“Crude oil prices continue to command the risk premium as the conflict between Israel and Gaza is far from over, with tension escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about potential oil supply disruptions from the region. API forecasted decline in crude oil reserves by 4 million barrels last week, ahead of the weekly inventory data from EIA, which also prompted a buying in the counter. We expect crude oil prices to remain buy on dips counter supported by US and Chinese economic data. The middle eastern concern also has added to risk premium. WTI December Finds support around $85 and Resistance stays around $92,” said Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas.

British consumer price inflation (CPI) unexpectedly held at an 18-month low of 6.7% in September and remained the highest of any major advanced economy, official data showed on Wednesday, raising the possibility of another rise in interest rates, reported Reuters.

“USDINR CMP- 83.2650 (spot) Indian Rupee declined on Wednesday amid weak domestic markets and a jump in crude oil prices. We expect Rupee to trade with a slight positive bias as diplomatic efforts to contain the conflict in the Middle East may boost global risk sentiments. Softening of the US Dollar may further support the domestic currency. However, surge in global crude oil prices may cap the upside. Any further escalation in geopolitical tensions in the Middle East may weigh on Rupee at higher levels. Traders may take cues from housing market data and Beige Book from US. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.60,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

The share price of L&T Technology tanked 5.35% to Rs 4,366.40 during the intra-day trade on Wednesday after the company lowered its revenue growth guidance for the current fiscal.

HDFC Bank, Bajaj Finance, ICICI Bank, Reliance Industries and Tata Motors are the most active stocks on the NSE.

Cipla, Dr Reddy’s labs, Tata Motors, Sun Pharma and HDFC Life Insurance are among the top gainers on the NSE Nifty 50, during the intra-day trade on Wednesday.

The Nifty PSU Bank index fell 1.32% during the intra-day trade on Wednesday. Central Bank of India tanked 3.38%, while Punjab & Sind Bank, UCO Bank, Indian Overseas Bank, Union Bank and Bank of Maharashtra plunged over 2% each.

Shriram Vijayaraghavan has been appointed as the Chief Operating Officer (COO) of Avalon Technologies. “The Board of Directors of the Company have appointed Mr Shriram Vijayaraghavan as Chief Operating Officer (COO) of the Company effective October 18, 2023, said the company in a regulatory filing.

“The ongoing geopolitical tensions and the upcoming festive season in India are likely to boost gold demand in the country. Gold is seen as a safe-haven asset during times of uncertainty, and the ongoing war in Ukraine and the rising tensions between the US and China are likely to drive investors toward gold. In addition, gold demand in India typically rises during the festive season, as people buy gold jewellery and coins as gifts. The upcoming festive season, which includes Diwali and Dhanteras, is expected to be particularly strong for gold demand, as consumers have been saving up during the pandemic.”

– Veer Mishra, Co-founder of Plus

The Bank Nifty index shed as much as 450 points to 43,959.65 during the intra-day trade on Wednesday. Axis Bank, HDFC Bank, ICICI Bank and Kotak Mahindra Bank plunged over 1% each.

IRM Energy IPO opened for public subscription today and will close on Friday, October 20, 2023. The price band for its public issue at Rs 480-505 per equity share of face value Rs 10 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 545.40 crore from the IPO. Ahead of the public issue, IRM Energy shares’ GMP rose to 13.27%.

“COMEX Gold prices closed marginally higher on Tuesday, paring early gains as robust US economic data boosted the yields and dollar. The yield on the 10-year US Treasury note extended gains to above 4.8%, as the Retail sales in the US advanced 0.7% mom in September 2023, following an upwardly revised 0.8% rise in August and beating forecasts of a 0.3% advance. Meanwhile, US manufacturing production rose 0.4%, while Industrial production went up 0.3% mom in September, beating expectations. However, intensifying conflict in the Middle East might bolster haven demand, with hopes for a diplomatic resolution deteriorating after a deadly explosion in Gaza. Today Eurozone CPI, US housing data and a slew of Fed officials speeches will be in focus,” said Ravindra Rao, CMT, EPAT, VP – Head Commodity Research, Kotak Securities.

