Given the pressure on key supports, markets have turned negative

The previous week saw market pressure, and looking at the Israel-Hamas position, all market confidence about new highs and the holiday season just vanished. Markets saw losses in four out of the five sessions and gains in just one. Even while a reasonable range of results have been announced and FPIs have continued to buy or sell throughout the result season, which has just started, there is no evidence of any negative outcomes, so there is no cause to be optimistic either.

NIFTY dropped 208.40 points or 1.06 percent to settle at 19,542.65 points, while BSESENSEX lost 885.12 points or 1.34 percent to conclude at 65,397.62 points. BSE100, BSE200, and BSE500 all saw losses in the wider markets of 1.18 percent, 1.20 percent, and 1.09 percent, respectively. While BSESMALLCAP, to put on a different face, actually reported gains, albeit little ones of 0.04 percent, BSEMIDCAP lost 1.31 percent.

The markets have lost their vigor, and the heavyweight stocks aren’t rising at all. Reliance will announce its results for the next week on Friday after the market closes. The key issue is whether or not that contributes to market growth.

To end at Rs 83.12, the Indian rupee increased 14 paisas, or 0.17 percent. The Dow Jones had a terrible week, winning on only two of the five trading sessions while losing on three. The last three days of the week saw three straight defeats. To finish at 33,127.28 points, Dow dropped 543.01 points, or 1.61 percent.

The issue from IRM Energy Limited opened and closed for subscription, as reported in the main market news. From Wednesday, October 18, to Friday, October 20, the offer for 1.08 crore shares with a price range of Rs. 480-505 was available. The issue was subscribed 27.05 times, including 44.73 times for the QIB component, 48.34 times for the HNI portion, and 9.29 times for the retail portion.

One topic would start on Wednesday, October 25, and end on Friday, October 27. The promoters are making a full offer to sell 242.85 lakh shares in the Blue Jet Chemicals Limited issue in the range of Rs 329 to Rs 346. The transaction will bring around Rs 840 crore.

The firm recorded 721 crore rupees in sales, 30.39 percent EBITDA margin, and 22.20 percent PAT margins. EBITDA was 219 crores in absolute terms, while PAT was 160 crores. The PE multiple, price range is 35.64–37.49, and the reported EPS for FY23 was Rs 9.23.

The biggest of the company’s three commercial divisions, contrast media, produces the chemicals used in MRI and CT scans. The firm’s major business sector is this one, and the top four players within, who together account for about 78% of the worldwide market, are in contact with the company. Making artificial sugar sweeteners, which are used in a variety of products including toothpaste, drinks, and even pharmaceuticals, is the second business segment. The third vertical is CDMO, where value-added goods are produced for global pharmaceutical companies.

There wouldn’t be any objections of the problem since it is a selling offer. However, the business is now expanding its capacity, which will be operational in the fourth quarter of FY24. The capacity would increase from the current 1,100 KL to around 1,500 KL as a result. They are also working on a bigger capex project that has begun but will take 18 to 24 months to complete, increasing the capacity to roughly 2,200 KL. This growth would result in the manufacture of more expensive compounds and greater value-added goods.

Shares are reasonably priced and provide stockholders with high potential for gains.

Tuesday of the next week is a trade holiday. The trading week would thus be limited to just 4 trading sessions. The fact that October futures expire on Thursday (October 26) increases volatility in a short week. NIFTY’s current value is only barely ahead of the series that is now running. Bulls now lead by only 19.10 points, or 0.10 percent. The series had 19,523.55 points before it started. The bears would be my choice if I had to place a wager on either the bulls or the bears winning the series. There is practically any carry-forward lead, and the bears are now gaining speed. Second, FPIs are really net sellers of around 16,176 crore so far in October, which is a bad fact. Finally, it seems that there is no immediate end in sight to the Israel-Hamas confrontation.

The next week will see more volatility due to the four trading sessions and series expiration. Bulls seem to have lost steam, and it’s still too early to add further pressure. Levels of 19,200 and 19,250 are looming huge, and despite receiving many supports recently, these levels are in danger of being broken this time. Nearer to 18,800–18,850 would be the next support level. On the BSESENSEX, similar support would be around 63,050-63,200.

In the next week, the plan would be to sell on any rallies and let the markets choose their own levels. Being daring could be a disadvantage. Only purchase should be made if supplies are very discounted. Selling and buying would be an easy strategy.