Short-covering continued on the Nifty 50 on Monday, carrying on from where the index left off on Friday. However, the session was anything but smooth, as the Nifty fell below the 19,000 mark, made an intraday low of 18,940 before reversing and closing 200 points above those levels.

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The Nifty 50 rose by 93 points on Monday, of which, nearly 63 points came from the two index heavyweights - HDFC Bank and Reliance Industries.

With today's move, the Nifty 50 has risen 290 points in the last two trading sessions. Despite that, the index is down 2.5% for the month of October. This will only be the second October in the last decade, when the Nifty 50 has given negative returns. The last instance of a negative October for the Nifty was back in 2018, when the index fell 5%.

Shrikant Chouhan of Kotak Securities believes that the momentum on the index may continue till 19,200 - 19,225 levels as long as it sustains above the 19,000 mark. The index has formed a bullish candle on the daily chart and is holding an uptrent continuation, which is largely positive, he said.

The short-term trend of the Nifty 50 is positive but rangebound, said Nagaraj Shetti of HDFC Securities. He expects the present bounce to continue till the next resistance level of 19,250 and above that, 19,450 in the near-term. Immediate support is seen at 19,050.

The Nifty 50 ended 93 points higher on Monday, 63 of which came from the two index heavyweights - Reliance Industries and HDFC Bank.

While this would be the second negative October for the Nifty 50 in a decade, for the Nifty Bank, it will be the first! The last instance of the index declining in the month of October was back in 2012, when the index fell 1.6%. In percentage terms, this will also be the worst October for the index since 2009, when the index had declined 4.2%.

On Monday, the Nifty Bank closed above the 43,000 mark for the first time in four trading sessions. The index has gained 800 points over the last two trading sessions, thereby trimming their losses for the month to 3.5%.

Kunal Shah of LKP Securities said that in case the Nifty Bank manages to hold on to the 43,000 mark, there is potential for further gains towards levels of 43,500 - 43,800. Immediate support for the index is at 42,800, while resistance on the upside is seen at 43,500.

What Are F&O Cues Indicating?

Nifty 50's November futures added 0.9% and 92,550 shares in Open Interest. They are now trading at a premium of 80 points compared to 84.1 points earlier. On the other hand, Nifty Bank's September futures added 5.4% and 1.27 lakh shares in Open Interest. Nifty 50's Put-Call Ratio is now at 1.09 from 0.96 earlier.

No stocks are currently in the F&O ban period.

Nifty 50 on the Call side for the November 6 expiry:

For this Thursday's expiry, the Nifty 50 call strikes between 19,150 and 19,300 have seen addition in Open Interest, while the 19,200 strike has witnessed some shedding.

Nifty 50 on the Put side for the November 6 expiry:

On the put side, the Nifty 50 strikes between 18,950 and 19,150 have seen Open Interest addition for this Thursday's expiry.

Let us take a look at the stocks that added fresh long positions on Monday, meaning an increase in both price and Open Interest:

Lets take a look at the stocks that added fresh short positions on Monday, meaning a decrease in price but increase in Open Interest:

Here are the stocks to watch out for ahead of Tuesday's trading session:

Tata Motors: Arbitral tribunal rules in favour of Tata Motors with respect to claims for the Singur manufacturing unit. The tribunal has asked the West Bengal Industrial Development to pay Tata Motors ₹766 crore plus interest at 11%. Arbitral proceedings on the Singur unit issue end.

Marico: Reports domestic volume growth of 3% year-on-year, while consolidated revenue declines 1%. India business is resilient in a subdued demand environment. Management expects EBITDA margin to expand by 200 basis points in financial year 2024. Advertising spends to continue to be a long-term growth driver. September quarter earnings were largely in-line with expectations.

DLF: Net profit up 30.6% from last year to ₹622.8 crore, while revenue rises by 3.5% to ₹1,347.7 crore. EBITDA up 5.9% from last year to ₹462.4 crore, while margin expands by 80 basis points to 34.3% from 33.5%.

TVS Motor: September quarter revenue of ₹8,144.6 crore in-line with expectations of ₹8,184 crore. Net profit of ₹536.6 crore also meets estimates of ₹520 crore. EBITDA at ₹900 crore versus expectations of ₹894 crore. EBITDA margin at 11.1% expands 90 basis points year-on-year and higher than the 10.9% estimate.

Blue Star: Revenue of ₹1,890 crore is in-line with expectations of ₹1,845 crore. On a year-on-year basis, revenue grew by 19.5%. EBITDA rose 42.7% year-on-year to ₹122.7 crore and was also higher than the estimate of ₹107 crore. EBITDA margin expanded by 110 basis points to 6.5%. Net profit rose 66.2% from last year to ₹70.8 crore and higher than estimates of ₹56 crore.

GMR Airports: Net loss of ₹190.4 crore from loss of ₹197.1 crore. Revenue up 30.3% to ₹2,0635 crore from ₹1,583.6 crore last year. EBITDA margin at 35.2% from 29.6%. Total passenger traffic up 25% to 26.5 million in the September quarter.

APL Apollo Tubes: Net profit of ₹203 crore rises 35.1% year-on-year and mostly in-line with estimates of ₹208 crore. Revenue of ₹4,630 crore rose 16.7% from last year and marginally higher than the estimate of ₹4,565 crore. EBITDA grew by 40.2% from last year to ₹325 crore and in-line with the ₹331 crore estimate. EBITDA margin rises 110 basis points from last year to 7%.

Castrol India: Net profit up 3.8% year-on-year to ₹194.4 crore, while revenue rises 5.5% to ₹1,183 crore. EBITDA margin narrows by 20 basis points to 22.7% from 22.9% last year.

Foreign investors continued to remain net sellers in the cash market on Monday, while domestic investors were net buyers.

First Published:Oct 30, 2023 5:25 PM IST