Market today: US elections, Q2 results, Sagility IPO opens, Jio eyes IPO

While the market closely eyes the US presidential elections, corporate earnings and macroeconomic data will also be on radar

Share market today: As investors gear up for another market session, they will closely watch the battle between Republican Donald Trump and his Democratic rival Kamala Harris.

 

The uncertainty around who will be the next President of the US is worrying not just Wall Street but global markets as well. On election eve in the United States, the presidential race is deadlocked.

 

As per reports, weekend Iowa polls showed Harris has a surprise 3-point lead over Trump in the typically Republican-leaning state.

 

On Monday, the US markets closed in the red with the Dow Jones down 0.61 per cent, S&P 500 down 0.28 per cent, and Nasdaq Composite down 0.33 per cent.

 

 

Asian markets are also trading mixed today. At the last count, China's mainline CSI 300 was up 1.41 per cent, Shanghai was flat with a negative bias, Hong Kong's Hang Seng was down 0.77 per cent and Japan's Nikkei was up over 1 per cent.

Domestic market

Benchmark indices--Sensex and Nifty-- are expected to open lower amid mixed global cues. Around 6:56 AM, GIFT Nifty futures were down 51.65 points at 24,063.

 

In the previous session, uncertainty surrounding the US elections took a toll on Sensex and Nifty50. BSE Sensex shed as much as 941.88 points or 1.18 per cent to settle at 78,782.24. Similarly, NSE Nifty50 ended lower by 309 points or 1.27 per cent to settle at 23,995.35.

 

Today, the Q2 results release of Dr Reddy's Labs, GAIL India, Mankind Pharma, Oil India, PB Fintech, Titan, and others will be eyed. Investors will also digest the Q2 outcome of Gland Pharma, JK Paper, ABB India and other companies released on Monday.

 

In the primary market, Sagility India Ltd's initial public offer (IPO) will open for application today.

 

Also, billionaire Mukesh Ambani targets a 2025 Mumbai listing for his telecom business Jio, valued by analysts at over $100 billion, and plans to launch his retail unit's initial public offering (IPO) much later, two people familiar with the matter said. READ MORE

 

On the economic front, after an eight month low, growth in India´s manufacturing sector revived. The HSBC final India manufacturing Purchasing Managers´ Index (PMI), compiled by S& P Global, rose to 57.5 in October from 56.5 in September.

Business Standard BFSI Summit

The Business Standard BFSI Insight Summit is slated to take place from November 6-8. It will garner key figures from India’s financial sector, including top regulators, banks, NBFCs, and insurance firms, at a mega expo and convention for insights and discussions.

 

Speakers include RBI Governor Shaktikanta Das, IRDAI’s Debasish Panda, RBI’s T Rabi Sankar, Chief Economic Adviser V. Anantha Nageswaran, KV Kamath from NaBFID & Jio Financial Services, and First Global’s Devina Mehra, among several other notable speakers. Track updates here.

Global cues

Apart from US elections, investors will also keep an eye on September quarter results.

 

Meanwhile, as per CME's FedWatch Tool, investors were largely pricing in a Federal Reserve interest rate cut of 25 basis points (bps) at its policy announcement on Thursday, showing markets pricing in a 98 per cent chance of a cut, with only a 2 per cent chance the central bank keeps rates steady.

 

On the data front, the US trade data for September, and the S&P Global composite and services PMI Final for October will be eyed.

 

In the Asia-Pacific region, China's Caixin services PMI for October will be on the radar.

Crude oil check

Oil prices dipped on Tuesday with Brent crude oil futures down 0.20 per cent at $74.93 per bbl.

Here's how analysts view today's (November 5) trading session

Jatin Gedia, research analyst, Sharekhan

On the daily charts, we can observe that the five-day consolidation range has broken down suggesting resumption of the down trend. On the downside, the Nifty is likely to drift towards 23,600 – 23,650 zone where the 40-week average is placed. On the upside, crucial resistance is placed at 24,368.

 

Nifty Bank is likely to trade within a range of 52,500 – 50,500 and trade with a negative bias. Crucial support is placed at 50,720 – 50,600 while resistance is placed at 51,750 – 51,800.

 

Rupak De, senior technical analyst, LKP Securities

The Nifty has corrected below 24,000 as the index slipped from its recent consolidation pattern. Sentiment will likely remain weak in the short term or until it decisively moves above 24,100. It might extend its correction towards 23,650 and lower on the lower end. On the other hand, a decisive move above 24,100 could trigger a rally towards 24,500.

 

Jigar S Patel, senior manager - technical research snalyst, Anand Rathi Shares and Stock Brokers

Going forward, we anticipate a trading range between 24,500 and 23,500 for Nifty. Notably, the 23,500 level marks a significant support area, aligning with the 200-day Exponential Moving Average (DEMA), a widely observed long-term support indicator. Meanwhile, the 100-day DEMA, currently around 24,450, has served as a notable resistance level over the past 6-7 sessions, preventing any sustained upward momentum. Thus, one may expect the 23,500 mark may attract buying interest, potentially stabilising prices as investors look for value opportunities near this technical support.

FII, DII update: How much did FIIs, and DIIs buy or sell on November 4?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 4,329.79 crore.

 

Conversely, the DII's were net buyers of equities worth Rs 2,936.08 crore.