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Indian equity markets ended on a subdued note on 4 November, with benchmark indices slipping amid broad-based selling pressure. The Nifty closed below the psychological 25,600 mark at 25,597.65, down 165.70 points or 0.64%, while the Sensex shed 519.34 points to settle at 83,459.15.

Despite a mildly positive start, indices failed to sustain early gains as mixed global cues and profit-booking weighed on sentiment.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

DELHIVERY (Cmp ₹484.85)

P/E: 234.66,

52-week high: ₹489,

Volume: 10M.

PHOENIXLTD (Cmp ₹1767.70)

P/E: 227.92,

52-week high: ₹1902.10

Volume: 894.09K.

APOLLOTYRE (Cmp ₹522.35)

P/E: 50.28,

52-week high: ₹557.15,

Volume: 2.7M.

Stock Market Recap

Indian equity markets ended on a subdued note on 4 November, with benchmark indices slipping amid broad-based selling pressure. The Nifty closed below the psychological 25,600 mark at 25,597.65, down 165.70 points or 0.64%, while the Sensex shed 519.34 points to settle at 83,459.15. Despite a mildly positive start, indices failed to sustain early gains as mixed global cues and profit-booking weighed on sentiment.

Sectorally, weakness was visible across the board, barring telecom and consumer durables, which offered some resilience. Broader markets underperformed, with the BSE Midcap and Smallcap indices declining 0.2% and 0.7%, respectively, reflecting cautious investor sentiment in the broader space.

The market’s inability to hold intraday highs suggests a lack of conviction at higher levels. Going forward, traders may look for cues from global markets, crude oil trends, and upcoming earnings. Sustained support near 25,500 on the Nifty will be crucial to watch in the near term.

Outlook for Trading

On the charts, the trends have been largely oriented towards trading rather than investing. Hence , from a trading perspective we can note that on the intraday charts the rally beyond the cloud region has met with some profit booking. The rends remain muted and is now attempting a revival while the sentiment remains bruised. The start on a weak note has put the trends in a jeopardy as Daily chart of Nifty in the November series is finding difficulty to generate an upward momentum.

The trend that is emerging clearly suggests that the rally seen in the last week is now taking a breather and the long body red candle formation has ensured that the profit booking at 25300 mark could continue.

Hence, one should track the trends that are in progress as upmove holds itself above 26100 (Nifty Spot) would extend the bullish bias. Momentums on intraday charts are indicating that the prices could witness a resumption of buying interest after the recent sell off. With the rise taking a breather, one needs to factor some additional triggers like newsflow or corporate action.

With the bearish grip rearing its head once again since the Nifty moved below 25650 highlighted yesterday for a potential drop towards 25300 as per the Open Interest data a sharp fall is expected once key resistance levels break. With the Nifty closing near the Max Pain at 25600 clearly outlines the shift in sentiment that could now test the resolve of the trends to stage a comeback.

If we witness a 30-minute range break on Thursday we can consider trading on either side as the trends still remain tentative where we expect some resistances to kick in. As ranging market is in play, we need to be quick in profit taking as we the trend does not have sufficient steam to move strongly in either direction.

The readings from the Option Data suggests that PCR has moved to 0.61 on expiry, highlighting that the trends after some heavy selloff could probably hint at some excessive overbought levels being reached. A rebound could be due in the upcoming sessions.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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