06 Oct , 2022 By : Monika Singh
Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 were trading higher on Thursday, a day of weekly F&O expiry, amid mixed global cues and strong foreign flows BSE Sensex jumped 500 points or more than 1 per cent to 58578, while NSE Nifty 50 crossed 17400. Stocks of L&T, HCL Technologies, Sun Pharma, Reliance Industries, Infosys were among top Sensex leaders. On the flip side, Bajaj Finance, Housing Development Finance Corporation (HDFC), Hindustan Unilever Ltd (HUL), HDFC Bank, Kotak Mahindra Bank, IndusInd Bank were among top index draggers. Bank Nifty gained 0.45 per cent to trade at 39,285.
We remain cautious on IT Services and expect more legs to consensus EPS downgrade cycle (refer IT Services – Nexus of cost management, EPS surprise, dated 27 September 2022). Post 24% correction FYTD, tier I Tech plays are trading close to their five-year average 12m rolling forward P/E (-5% to 9%), while at 11-40% premium to pre-pandemic average. We see lack of positive triggers for tech stocks in the near term. We maintain Reduce on Wipro and SELL on Mphasis.
Standard deviation studies encourage us to look beyond and set 18115 as the near-term target. A close in the 17500 vicinity could be considered a confirmation signal towards this end, while also helping MACDF with a centre line cross over for the first time in almost one and a half months. Alternatively, a close back below 17300 would dilute the upside prospects
Nifty Put options OI distribution shows that 17,000 has highest OI concentration followed by 17,100 & 17,200 which may act as support for current expiry and on the Call front 17,500 followed by 17,600 & 17,700 witnessed significant OI concentration and may act as resistance for current expiry. Options data suggest an immediate trading range between 17,500 and 17,100 levels.In Nifty Call writing was witnessed at 17,500 , 17,550 & 17,600 ;while on Put side it was seen at 17,200 ,17,100 &17,000.
Bank Nifty had a decent gain when it closed for the day. On the daily chart, the index has closed above 50 EMA which is a bullish setup. The RSI has narrowed down its negative crossover. The trend looks positive. On the lower end, support is placed at 38500, resistance on the higher end is visible at 39500/40000.
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