Nifty indicators flash green, but resistance at 24,694 poses a challenge; what's in store for D-St on Wednesday

Market Overview:

The Nifty index gained 128 points, closing at 24,467. After a sluggish start, it rebounded sharply from the support zone of 24,150-200, showing resilience. The first half of the trading session was marked by volatility, but renewed buying interest in the latter half allowed bulls to assert control, driving the market upwards.

Technical Analysis:

The Nifty formed a bullish candle, reaching a five-session high following the establishment of a triple bottom in the 24,073-24,140 range. Technical indicators suggest a bullish short-term trend, with support likely in this range and resistance anticipated around 24,567-24,694, according to Deepak Jasani from HDFC Securities.

Corporate Earnings Updates:

L&T Q2 Results Preview:

Larsen & Toubro (L&T) is projected to report a 16% year-on-year increase in revenue for the September quarter, driven by strong execution in its infrastructure and energy segments. Estimated revenue is expected to range between ₹56,800 crore and ₹59,146 crore, with net profit for Q2FY25 anticipated to be between ₹3,200 crore and ₹3,590 crore, reflecting a slight decline to a potential increase of 11.4%.

Dabur India Q2 Preview:

Dabur India is expected to experience a subdued second quarter due to volume declines and distributor inventory corrections in the general trade channel. The company ceased primary sales in the last week of the quarter to facilitate inventory adjustments across categories.

Torrent Pharma Stake Sale:

The promoter of Torrent Pharma plans to sell up to 2.9% of its stake through a block deal scheduled for October 30.

Tamilnad Mercantile Bank Q2 Results:

The bank reported an 11% increase in net profits, totaling ₹303 crore for the July-September quarter, up from ₹273.51 crore in the same period last year.

US Market Update:

US stocks slipped amid a deluge of earnings reports and rising Treasury yields. The Dow Jones fell by 177.91 points (0.42%) to close at 42,209.66, while the S&P 500 decreased by 7.34 points (0.13%) to 5,816.18. The Nasdaq Composite saw a slight increase of 8.9 points (0.05%) to 18,576.088.

Honeywell Automation India Q2 Results:

Honeywell Automation reported a 5.6% decline in second-quarter profit due to sluggish demand, with profits falling to ₹115 crore from ₹122 crore year-over-year.

Gold Prices Rise Ahead of Dhanteras:

Gold prices increased by ₹300 to reach ₹81,400 per 10 grams, approaching record highs due to heavy demand from jewelers and retailers. Silver prices also rose by ₹200 to ₹99,700 per kg.

Hudco Q2 Results:

State-owned Hudco reported a 52% increase in consolidated net profit for the quarter ending September 2024, totaling ₹689 crore, compared to ₹452 crore in the same quarter last year.

Marico Q2 Results:

Marico Ltd reported a 20.27% increase in consolidated net profit, amounting to ₹433 crore for the September quarter, up from ₹360 crore a year ago, with a revenue increase of 7.6% to ₹2,664 crore.

Northern Arc Capital Q2 Results:

Northern Arc Capital reported a 24% rise in net profit to ₹96 crore for the second quarter ended September 2024, with total income increasing to ₹585 crore.

Technical Outlook for Tomorrow:

With Nifty indicators giving positive signals, the market may encounter resistance at 24,694. Traders should watch for potential developments and adjust strategies accordingly.