Share Market HIGHLIGHTS: Sensex rallies 831 pts to 60138, Nifty ends near 17950; IndusInd Bank, Airtel rally

The month began on a volatile note till the bulls wrested the initiative on the back of buoyant PMI data & GST collections for last month. Despite the trends in e-way bills pointing towards higher GST collections in October ahead of festive demand, supply constraints in the Automotive sector kept the street cautious. The GST numbers, therefore, ignited the bulls and barring the Oil & Gas index, most of the sectoral indices registered handsome gains. S Ranganathan, Head of Research at LKP Securities

The Nifty has risen smartly to get past the 17900 level. If we can keep above this level for a couple of trading sessions, the uptrend should resume and take the index higher. On the downside, 17550-17600 has become a good support for the markets and until that does not break on a closing basis, it is safe to assume that the trend continues to remain on the upside. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Domestic equities rebounded sharply today after witnessing a sharp fall in the last couple of days. Positive global cues also supported strong recovery. Notably, strong buying in Financials, IT and metal stocks supported a strong rally today. Additionally, Nifty Auto, pharma and realty also witnessed healthy traction. Midcap and smallcap stocks equally witnessed strong recovery today. Notably, stellar 2QFY22 performance reported by SAIL aided Nifty metal today, while expectations of sustained earnings rebound in IT companies also generated interests among investors. Binod Modi, Head Strategy at Reliance Securities

The market witnessed some swift recovery from the support levels of 17600. Our research suggests, a significant breakout above the levels of 18000 could result in improvement of market breadth and the market can rally till the levels of 18250. We retain our cautious stance and advise the traders to refrain from building a fresh buying position until we see further improvement and market sustain above 18000. Vijay Dhanotiya, Lead of Technical Research at CapitalVia Global Research

Indian markets opened on a positive note following largely positive Asian markets as investors react to mixed China factory activity data for October. during the afternoon session, markets continued to trade in positive terrain due to buying in realty, telecom and metals sector. Buying in frontline stocks also pushed the key indices higher. Sentiments were upbeat as a monthly survey said that India's manufacturing sector activities gained further strength in October as companies scaled up production and stepped up input purchasing in anticipation of further improvements in demand. Also, the GST data released today posted the second-highest ever GST collection of Rs. 1.3 lakh crores, a growth of 24% YoY which further boosted the sentiments. Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

BSE Sensex rallied 839 points or 1.42 per cent to 60,156.55, while NSE's Nifty 50 index surged 260 points or 1.47 per cent to 17,930

The market gains in the past year may have made investing in equities look so easy, especially for the younger investors who entered the market during the lockdown phase. On the other hand, someone who entered the market between 2010-11 would have found the going tough over the subsequent year or so. Ultimately, it is all about having a time-tested philosophy and a well-honed process to back it, such that performance reflects skill and not luck factor. Because, as we all know that skill can be replicated while luck over time is a zero-sum game.

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India’s mfg PMI continued its expansion, increasing further to 55.9 in Oct from 53.7 in Sept - the fourth straight month in expansionary state. The improvement in headline PMI was led by strong gains in new orders, driving higher stock purchases and production and indicating some silver lining for better production ahead. Employment is still sluggish while steep increase in input costs (sharpest since early-2014) continues to pinch firms, squeezing their margins. Anecdotal evidence highlighted higher chemical, fabric, metal, electronic component, oil, plastic and transportation costs. Madhavi Arora, Lead Economist, Emkay Global Financial Services

Policybazaar has so far been able to attract new customers through unique 1.26 million visits during FY21 on its platform and maintained the leadership in the digital marketplace. However, any public health threat like the COVID-19 pandemic could adversely affect the business, financial condition, and results of operations. If we consider the overall business model of Policybazaar and its valuations over the past years then a NEUTRAL rating on this issue would be most suitable. Ravi Singh, VP & Head of Research, ShareIndia Securities

Policybazaar parent company PB Fintech’s Rs 5,625-crore IPO opened for subscription on Monday, 1 November 2021. The public issue comprises a fresh issue of equity shares worth Rs 3,750 crore, and offer-for-sale (OFS) of Rs 1,875 crore by existing shareholders of the company. In the primary market, Policybazaar shares were trading with a premium of Rs 150 over the upper end of the issue price of Rs 980 apiece, according to the people who deal in unlisted shares of the company. Market watchers say that PB Fintech has come up with its IPO when the traction for unicorns and startups is at its peak. PB Fintech is the leading online platform for insurance and lending products, leveraging the power of technology, data, and innovation.

