Pre-market Setup for Wednesday: Things to know before opening bell

On October 3, the BSE Sensex saw a decline of 316 points, closing at 65,512, while the Nifty50 also dropped 110 points, ending at 19,529 amid significant volatility. This led to the formation of a bearish candlestick pattern with a minor lower shadow on the daily charts, signaling a lower high and lower low formation. Additionally, the index settled below the 50-day Exponential Moving Average (EMA) placed at 19,560.

Looking ahead, experts suggest that the level of 19,480 is expected to serve as a pivotal "make or break" point for the Nifty. If there is a decisive decline below 19,480, it might trigger heavy selling in the market. On the upside, 19,600 will continue to remain a significant resistance level to watch.

In contrast, the broader markets, represented by the Nifty Midcap 100 and Smallcap 100 indices, outperformed the frontline indices, with gains of 0.2 percent and half a percent, respectively.

Key support and resistance levels on Nifty:

• Support levels: 19,489, 19,455, and 19,400.

• Resistance levels: 19,599, 19,633, and 19,687.

For Nifty Bank:

The Bank Nifty remained rangebound with a negative bias on October 3, closing 185 points lower at 44,399 and forming a bearish candlestick pattern with a lower shadow on the daily timeframe. The index stayed below both the 50-day and 20-day EMA but found support at an upward sloping support trendline.

Experts suggest that as long as the Bank Nifty does not sustain above the 44,700 – 44,800 zone, weakness in the index is expected to continue. On the downside, the Bank Nifty could slip towards 44,000 – 43,800.

Key support and resistance levels for Bank Nifty:

• Support levels: 44,279, 44,203, and 44,080.

• Resistance levels: 44,526, 44,603, and 44,726.

In terms of options data:

Call options data:

• The maximum Call open interest (OI) was at 19,700 strike with 1.05 crore contracts.

• The maximum meaningful Call writing was seen at the 19,600 strike, adding 62.01 lakh contracts.

Put option data:

• The maximum Put open interest (OI) was at 19,500 strike with 81.87 lakh contracts.

• The maximum meaningful Put writing was at the 19,300 strike, adding 17.76 lakh contracts.

Stocks with high delivery percentage:

• Stocks showing high delivery percentage include Oracle Financial, Bharti Airtel, Britannia Industries, Max Financial Services, and SRF, indicating investor interest in these stocks.

Market Build-up:

• A long build-up was seen in 52 stocks, including Mahanagar Gas, Marico, Polycab India, Shriram Finance, and Coforge.

• A long unwinding was observed in 34 stocks, including Maruti Suzuki India, MCX India, Balkrishna Industries, Bharti Airtel, and Glenmark Pharmaceuticals.

• A short build-up was noted in 76 stocks, including Coromandel International, Indiabulls Housing Finance, India Cements, Dalmia Bharat, and Siemens.

• Short-covering was witnessed in 26 stocks, including Apollo Tyres, Navin Fluorine International, IRCTC, Federal Bank, and State Bank of India.

Bulk deals:

Several bulk deals took place in the market; for detailed information, you can refer to the bulk deals section.

Investors meeting on October 4:

• Mahindra & Mahindra and Divgi TorqTransfer Systems are scheduled to interact with analysts and institutional investors on October 4.

Stocks in the news:

• Updater Services will list its equity shares on the BSE and NSE on October 4, with an issue price of Rs 300 per share.

• Maruti Suzuki India has received a draft Assessment Order for FY20, with proposed additions or disallowances amounting to Rs 2,159.7 crore.

• HDFC Bank has made key organizational changes, with Arvind Kapil heading the mortgage business, and Arvind Vohra leading retail assets.

• Raymond has approved an investment of up to Rs 301 crore in Ten X Realty, a step-down wholly-owned subsidiary.

• Adani Enterprises saw an increase in shareholding by Abu Dhabi's International Holding Company (IHC) from 4.98 percent to 5.04 percent.

• Avenue Supermarts reported standalone revenue from operations of Rs 12,308 crore for Q2 FY24, up 18.5 percent YoY.

• South Indian Bank reported gross advances at Rs 74,975 crore for Q2 FY24, up 10.3 percent YoY.

• Hero MotoCorp will commence deliveries of the Harley-Davidson X440 on October 15.

• Various other stocks witnessed important developments; for detailed information, you can refer to the Stocks in the News section.

Fund Flow:

• Foreign institutional investors (FII) offloaded shares worth Rs 2,034.14 crore, while domestic institutional investors (DII) purchased Rs 1,361.02 crore worth of stocks on October 3.

Stocks under F&O ban on NSE:

• Indiabulls Housing Finance has been added to the F&O ban list for October 4.

Please note that this information is provided for reference and informational purposes and does not constitute investment advice. It is advisable to consult with certified experts before making any investment decisions.