level. India VIX is up by 8.98 per cent from 10.90 to 11.77 levels in last 2 trading sessions”, said Aggarwal.
The Dow Jones Index in the United States climbed over 500 points due to mixed economic data and a decrease in commodity prices.
Investors were also closely monitoring the release of key economic data, such as U.S. GDP figures, China’s PMI data, and Japan’s policy outcomes.
Aggarwal said, “On weekly front, Maximum Call OI is at 19500 then 19400 strike while Maximum Put OI is at 19000 then 19100 strike. Call writing is seen at 19150 then 19100 strike while meaningful Put writing is seen at 19000 strike. Option data suggests a broader trading range in between 18800 to 19600 zones while an immediate trading range is between 19000 to 19400 zones”.
“Bias remains positive for Indian Economy. We are allocating good money on dips in quality stocks. We except India to outperform global equities. Every dip is golden opportunity for medium to long term investors. We remain optimistic on Banking, IT, FMCG, Metals & Petrochemicals sector”, he added
In the Indian futures market, Nifty futures open interest (OI) increased by 2.17 percent to 1.17 crores, while Bank Nifty futures OI surged by 6.14 percent to 26.40 lakhs.
The Nifty Put/Call Ratio (OI) increased from 0.96 to 1.10, indicating changing investor sentiment. The India VIX rose by 8.98 percent, moving from 10.90 to 11.77 over the last two trading sessions.
On the weekly front, the Maximum Call OI was at the 19500 and 19400 strike prices, while the Maximum Put OI was at the 19000 and 19100 strike prices.
Call writing was observed at the 19150 and 19100 strike prices, while meaningful Put writing occurred at the 19000 strike.
This option data suggests a broader trading range between 18800 and 19600, with an immediate trading range of 19000 to 19400.
Despite the current market challenges, experts maintain a positive bias for the Indian economy. They are advocating for investments in quality stocks on dips and anticipate that India will outperform global equities.
The sectors of banking, IT, FMCG, metals, and petrochemicals continue to be of particular interest to investors, with every dip seen as a golden opportunity for medium to long-term investment.
Investors are advised to remain cautious and vigilant amid global economic developments, while keeping a long-term perspective in the Indian stock market. (ANI)
