October 31, 2023 / 09:07 AM IST
Sensex Today | Prashanth Tapse, Senior VP (Research), Mehta Equities:
Good news emerged on this Tuesday morning as oil prices rose by 3% in overnight trade, reaching $82.50 per barrel, driven by reports of a restrained ground invasion of Gaza by Israel. Against this backdrop, the global stock market is experiencing a rally. Despite a shaky start, Nifty bulls regrouped at lower levels, and the benchmark rebounded strongly, indicating a “lack of bearish conviction. The strategy for the day is to buy during any corrective declines.
Our chart of the day is bullish on Canara Bank, Indian Hotel, PNB, and Coal India in the case of intraday weakness with an inter-week perspective. However, there is a significant risk to our stock markets as investors brace for a potential threat with FIIs selling crossing Rs. 30,131 crores in October.
Additionally, Wednesday will be significant as the FOMC outcome will be revealed, with a 98% likelihood of rates remaining unchanged, potentially impacting the odds of a December rate hike, currently standing at 24%. Key catalysts going forward include Auto Sales data for October on November 1st and US non-farm payroll data on November 3rd.
Nifty options data suggests a trading range of 18,500-19,500, with maximum Call OI at 19,500 and 19,200 strike prices, making 19,500 a crucial resistance zone. Maximum Put open interest is at 19,000 and 18,800 levels, with Call writing at 19,300 and 20,000 strike prices and meaningful Put writing at 19,000 and 19,100 strike prices.
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