Trade Setup: Market Holds Steady Amidst Earnings Wrap-Up, Nifty Likely To Open With Mild Gains

The Nifty 50 index has seen minimal movement in the last two trading sessions but maintains a gradual upward trajectory, closing below the 19,450 mark on Wednesday. The index faced resistance at this level, a pattern consistent over the past three trading sessions. Despite this, the Nifty 50's intraday high of 19,463 marked the highest since October 2023.

As we approach the end of the September quarter earnings season and Samvat 2079, Thursday and Friday are expected to bring the curtain down on financial results. Over the past year, the Nifty 50 has gained 9%, with broader markets outperforming their large-cap counterparts.

Institutional volumes have remained low, a trend likely exacerbated by the impending holiday weekend. Foreign investors continued to be net sellers, while domestic institutions took on the role of net buyers.

The Nifty Bank attempted to breach the 43,800 mark on Wednesday but faced volatility due to its weekly options expiry, closing 150 points off the day's high.

Looking into the Futures and Options (F&O) market, Nifty 50's November futures saw a 0.3% decline in Open Interest, now trading at a premium of 47.35 points. In contrast, Nifty Bank's November futures added 11.9%, with a 2.87 lakh shares increase in Open Interest. The Nifty 50's Put-Call Ratio stands at 0.98, down from 1.07.

Delta Corp has entered the F&O ban list, joining GNFC, and adding another layer of complexity to the market dynamics.

For today's weekly options expiry, Nifty 50 call strikes between 19,450 and 19,600 witnessed Open Interest addition, with the 19,500 strike experiencing the maximum increase. On the put side, strikes between 19,300 and 19,450 saw an Open Interest addition, with the 19,400 strike leading the way. This suggests a potential Nifty 50 range between 19,400 and 19,500.

Stocks to Watch:

BHEL reports a net loss of Rs 238.1 crore, wider than last year, with revenue down 1.5% YoY.

Mazagon Dock Shipbuilders records a rise of up to 55.6% in net profit and declares an interim dividend of Rs 15.34 per share.

Pidilite Industries reports a 35.7% YoY increase in net profit and announces plans for a lending business.
United Spirits resumed dividend payments after a decade, with September quarter revenue slightly surpassing expectations.

Biocon: Signs definitive agreement with Eris Lifesciences to divest its dermatology and nephrology branded formulations business for Rs 366 crore.

GNFC approves a buyback of 5.46% of its outstanding equity at Rs 770 per share.

PFC disbursements are up 91.1% YoY, Assets under management up 19.3%, and Gross NPA at 3.67%.

In the global arena, most Asia-Pacific markets have opened higher, with the Nikkei 225 up 0.3% and the Topix flat. South Korea's Kospi, after a 3.2% drop in two sessions, currently trades little changed. Hang Seng futures indicate a positive start.

Wall Street continued its winning streak, with the S&P 500 gaining 0.1% and the Nasdaq closing higher for the ninth consecutive day.

As we head into the final trading days of the week, market participants are keenly observing the interplay of domestic and global factors that could shape the market landscape in the coming days.