Trade Setup: Market Shows Mixed Trends, Nifty Likely To Open Around 19,400

In a recent trading session, both foreign and domestic investors exhibited varying trends in the Indian cash market. While the Nifty 50 showed limited changes compared to the previous day's closing levels, the Nifty Bank emerged as an outperformer, marking significant gains in the last four trading sessions. Furthermore, F&O cues for the November 9 expiry and updates from prominent stocks promise an eventful Wednesday in the Indian financial landscape.

The Nifty Bank index has displayed remarkable strength, gaining over 1,000 points in the last four trading sessions. In a significant turn of events, the index has extended its gains for the year 2023, turning positive on Monday. These impressive developments in the banking sector are sparking interest among investors.

For the November 9 expiry, the Nifty 50's futures and options (F&O) segment provides valuable insights. The November futures of Nifty 50 registered a 0.4% reduction in Open Interest, translating to 48,950 fewer shares. These futures are now trading at a premium of 70.2 points, down from 74.75 points. On the other hand, Nifty Bank's November futures decreased by 1.3%, shedding 31,935 shares in Open Interest. Additionally, the Put-Call Ratio (PCR) for Nifty 50 dropped from 1.14 on Monday to 1.07.

Notably, GNFC remains the only stock on the F&O ban list, suggesting continued market volatility.

The Nifty 50 call strikes for Thursday's weekly options expiry are significant. Strikes ranging from 19,400 to 19,550 have seen an increase in Open Interest. The 19,850 Call option, which has been highlighted as a decisive level by market analysts, also experienced a boost in Open Interest.

On the Put side, Open Interest grew for Nifty 50 strikes between 18,950 and 19,250. However, the 18,800 strike Put witnessed a reduction in Open Interest.

Several prominent stocks are set to make headlines on Wednesday:

Hero MotoCorp: The company is collaborating with partners in the UK, Spain, and France to commence operations in the electric vehicle (EV) market by mid-2024.

InterGlobe Aviation: The airline expects to ground 30-35 more aircraft between January and March 2024, resulting in over 70 grounded aircraft by March 2024.

IRCTC: The company reported a 30.4% increase in net profit compared to the previous year, amounting to Rs 294.7 crore. Revenue also surged by 23.5% year-on-year, though EBITDA margin fell by 100 basis points. Internet ticketing revenue remained steady compared to the previous year.

Shree Cement: The company exceeded profit estimates due to contributions from the power segment, lower taxes, and a 10% increase in sales volume to 8.2 million tonnes. The board has also approved the establishment of a brownfield cement grinding capacity with an estimated capital expenditure of Rs 550 crore, slated for completion by September 2025.

Apollo Tyres: The company reported a significant surge in net profit, rising from Rs 179.4 crore to Rs 473.3 crore year-on-year. Revenue increased by 5.4% to Rs 6,279.6 crore. Operating profit witnessed a remarkable 63% rise to Rs 1,159.8 crore, with an EBITDA margin increase of 650 basis points to 18.5%.

Deepak Nitrite: While revenue decreased by 9.4% to Rs 1,778 crore, EBITDA increased by 12% to Rs 302 crore, and EBITDA margin improved by 320 basis points to 17%. Net profit also grew by 17% year-on-year, with the phenolics segment contributing to the improved performance.

Power Grid: For the September quarter, the company reported flat net profit and revenue compared to the previous year. However, the EBITDA margin expanded to 87.9% from 84.5%. The board also approved an interim dividend of Rs 4 per share.

Turning our attention to global markets, Asian markets have opened higher after a slight dip on Tuesday. Japanese manufacturers' business confidence improved for the first time since August, contributing to a 0.57% gain in the Nikkei 225 and a 0.1% rise in the Topix.

Futures on the Hang Seng indicate a positive start to the trading day, suggesting optimism in the Asian market.

In the United States, Wall Street closed mostly higher on Tuesday, with the S&P 500 and the Nasdaq marking their longest winning streak in nearly two years. The S&P 500 gained for the seventh consecutive day, while the Nasdaq recorded its eighth positive session. The S&P 500 increased by 0.3%, and the Nasdaq gained 0.9%, showcasing the resilience and positive sentiment in the American financial landscape.

As Wednesday unfolds, investors and traders will be closely watching Indian markets, assessing F&O cues, and tracking the performance of key stocks. The positive global cues further add to the overall optimism, indicating an eventful day in the world of finance.