NIFTY50

The Nifty 50 index experienced a volatile week in early October 2024. It started with a rise following the Reserve Bank of India’s (RBI) decision to maintain interest rates and hinted at future rate cuts, pushing the index above 25,180. However, this initial optimism faded as the week progressed.

By the end of the week, Nifty 50 declined by 0.2%, closing around 25,000 points. This marked the fifth consecutive session of losses, as the market was influenced by several external factors, including rising crude oil prices and escalating geopolitical tensions in the Middle East. Additionally, global market pessimism, especially with investors reacting to fluctuations in crude oil prices and uncertainties in international markets, played a role in this downturn.

The technical outlook shows that Nifty found support around the 24,753 level, but resistance is expected near 25,230. The formation of a bearish candle with a long upper shadow indicates that any retracement upward could be temporary. The oversold conditions, however, may trigger a short-term pullback.

BANK NIFTY

The Bank Nifty index had a tough week in early October 2024, aligning with the broader market’s downward trend. After an initial rise following the Reserve Bank of India’s decision to maintain interest rates, the index briefly gained strength. However, this optimism faded as the week progressed due to negative global cues, including rising crude oil prices and geopolitical tensions, particularly in the Middle East.

The index faced pressure due to concerns about the broader economic environment, which led to a selling spree. The pessimism was largely driven by external factors, with investors showing caution amidst rising oil prices and the uncertain global economic outlook.

Despite the challenging performance, analysts believe that the banking sector could see a recovery in the near term, given its historically strong performance in October. Bank Nifty tends to perform well during this month, showing consistent gains in past years, although current global uncertainties may cloud the short-term outlook.

Top Performing Sector of the week:-

The Nifty Pharma was top performing sector this week

Major gainers from sector include:-

Divi’s laboratories: up by 13.21%

Ipca Laboratories: up by 10.97%

Glenmark: up by 7.7%

Granules: up by 5.99%

Worst Performing Sector of the week:-

The Nifty FMCG was worst performing sector of the week

Major losers include:-

Britannia Industries: down by 3.67%

Nestle India: down by 3.32%

ITC: down by 3.05%

Godrej Consumer: down by 2.05%

Important News:-

HAL Becomes 14th Maharatna: Hindustan Aeronautics Limited (HAL) was granted Maharatna status, joining the ranks of India’s most significant public sector enterprises
Kalyan Jewellers Q2 Update: Kalyan Jewellers reported a 39% increase in revenue due to robust growth in same-store sales, reflecting the company’s positive trajectory in the retail jewelry market
Godrej Properties Expansion: Godrej Properties announced the acquisition of six new land parcels in Q2 FY25, aiming to develop ₹9,650 crore worth of housing projects amidst high demand in the real estate sector
DMart Q2 FY25 Results: Avenue Supermarts (DMart) reported a net profit increase of 5.77% YoY, with revenues rising 14.41%, signaling a steady performance in India’s retail sector
Star Health Data Breach: Star Health Insurance faced a data breach, leading to a $68,000 ransom demand after confidential customer information was leaked

Weekly Update-11 October 2024