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Sigachi Industries has reported a healthy 22% CAGR rise in revenues over FY19 to 21 to Rs 193 crore. During the same period, the bottomline has grown at 26% CAGR. Sigachi has also posted strong EBITDA margins and return ratios during this period. The company’s PAT  has remained in the range of 14-15%. According to estimates, the microcrystalline cellulose market size is projected to reach $115 million by next year driven by increasing pharmaceutical production, higher demand for processed food and cosmetics, and personal care products. Sigachi Industries, being one of the leading players, is well positioned to take advantage of the rising demand. At the higher end of the price band, Sigachi Industries is attractively priced at ~12.4 times FY21 EPS. The company does not have any listed peers. Given factors such as robust topline and bottomline growth, healthy margins, strong return ratios and good runway for growth, we remain ‘positive’ on the prospects of the issue. INDmoney

Manufacturing sector growth in India gained steam in October as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high. Panellists continued to report rising prices for several materials and transportation, with overall input costs increasing at the sharpest rate since February 2014. Subsequently, selling charges were lifted again. At 55.9 in October, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was in expansion territory for the fourth month in a row. Moreover, rising from 53.7 in September, the latest figure pointed to the strongest improvement in overall operating conditions since February.

In Samvat 2077, equity markets had a historical move as the benchmark indices touched new lifetime highs of 18000 and 62000 mark for the first time in history. Last year, the Sensex closed at 43,443 on the day of Diwali of Samvat 2076 and had gained 4,385 points or 11.23% in the past year. The Sensex has seen a record high of 62,245 in Samvat 2077, which was up 18,607 points or 42.6% from the previous Diwali. The key factors in driving the market were improved macro indicators, strong global liquidity, increased economic activities, significant pickup in vaccination, improvement in the consumption-related data, ease in monetary policy and sharp recovery in corporate earnings. 

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We expect buying demand to emerge around the key support threshold of 17500 in the upcoming truncated week and undergo a higher base formation that would make market healthy after a 20% rally seen over the past three months. Such intermediate episodes of breather make larger sutural up trend healthy as seen in previous bull markets. Thereby, the ongoing corrective phase should not be construed as negative, instead dips should be capitalized to build a quality portfolio over the medium term. 

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Nifty ATM call option IV is currently 19.03 whereas Nifty ATM Put option IV is quoting at 13.08. Index options PCR is at 0.90 v/s 0.90 & F&O Total PCR is at 0.81. Nifty Put options OI distribution shows that 17000 has highest OI concentration followed by 17500 & 17800 which may act as support for the current expiry. Nifty Call strike 18000 followed by 17800 witnessed significant OI concentration and may act as resistance for current expiry.

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"A pull back is in order, aiming 17833 initially but Nifty does not look primed for a vertical rise. While a push towards 17966- 18020, may be expected, the 18170-400 region appears could again prompt a distribution and aim for 17350, our downside objective that has been in play for a fortnight now. Meanwhile, a direct fall below 17600 today may not lead to a collapse, but in turn, lead to a consolidation in the 17500-350 band in the next few days, which could improve the chances of a sustainable uptrend."

~ Geojit Financial Services

Commodity prices traded weak with most of the commodities in non-agro segment witnessed selling in the last trading session of the week. Bullion prices pared weekly gains on stronger dollar while crude oil prices ended flat on mixed global cues. Base metals traded lower on eased worries over power shortage in China and demand concerns with rising CPVD cases in China.

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"The market went through a minor correction of above 3% in the Nifty during the last two trading days. The sell-off in the broader market was steeper with Nifty Midcap Index correcting 8% from the peak. The trigger for the correction  has been the sustained FII selling during the last 9 trading days following the downgrading of India by some leading foreign brokerages like UBS and Nomura who are concerned about excessive valuations. The depository data shows FII selling in equity at Rs 13550 cr, the highest for a month, so far, in 2021. The massive FII selling appears to have overwhelmed the newbie retail investors who have been merrily buying every dip. An important factor that might influence the market is the new IPOs hitting the market this week. Heavy oversubscriptions in attractive IPOs are draining money from the secondary market. So, FII selling and IPOs have emerged as headwinds for the market in the short-term. Investors may wait for the market to consolidate before taking fresh investment decisions," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

Domestic markets opened in the green on Monday morning. Broader markets were mirrored the up-move. Airtel was the top Sensex gainer on opening bell. 

Sensex gained 270 points in pre-open session on Monday while Nifty 50 neared 17,800. 

