Dovish FOMC Minutes and record close for the S&P 500 and Nasdaq Composite lifts animal spirits at Dalal Street. Nifty IT index climbs 1.09% ahead of TCS Q2.
NIFTY (+136, 25182)
Sensex (+398, 82172)
Bank Nifty (+174, 56192)
The mild corrective action that was witnessed by concerns of overbought technical conditions was shrugged off in today’s trade and probably will be forgotten by investors if TCS Q2 surpasses street’s estimates.
The Positive takeaway: Nifty buyers stepped in with bargain hunting conviction, driving the benchmark to close near the day’s highs.
The 2-Positive Catalysts:
1) The S&P 500 and Nasdaq have notch new records.
2) The Fed minutes hint at more rate cuts. The path ahead is quite dovish.
Please note, emerging markets could witness buying boosted by weaker USD and more favorable global funding conditions.
Bottom-line: The bears must be believing that it is ridiculous to be bullish, at a time when Trump’s 50% tariff threats are upon us but that said, we suspect, they are overlooking the power of animal spirits.
Long story short: Nifty Bulls also shrug-off tariff noise and overbought chatter, Bears simply sulk”
Adv-Dec 42—08
INDIA VIX 10.12 (-1.84%)
NIFTY PCR (14th OCT) 1.01
NIFTY PCR (28th OCT) 1.02
USD/INR Futures (Sep) (+0.02%, 88.87)
SECTOR GAINERS:
NIFTY METAL (+2.17%)
NIFTY HEALTHCARE (+1.07%)
NIFTY PHARMA (+1.05%)
SECTORS LOSERS
None
STOCKS IN SPOTLIGHT: SML Isuzu (+0.42%)
1) Ahead of TCS Q2, the Nifty IT index surged 1.09%. Nifty IT index has been an outperformer in last 2 trading session, up around 2.24%.
Bright spots amongst IT stocks were: HCL Technologies (+2.15%), Oracle Financial Services Software (+1.2%), Persistent Systems (+1.32%), LTIMindtree (+1.93%%), Tata Consultancy Services (+1.09%), Infosys (+0.98%)
2) Eicher Motors (-0.33%) slipped after the company announced that its joint venture, VE Commercial Vehicles (VECV), will invest ₹544 crore to produce and assemble the Volvo Group’s globally acclaimed 12-speed automated manual transmission (AMT).
2) HFCL (+1.26%) gained after the company secured a $34.19 million (≈₹303.35 crore) export order for the supply of optical fiber cables. The order, obtained through HFCL’s wholly owned overseas subsidiary, comes from a reputed international customer.
TODAY’S MARKET RE-CAP:
1) All sectors ended in green as Nifty IT index was in spotlight ahead of TCS Q2.
2) Bank Nifty (+0.31%) inched higher recovering most of yesterday’s losses. Bank Nifty’s all-time-high continues to be at 57628.40 mark.
3) Nifty (+0.54%) did open on a firm footing and the positive takeaway was that the benchmark witnessed strength all thru the trading session and most importantly, ended on a strong bullish note.
4) The market breadth (42:08) was very much in favor of the bulls.
5) Nifty Mid-cap (+1.09%) and Nifty Small-cap (+0.63%) indices ended with smart gains.
6) Technically, the next goal post for Nifty continues is seen at 25670 mark ( High as on June 30th 2025) albeit some serious consolidation.
Downside support seen at 24927 for Friday’s trade.
Bottom-line: All is well that ends well.
BULLS OF THE DAY:
TATASTEEL (+2.48%)
JSWSTEEL (+2.34%)
SBILIFE (+2.26%)
HCLTECH (+2.15%)
BEL (+1.55%)
BEARS OF THE DAY:
AXISBANK (-1.06%)
TITAN (-0.61%)
TATACONSUM (-0.46%)
MARUTI (-0.40%)
HDFCBANK (-0.38%)
OUR VIEW FOR FRIDAY’S TRADE
Nifty is still above its 21 DMA (25039), 50 DMA (24851) and its 100 DMA (24951).
Nifty’s 200 DMA at 24180 mark.
Technically, the next goal post for Nifty continues is seen at 25670 mark ( High as on June 30th 2025) albeit some serious consolidation.
Downside support seen at 25025 for Friday’s trade.
Bottom-line: Nifty seen hitting pause button.
ALL ABOUT NIFTY:
Nifty (CMP: 25182)
Support: 25025/24851
Resistance: 25225/25401
Range: 25037-25225
21 DMA: 25040
50 DMA: 24852
200 DMA: 24180
Trend: Positive
BULLISH LOOKING STOCKS:
ASHOKLEY
SAIL
TATASTEEL
BULLISH LOOKING STOCKS (LONG TERM):
HBL ENGINEERING
L&T
BEL
BEARISH LOOKING STOCKS:
NAUKRI
POLICYBZR
KAYNES
STOCKS TO AVOID:
IEX
HDFCAMC
KEI
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