POST MARKET ANALYSIS 24 OCT 2024

POST MARKET ANALYSIS 24 OCT 2024

Here’s a more detailed breakdown of the morning momentum for Bank Nifty and FINNIFTY on October 24, 2024:

Bank Nifty Morning Momentum:

• Opening Levels: Bank Nifty opened slightly positive at ₹51,318, but it quickly showed mixed movement, fluctuating between a low of ₹51,201 and a high of ₹51,781.55 during early trading​.Despite some early optimism in the banking sector, the index faced significant resistance at higher levels, particularly near ₹52,000, which prevented stronger
• Market Sentiment: Initially, there was optimism driven by buying in the PSU bank sector and financial services stocks. However, resistance near the ₹52,000 level caused the momentum to slow down. Traders were cautious about global economic conditions, including concerns about inflation and geopolitical tensions.
• Key Support & Resistance: Traders noted a range of ₹51,200 as a critical support level and ₹52,000 as the resistance for the morning session. The banking sector remained resilient, with several stocks attempting to move higher, but faced selling pressure near these levels.
• Key Influences: Weak global cues, concerns over inflation, and rising geopolitical tensions led to cautious sentiment. The banking sector showed resilience, but global uncertainties kept traders hesitant.
• Sector Performance: Public sector banks and financial services saw buying interest, especially in the early trade. However, the market remained volatile due to external economic concerns​.

FINNIFTY Morning Movement:

• Early Trend: Similar to Bank Nifty, FINNIFTY started with a positive bias due to strong buying in key financial stocks like HDFC Bank and ICICI Bank. The index showed upward movement in the morning but also faced resistance at higher levels.
• Sector Performance: Financial services stocks saw some positive momentum, especially in the early hours, but were impacted by global cues. The index traded in a narrow range as traders awaited more data and clarity​.
• Movement: The Nifty Financial Services index also exhibited early buying interest from key financial institutions such as HDFC Bank and ICICI Bank. However, it faced resistance due to similar global concerns and domestic pressures, keeping the index’s movement restrained during the trading session.

Influencing Factors:

1. Global Market Cues: Weakness in global markets and concerns about global inflation led to hesitation among traders in pushing the indices significantly higher​.
2. Technical Setup: The charts indicated that Bank Nifty was facing strong resistance at higher levels, with support around ₹51,200. This led to a range-bound trade during the morning session, without a clear breakout​.

In summary, both indices showed positive opening momentum, driven by buying in key banking and financial stocks, but faced strong resistance that limited further gains in the morning. The market appeared to be cautious due to external economic factors, keeping both indices in a narrow trading range. Overall, both Bank Nifty and FINNIFTY showed a positive bias at the open, but the momentum was capped by resistance levels and macroeconomic factors. The market was cautious, reflecting the uncertainty in global markets, leading to a day of restrained trading in India’s banking and financial sectors.

On October 24, 2024, the Indian stock markets saw a mixed performance, with both the Sensex and Nifty 50 indices closing marginally lower. The markets were mostly flat due to declines in FMCG stocks, which offset gains in banking and financial sectors.

Key Index Movements:

• Sensex: Fell by 16 points (0.02%) to close at 80,065.16.
• Nifty 50: Dropped by 36 points (0.15%) to end at 24,399.

Top Gainers:

• Banking stocks performed well, leading the recovery in the indices.
• Kotak Mahindra Bank and ICICI Bank were among the leading gainers as the Nifty Bank Index rose by 0.57%.
• Other sectors that saw positive movement included the construction sector.

Top Losers:

• The Nifty FMCG Index fell by nearly 3%, dragged down by substantial losses in major stocks like Hindustan Unilever Limited (HUL) and ITC.
• The IT sector also saw slight losses, with Infosys and TCS contributing to a 0.19% decline in the Nifty IT index.

Mid-Cap and Small-Cap Indices:

• Both indices saw corrections, with the MidCap Index declining by 0.13% and the SmallCap Index falling by 0.72%. This broader market correction indicates that investor sentiment in smaller stocks was weaker than in blue-chip companies.

Despite the general market decline, the strength in the banking sector helped cushion some of the overall losses.

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