"On the technical front, Nifty 50 is currently trading at a very good support zone near 17,500 -17,700 and we believe markets may show some good recovery from these levels. the 18,000 level is an immediate hurdle on upside for Nifty 50," said Mohit Nigam, Head - PMS, Hem Securities.

"Nifty needs to reclaim 17,800 today for any meaningful recovery to happen or else any attempt by bulls might go in vain. One last gap, the island reversal gap, should get filled at 17,557+ put writers support at 17,500 makes it a possible bottom fishing zone for this week," said Rahul Sharma, Director & Head - Research, JM Financial.

'Nifty is expected to open flat to positive at 17700, up by 30 points.  Nifty has support at 17600 and 17450 levels and resistance at 17950 and 18050 levels. Traders are suggested to avoid long positions till the time Nifty trades above 18350,' Gaurav Udani, CEO & Founder, ThincRedBlu Securities.

Tata Motors, IRCTC, Aditya Birla Capital, Bajaj Consumer Care, Bayer Cropscience, Chambal Fertilisers & Chemicals, Indian Railway Finance Corporation, JBF Industries, Kalyani Steels, Lux Industries, Man Infraconstruction, Mold-Tek Technologies, Mold-Tek Packaging, Nilkamal, Parag Milk Foods, Punjab & Sind Bank, Relaxo Footwears, Rolta India, Rupa & Company, Shipping Corporation of India, Sun Pharma Advanced Research Company, Star Cement, Sterling Tools, Tata Motors – DVR, Venky’s (India), and VRL Logistics, among others were scheduled to announce their Jul-Sep quarter earnings.

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: The price of petrol and diesel were increased by oil marketing companies for the sixth consecutive day on Monday. Petrol in the national capital today costs Rs 109.69 per litre, up by 35 paise since yesterday. Meanwhile, diesel in the capital city was retailing at Rs 98.42 per litre, a 35 paise increase. Petrol and diesel rates were increased 23 times in October. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.https://www.financialexpress.com/market/commodities/petrol-and-diesel-price-november-1-fuel-rates-hiked-for-6th-day-straight-check-price-in-delhi-mumbai-here/2360807/

The Indian equity market finally seems to be witnessing the much-awaited correction, although the headline index is getting some support from the healthy performance of the financials. However, this is masking the weakness in the broader market, especially in the midcap and small cap space. While the respective indices have corrected by ~8-10%, we have seen much sharper cuts in several individual names. Over the past couple of months, we have been seeing more of small intermittent corrections within the market at sectoral level, rather than at the headline index level. The broader markets, however, had continued to do quite well, with expectations running quite high, leading to some froth getting built up. Past few days have seen some shakeout in the markets, which was necessary to make the markets healthier.

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BSE Sensex and Nifty 50 were set to open to in the positive territory on Monday, as suggested by trends SGX Nifty in early trade. In the previous session, Sensex tumbled 677.77 points or 1.13 per cent to close at 59,306.93. The NSE Nifty 50 index closed 185 points or 1.04 per cent in red at 17,671. A host of factors such as domestic macroeconomic data announcements, quarterly earnings, oil prices, rupee movement, and other global cues will be the major sentiment drivers for the equity market in a holiday-shortened week ahead. Due to the festival of Diwali, markets will witness a truncated three-day trading session this week.

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Stocks edged higher on Monday, led by a post-election jump in Japan’s Nikkei, though bonds wobbled and the dollar firmed as traders braced for central bank meetings in Britain, Australia and the United States to define the rates policy outlook. Japan’s Nikkei rose 2.3% to a one-month high after Prime Minister Fumio Kishida’s Liberal Democratic Party did better than expected at Sunday’s election, with exit polls showing the party easily retaining a majority.

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PB Fintech Limited, the parent company of Policybazaar, allotted 26,218,079 equity shares to 155 anchor investors and raised Rs 2569.37 crore ahead of the company’s proposed IPO at the upper price band of Rs 980 per equity share.

"We are seeing profit taking for the last two weeks and indications are pointing towards a further slide. Nifty has immediate support at 17,550 and its breakdown may push the index to the 17,350 zone. In case of any rebound, it would face hurdles around 17,950-18,100 levels. Keeping in mind the prevailing trend and excessive volatility, it’s prudent to maintain extra caution in the selection of stocks and prefer hedged positions," said Ajit Mishra, VP Research. Religare Broking.

SGX Nifty was in the green on Monday morning, hinting at a flat to positive start to the day's trade.

IPO investors are in for a busy week. Nykaa' IPO will close today while 3 new public issues will open for subscription.