Share Market Today: Market in the Red, What to Expect on October 16
Share Market Today
Market Analysis and Outlook – October 13, 2023
Weak Revenue Guidance and Rising Crude Oil Prices Impact Market Sentiment
Vinod Nair, an analyst at Geojit Financial Services, has highlighted two significant factors that have negatively impacted the market sentiment on October 13, 2023: the weak revenue guidance in the IT sector and the current surge in crude oil prices.
In this market analysis, we will explore the market’s performance on that day, key drivers behind the movements, and expert opinions on the potential direction of the market on October 16, 2023.
Market Performance on October 13, 2023
On October 13, 2023, the Indian equity benchmark indices experienced a downward trend, closing in the red. The market was characterized by significant volatility throughout the day.
The Nifty index closed at approximately 19,750, while the Sensex closed at 66,282.74, representing a decrease of 125.65 points or 0.19 percent.
The Nifty index ended the day at 19,751, down 43.00 points or 0.22 percent. The day saw approximately 1,800 shares gaining, 1,739 shares declining, and no change in 155 shares.
Winners and Losers
The Nifty index’s performance featured notable gainers and losers. Among the top Nifty losers on October 13 were Axis Bank, Infosys, Adani Enterprises, SBI, and Wipro.
Conversely, the top gainers included Tata Motors, IndusInd Bank, HCL Technologies, Tata Consumer Products, and Nestle India.
This divergence in performance across sectors and companies underlines the complexity of the market dynamics on that particular day.
Sector Performance
The performance of different sectors also provides valuable insights into market trends. Auto and Realty sectors managed to close the day with gains of 0.5 percent, while PSU Bank and IT sectors experienced declines of 0.5-1 percent.
BSE midcap and smallcap indices, on the other hand, closed relatively flat. This mixed performance across sectors further adds to the intricacy of the market situation on October 13, 2023.
Market Breadth and Sentiment
In terms of market breadth, 16 out of 30 Sensex stocks ended the day in decline, and selling was observed in 26 out of 50 stocks on the Nifty index.
Furthermore, 9 out of 12 shares in the Nifty Bank also showed a decline. These numbers reflect the overall bearish sentiment that dominated the market on this particular day.
Additionally, the Indian Rupee weakened by 2 paise and closed at 83.26 against the US dollar, contributing to the cautious sentiment in the market.
Expert Opinions on Market Prospects – October 16, 2023
To gain a better understanding of how the market might evolve on October 16, 2023, we turn to the insights of experts in the financial industry.
Vinod Nair (Geojit Financial Services)
Nair acknowledges that weak revenue guidance in the IT sector and rising crude oil prices have dampened market sentiment.
However, he also sees hope stemming from domestic positive factors. These factors include a significant drop in domestic inflation, robust IIP figures (Index of Industrial Production), and expectations of strong Q2 results. These positive aspects could potentially provide support to the market.
Rupak Dey (LKP Securities)
Dey notes that bulls were able to defend the 19,600 level during the trading day due to strong open interest (OI) at the 19,600 strike price from put writers.
As long as Nifty remains above this level, the market may maintain its strength. Dey suggests adopting a “buy on dips” strategy while highlighting the next resistance level at 19,850.
If this barrier is breached, Nifty could potentially move towards the psychologically significant 20,000 mark.
Jatin Gedia (Sharekhan)
According to Gedia, Nifty began the day with a decline but showed signs of recovery. By the end of the trading session, it had closed well above the intraday low, even though it was still down by 43 points.
Analyzing the daily chart, Gedia identifies the 19,640-19,620 zone as a crucial support level for Nifty, preventing further losses.
The daily Bollinger bands, which are contracting, indicate a likelihood of further consolidation in the index.
However, Gedia emphasizes that daily and hourly momentum indicators are sending conflicting signals, adding to the likelihood of continued consolidation.
In the short term, he anticipates this consolidation to occur in the range of 19,500 to 20,100. This phase may also see increased stock-specific activity and sector rotation.
Bank Nifty Outlook
Bank Nifty experienced a substantial correction on October 13. Nevertheless, there is hope for buying on declines, according to experts.
The major support for Bank Nifty is identified at 44,000 to 43,800. As long as this support level remains unbroken, there is optimism for a recovery in Bank Nifty, with potential targets at 45,050 to 45,350.
Closing Thoughts
The financial markets are influenced by a multitude of variables, making predictions subject to change based on evolving conditions.
The insights provided by experts offer valuable guidance, but it is essential to consider these analyses alongside thorough research and a cautious approach when making financial decisions.
The market’s outlook for October 16, 2023, is shaped by both domestic and international factors, and investors should remain vigilant and adaptable in navigating this dynamic environment.
