Indian Benchmark indices erased their initial losses but ended negative on Monday. Markets started the week with a cut. The Reserve Bank of India’s weekly statistical supplement feared the traders when it showed that India’s forex reserves declined to $532.66 billion, the lowest level since July 2020. 

“The short-term trend of Nifty is weak with high volatility. The emergence of sharp buying interest from near the lows could be a cheering factor for the bulls to make a comeback. Hence, one may expect Nifty to retest the hurdle of 17,400 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

Immediate support is placed at 17,050-17,100 levels, Shetti added.

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Indian Indices

The Sensex fell 200.18 points or 0.34% to 57,991.11 while the Nifty was down by 73.65 points or 0.43% to 17,241.00 at the close of trading on Monday. The Sensex moved in a high and low band of high and low of 58,125.01 and 57,365.68. There were 11 stocks advancing against 19 stocks declining on the index. The Nifty traded in a range of 17,280.15 and 17,064.70. There were 15 stocks advancing against 35 stocks declining on the index.

Broader Indices

The broader indices ended in red with the BSE mid-cap index down by 0.87% and the Small cap index up by 0.58%. The top gaining sectoral indices on the BSE were IT up by 0.91%, and TECK by 0.73%, while on the downside Consumer Durables by 1.43%, Power by 1.30%, Utilities by 1.12%, FMCG by 1.01% and Realty by 0.98% were the top losing indices on BSE.

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India VIX Index

Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, rose 4.31% to 19.62 on Monday.

SGX Nifty

The trends on SGX Nifty indicate a flat opening for the index in India with an 11.5 points loss. The Nifty futures were trading at 17,216.5 on the Singaporean Exchange at around 7:30 hours IST.

Support and Resistance levels

The key support level for the Nifty is placed at 17,110, followed by 16,980. If the index moves up, the key resistance levels to watch out for are 17,326 and 17,411, according to pivot charts.

US Markets 

The S&P 500 fell 27.27 points, or 0.7%, to 3,612.39 on Monday.

The Dow Jones Industrial Average fell 93.91 points, or 0.3%, to 29,202.88.

The Nasdaq fell 110.30 points, or 1%, to 10,542.10.

The Russell 2000 index of smaller companies fell 10.23 points, or 0.6%, to 1,691.92.

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Asian Markets

Asian markets ended lower on Monday. Japanese, South Korean, Taiwan, and Malaysia markets were closed for the holidays. The Hang Seng fell 2.95%.

European Markets

European markets ended mostly in red on Monday, UK’s FTSE 100 fell 0.51%, and France’s CAC was down 0.55%. On the upside, Germany’s DAX was up 0.16%.

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Major Headlines

Rupee hits all-time low of 82.69 against US dollar

The rupee fell 39 paise to an all-time low of 82.69 versus the US dollar in opening trade on Monday as high crude oil prices and risk-averse sentiment among investors weighed on the domestic currency.

India’s forex reserves dropped by USD 4.854 billion to USD 532.664 billion as on September 30, the Reserve Bank said on Friday. The reserves, which have been falling as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments, had declined by over USD 8.134 billion to USD 537.518 billion in the previous reporting week.

Adani Group may buy Jaiprakash’s cement unit for $606 million: Report

Adani Group is in advanced discussions with debt-ridden Jaiprakash Power Ventures Limited to purchase its cement production facility. Adani Group is looking to expand its cement, ports, green energy, and fast-moving consumer goods businesses and will raise $10 billion for the same. The conglomerate said last month that it wants to increase its cement production capacity to 140 million tonnes in five years and to invest 200 billion rupees in its recently acquired cement business. On Monday, Adani Enterprises’ stock ended in the red at Rs 3,253. The share price has surged nearly 60% in the past six months and over 111% in the past year.

TCS Q2 Results: Profit rises 8% to Rs 10,465 crore YoY, revenue jumps 18%

Tata Consultancy Services (TCS) on October 10 reported a consolidated net profit of Rs 10,465 crore for the quarter ending September 2022, a growth of 8.41% year-on-year from Rs 9,663 crore logged in the corresponding quarter of the previous year. Sequentially, the net profit increased by 9.93%. TCS said the revenue from operations grew by 18.01% year-on-year to Rs 55,309 crore as against Rs 46,867 crore in the same quarter last year. Sequentially, the revenue grew by 9.93%. The IT major’s operating margin came in at 24%, contracting 1.6% year-on-year. The company said its order book for the quarter was at $8.1 billion. Net cash from operations came in at Rs 10,675 crore or 102.3% of net income.

Bulk Deal data

AWARE SUPER bought 15,56,169 shares in HBL Power Systems Ltd at Rs 118 per share on the NSE.

AVESTHA FUND MANAGEMENT LLP bought 1,42,000 shares in PG Electroplast Ltd at Rs 146.79 per share on the NSE.

RATHOD SAAJAN S bought 3,00,000 shares in Autoline Industries Limit at Rs 114.9 per share on the NSE.

SUBHASH PHOOTARMAL RATHOD sold 8,07,000 shares in Asian Granito India Limit at Rs 57.47  per share on the NSE.

APL APOLLO HEALTHCARE PRIVATE LIMITED sold 1,69,150 shares in Atul Auto Limited at Rs 234.49 per share on the NSE.

DII and FII data

Foreign institutional investors (FIIs) have sold shares worth a net of Rs 2,139.02 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net of Rs 2,137.46 crore on October 10, as per provisional data available on the NSE.

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NSE F&O Ban

Indiabulls Housing Finance and India Cements have been placed under the F&O ban for October 11. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.