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  5. Market highlights | NIFTY50 negates bearish engulfing pattern, protects September month low

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Market highlights | NIFTY50 negates bearish engulfing pattern, protects September month low

Upstox
By Upstox News Desk

3 min read | Updated on October 18, 2024, 18:13 IST

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SUMMARY

The options data of the 24 October expiry saw highest build-up of call options at 25,000 strike, indicating resistance around this zone. Conversely, the put base was seen at 24,500 and 24,800 strike, suggesting support for the index around these levels.

Stock list

INFY
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IGL
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MGL
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AXISBANK
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MANAPPURAM
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NIFTY50 negates bearish engulfing pattern, protects September month low

NIFTY50 negates bearish engulfing pattern, protects September month low

Markets staged a strong recovery after a morning sell-off, snapping a three day losing streak. The NIFTY50 index dipped toward the 24,500 zone in the opening session but rebounded sharply, gaining over 1% from the day’s low to close at 24,850.

The rebound was broad-based with significant gains in sectors such as Private Banks (+1.9%) and Metals (+1.5%), while IT (-1.4%), FMCG (-0.5%) and Oil & Gas (-0.2%) remained weak.

On the daily chart, the NIFTY50 negated the bearish engulfing pattern from the 17 October and formed a bullish piercing pattern. This two-candles reversal signal shows the potential for further upside as the second candle closes above the mid-point of the previous bearish candle.

In the coming sessions, traders will want to monitor the high of the bullish piercing pattern. A close above this high would confirm the rebound, while a negative close could invalidate the bullish signal.

  • Top gainer and loser in NIFTY50: Axis Bank (+5.7%) and Infosys (-4.2%)

  • Top gainer and loser in NIFTY Midcap 100: Mazagon Dock Shipbuilders (+7.3%) and Supreme Industries (-3.2%)

  • Top gainer and loser in NIFTY Smallcap 100: Aditya Birla Real Estate (+6.4%) and Mahanagar Gas (-9.9%)

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Key highlights of the day

🖥️Infosys slumped over 4% after the company's earnings missed Street expectations. The company's net profit rose 2.2% sequentially to ₹6,506 crore, marginally missing street estimates. Despite the earnings miss, the company raised its revenue guidance to 3.75-4.5% from 3-4%.
⛽City gas distribution companies Indraprastha Gas and Mahanagar Gas slipped over 10% respectively, after government announced that it will reduce priority gas allocation to the companies. The allocation of gas to the distribution companies will be reduced to 50% form 70%. The companies said that the reduction in allocation will impact the profitability.
🏦Axis Bank (+5.7%) was in focus as the private lender’s net profit surged 18% YoY to ₹6,917 crore in September quarter. The sharp rise in earnings was led by higher lending income.
💸Manappuram Finance plunged 13% after the Reserve Bank of India barred its subsidiary Asirvad Microfinance and other NBFCs from disbursing loans. Asirvad Microfinance provides loans to low-income women. In FY24, the microfinance segment contributed 27% to Manappuram Finance’s total revenues.

Top traded futures contracts

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Top traded options contracts

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4 trading insights from NIFTY 200🔍

📉Open=High (Bear power): LTIMindtree, Bharat Dynamics, JSW Infrastructure, NHPC and ICICI Lombard

📈Open=Low (Bull power): Alkem Laboratories and Pidilite Industries

🏗️Fresh 52 week-high: Torrent Power

⚠️Fresh 52-week-low: N/A

And that's it for today's F&O recap! Get the full scoop on market trends and curated scans at https://pro.upstox.com/

See you on Monday!

Uplearn

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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