Summary of the Day's Market Performance

Market Overview

• Sensex: Declined 423.49 points (-0.55%) to close at 76,619.33.

• Nifty: Dropped 108.60 points (-0.47%) to settle at 23,203.20.

• Midcap & Smallcap Indices: Ended flat.

• Sectoral Highlights:

  • Losers: IT and Bank indices fell 2% each.

  • Gainers: Oil & Gas, Power, FMCG, PSU, Capital Goods, Realty, and Metal gained 1% each.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-3,318.06 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹2,572.88 crore (Net Buyers)

Continued FII selling weighed on the market, but DII support provided some cushion.

1. Market Trend:

   • Volatility persisted, with benchmarks retreating after three days of gains.

   • Weakness in IT and banking heavyweights due to earnings pressure dragged the indices lower.

2. Sector Strength:

   • Strength in stocks like Reliance, ITC, and L&T limited broader declines.

3. Weekly Recap:

   • Market Performance:

     • Indices have fallen 3% in two weeks, marking their second straight weekly loss.

     • Nifty IT dropped 6%, its largest weekly decline in a year.

   • Broader indices defied the trend, closing marginally in the green.

4. Strategy Advice:

   • Mixed market sentiment calls for a "sell on rise" strategy. During earnings season, the focus remains on stock-specific opportunities.

What is a "Sell on Rise" Strategy?

• This trading approach involves selling stocks during price rallies, especially in volatile or bearish markets, to capitalize on temporary gains while minimizing downside risk.

Key Stock Movements and News

• Top Gainers:

  • BPCL, Reliance Industries, Hindalco Industries, Nestle India.

• Top Losers:

  • Infosys, Axis Bank, Shriram Finance, Kotak Mahindra Bank, Wipro.

1. Tech Mahindra:

   • Q3 net profit surged 92% YoY to ₹983 crore. Sequentially, profit fell 21.36% due to a one-time income in the previous quarter.

2. Wipro:

   • Q3 net profit rose 4.5% QoQ to ₹3,354 crore, exceeding estimates. Operating margins hit a 3-year high, and an interim dividend was announced.

3. Paytm:

   • Top executives settled alleged SEBI norms violations for ₹3.32 crore.

4. Chemical Stocks:

   • GHCL, RCF, and Fertilisers & Chemicals Travancore rallied up to 9%, fueled by rising global soda ash prices.

5. Indus Towers:

   • Added to CLSA’s ‘High Conviction Outperform List’ with a 62% upside potential, citing significant reductions in overdue payments from Vodafone Idea.

1. Reliance Industries: Resilience amid market volatility underscores its strength.

2. Tech Mahindra: Strong YoY profit growth is worth watching despite sequential decline.

3. Wipro: Record operating margins and robust Q3 performance boost investor confidence.

4. Indus Towers: The positive outlook from CLSA highlights growth potential.

5. GHCL: Beneficiary of global soda ash price hikes, driving momentum in chemical stocks.

Markets ended lower after three days of gains, with weakness in the IT and banking sectors leading to declines. Mixed earnings season results and persistent FII selling added to the pressure. Broader indices displayed resilience, offering stock-specific opportunities. With the market sentiment reflecting a tussle between bulls and bears, it is advisable to adopt a "sell on rise" strategy while focusing on earnings-driven plays like Wipro, Reliance, and Indus Towers.

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