Closing Bell: Nifty ends Oct Series around 17,750, Sensex up 212 pts; metal, power, realty gain

Markets ended with modest gains on the expiry day of October month derivatives contracts amid mixed cues. After the initial uptick, the Nifty index oscillated in a range and finally settled closer to the upper band of the day’s range at 17,736.95 levels. Meanwhile, sectoral indices also traded mixed wherein buoyancy in realty, metal and oil&gas kept the traders busy while the IT pack was on the back foot. The broader indices too traded in sync with the trend and gained nearly half a percent each.

The consolidation in Nifty is on the expected lines and we recommend focusing more on the sector/stock selection for now. Apart from banking, sectors like auto and selectively pharma, realty and metal are likely to do well in near future. Participants should align their positions accordingly.

Weak signals from the global markets and elevated oil prices are challenging the domestic market to maintain its gains. The US IT giants' disappointing quarterly earnings served as the catalyst for selling in the US market.

ECB is expected to aggressively increase rates by 75bps. Investors are expecting world central banks to slow down the pace of rate hikes, in the future, which could be positive for India in 2023.

Trading session was marked by extreme volatility on the monthly F&O expiry day, but sharp rally in metals, realty and oil & gas stocks helped markets maintain the bullish sentiment seen in the recent trades.

Investors are positive about the India growth story, which is driving markets higher despite several headwinds on the external front.
Technically, for the last three sessions, the Nifty has consistently found resistance near the 17800 level and conversely taking support near 17625.

For Nifty, 17800 would be the key breakout level and above the same the index could move up to 17900-18000. On the flip side, a fresh round of selling is possible only after the dismissal of 17625. Below the same, the index could slip till 17500-17450.

The Nifty is trading near 78.6% retracement of the entire September decline, which is near 17800. Over there the index formed a bearish outside bar as well as an Engulfing Bear candle on October 25. Whereas, today, the index formed an Inside bar on the daily chart. The hourly chart shows that the index is forming a distribution below this key Fibonacci retracement for the last couple of sessions.

Structurally, the index is likely to trade with sideways to bearish bias in the short term. As long as the Nifty stays below 17800 on a closing basis it is likely to test 17500 in the short term.

Indian rupee closed 24 paise higher at 82.49 per dollar against previous close of 82.73.

Benchmark indices ended on positive note in the highly volatile session on October 27.

At Close, the Sensex was up 212.88 points or 0.36% at 59,756.84, and the Nifty was up 80.70 points or 0.46% at 17,737. About 1770 shares have advanced, 1548 shares declined, and 125 shares are unchanged.

JSW Steel, Hindalco Industries, Tata Steel, Adani Ports and Power Grid Corporation were among the top Nifty gainers, while losers included Bajaj Finance, Bajaj Finserv, Asian Paints, Bajaj Auto and Nestle India.

Among sectors, Metal, Power and Realty up 2-3 percent.

The BSE midcap and smallcap indices up 0.4 percent each.

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Dabur India was quoting at Rs 548.85, up Rs 16.75, or 3.15 percent on the BSE.

Bajaj Finserv reported mixed performance, led by a strong performance from BAF & BALIC while a muted performance from BAGIC. The company is actively working on digital initiatives that will help Bajaj Finserv achieve the next growth stage, emphasizing continuous innovation.

General insurance premium growth has moderated however the company is focusing on improving profitability which is a key positive.

The life insurance business is growing stronger due to its focus on product mix and innovation. We believe strong growth in the lending business and an improving outlook for both the insurance businesses will likely act as a positive trigger for
strong consolidated earnings going forward.

Ahluwalia Contracts (India) has secured orders for construction work of Amity Campus Hyderabad (Telangana) from Ritnand Balved Education Foundations worth of Rs 60 crore and construction of civil, structural and external development work of Muthoot Hospital from Muthoot Hospital worth of Rs 43 crore. The order inflow during the FY23 stood at Rs 3,114.72 crore, till date.

Ahluwalia Contracts India was quoting at Rs 445.10, up Rs 8.35, or 1.91 percent.

PNC lnfratech had received Rs 145.27 crore in August 2019, towards an arbitration award published in its favour, which was upheld by the Hon'ble High Court of Delhi vide its final judgement and order No. FAO(OSXCOMMI No. l74l2ol9 dated 26 July 2019, in one of the NHAI'S EPC projectsnamely 'widening and strengthening of NH-24 section from km 93.00 to 149.25 to four lane standards'.

NHAI filed a Petition for'Special Leave'in Hon'ble Supreme Court of lndia seeking to Appeal the said final judgment and order of the Hon'ble High Court of Delhi, in 2020. Accordingly, Company treated the said realized amount of Rs. 145.27 crore as a 'Contingent Liability' in its 'Books of Account' and reflected the same in Company's Audited Financial Statements of FY 2L &22.

Upon hearing the Parties at length, the Hon'ble Supreme Court of lndia dismissed the said Special Leave Petition on 2O.1O.2O22, in favour of the Company. Therefore, the 'Contingent Liability' of Rs. 145.27 crore being shown in the Company's Books of Account stands cleared and ceased.

PNC Infratech was quoting at Rs 257.20, up Rs 0.30, or 0.12 percent.