“The tragic incident in the Gaza hospital has confounded the already confused developments. We are in uncharted territory. While hoping that things won’t get worse let us look at the broad trends. In spite of the tragic geopolitical developments, globally markets are resilient. There are two main reasons for this. One, the US economy continues to be strong and this is supporting the mother market and thereby other markets, too. Two, the market view is that the Fed will succeed in soft landing the US economy and avert a recession. Back home in India the resilience of the Indian economy and improving macros are supporting the market. The recent experience is that geopolitical developments will not impact the markets for long. For instance, the market is ignoring the ongoing Ukraine war. Even while remaining vigilant, market weakness can be used to buy high quality stocks, particularly in sectors like financials, automobiles and capital goods,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The USD-INR futures contract for October 27th displayed a narrow trading range. Based on the daily technical chart, it is evident that the pair is trading above its moving average trend-line support level of 83.20, and the RSI remains above the 50 level. An analysis of the technical setup reveals that the MACD is indicating negative divergence, but the pair continues to hold above the 83.20 level. According to the daily technical chart, the pair finds support in the range of 83.20 to 83.05, while resistance is situated between 83.45 and 83.66. We anticipate that if the USD/INR rises above 83.30, it may experience a substantial uptrend towards the levels of 83.50 to 83.80,” said Rahul Kalantri, VP Commodities, Mehta Equities.

The NSE Nifty 50 opened at 19820.45, up 0.04%, while the BSE Sensex opened at 66,473.74 up 45.65.

Wipro, ICICI Bank, Kotak Mahindra Bank, IDFC, IDFC First Bank, Tata Elxsi and Bajaj Finance are among the top stocks to watch during Wednesday’s trading session.

“Bank Nifty opened gap up however was unable to capitalize on the gains and it corrected intraday. However, the dip is likely to witness buying interest in the xone of 44350 – 44300 where support in the form of the key hourly moving averages are placed. we expect the pullback in bank nifty towards 45,000 from short term perspective. On the downside 44,100 – 44,000 shall act as a crucial support, ” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

“Nifty opened with a gap up and consolidated between the 19,820-19,840 range for major part of the day before closing at 19,812, up 80 points. The Put-Call Ratio (PCR) has fallen to 1.20 on October 17 (today) from 1.44 on September 29, indicating call writers’ strength. Nifty, however, has risen 0.88% during the same period but has failed to garner support from the bulls. The level of 19,850 acted as a strong resistance for Nifty yet again. A strong move above 19,850 levels with short covering support at 19,800 Strike is likely to take the Index until 20,000 levels. A break below 19,700 can further intensify the selling pressure in Nifty,” said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

“In yesterday’s trading, Nifty surged, but buyer caution prevailed due to heightened Middle-East tensions. A noteworthy positive was Nifty’s broad-based upward movement, breaking a three-day losing streak. The featured stocks of the day are Dixon Technologies, Zomato, IRCTC, Titan, and Coal India, with a bullish stance on Zomato, recommending long positions at CMP 114 with targets at 121/143 and more aggressive one-year targets at 175, and a stop at 69. The market also observed increased US bond yields and foreign institutional investors turning buyers. Eyes are on President Joe Biden’s Middle-East visit, Q2 results, and technical analysis, indicating Nifty’s resistance at 20,000 and a Volatility Index at 10.69,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The NSE has added SAIL, Balrampur Chini Mills, BHEL, Indiabulls Housing Finance, India Cements, Delta Corp, GNFC, Hindustan Copper, Manappuram Finance, and MCX India to its F&O ban list for October 18, 2023.

Foreign institutional investors (FII) purchased shares worth net Rs 263.68 crore, while domestic institutional investors (DII) added shares worth net Rs 112.55 crore on October 17, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $88.62, up 2.2%, while Brent crude prices are trading at $91.71, up 2.01%, on Wednesday morning.

US Dollar Index (DXY) which measures the value of the dollar against a basket of six foreign currencies traded up merely 0.02% at 106.27.

Wall Street’s major indexes ended broadly in red on Tuesday. The tech-heavy Nasdaq Composite slipped 34.24 points, or 0.25%, to 13,533.75. The S&P 500 fell 0.43 points, or 0.01%, to 4,373.20, while the Dow Jones Industrial Average added 13.11 points, or 0.04%, to 33,997.65.