“Dalal Street initiated Samvat 2080 on a positive note, with all sectoral indices closing in the green during the Muhurat session. Notably, Nifty Mid-cap and Nifty Small Cap witnessed gains of 0.77% and 1.29%, respectively. However, this Monday brings two pieces of bad news: FIIs continued selling, totaling Rs. 190 crores after a Rs. 262 crore sell-off on Friday, and Moody’s cut the US debt outlook to negative. On a positive note, WTI oil prices remain low at $76 a barrel, bullish traders anticipate the end of the Fed’s tightening cycle with potential rate cuts in June, and Friday’s optimism on Wall Street suggests a successful “soft landing” for the US economy. The market’s resilience hinges on FIIs’ buying participation. Q2 results for GRASIM and MANAPPURAM are awaited, and Dalal Street will be closed on November 14th for Diwali Balipratipada. Attention now turns to US Inflation figures on Tuesday, with India’s CPI Inflation figures for October releasing on November 13th. Nifty faces hurdles at 19707, testing bulls’ commitment. The recommended trade suggests buying Nifty (19526) between 19400-19450, with targets at 19589/19707 and aggressive targets at 20000. For Bank Nifty (43997), a buy between 43700-43750 is advised, with targets at 44100/44500 and aggressive targets at 44750-44801. The chart of the day is bullish on Coal India, Ashok Leyland, IndusInd Bank, and L&T Financial. Additionally, the suggested stock to buy is Homefirst Finnance Company at an entry price of 951, targeting 1201, with a stop loss at 821 for a holding period of 0-365 days.”
– Prashant Tapse, Senior VP (Research), Mehta Equities.