Trade Setup: Nifty Likely To Open With Deep Cuts As Market Wraps Up Volatile Week

In the lead-up to Diwali, Indian markets have witnessed a week of consolidation marked by intriguing twists and turns. The Nifty 50, after reaching intraday highs of 19,423 in the first two days, navigated a narrower 60-point range over the subsequent sessions. As the week concludes, the index is on track for its second consecutive weekly advance, showcasing resilience amidst global uncertainties.

The Nifty 50 has been range-bound through the week, yet it managed to accumulate gains of nearly a percent. Foreign investors turned heavy sellers on Thursday in the cash market, while domestic investors maintained their position as net buyers. Meanwhile, the Nifty Bank, after snapping a six-week losing streak last week, is on course for its second straight weekly gain, closing in on the elusive 44,000 mark.

In the derivatives space, Nifty 50's November futures witnessed a significant uptick, adding 3.3% or 3.67 lakh shares in Open Interest on Thursday. The Nifty 50's Put-Call Ratio stands at 0.99, up from 0.98, indicating a nuanced market sentiment. Notably, Chambal Fertilisers and MCX have joined the F&O ban list, aligning with GNFC and Delta Corp.

For the upcoming weekly expiry on November 16, the Nifty 50 call strikes of 19,400 and 19,500 have seen increased Open Interest, along with the 20,000 and 21,000 strikes. On the Put side, strikes between 18,800 and 19,400 have garnered attention, with the 18,000 Put witnessing the maximum addition.

As the week concludes, several stocks are poised to make headlines on Friday:
Bajaj Finance successfully completed a QIP issue, raising Rs 8,800 crore. Major institutional players, including SBI MF, Morgan Stanley Asia, ICICI Prudential MF, and Nippon India MF, secure substantial stakes.

Aditya Birla Fashion reports a net loss of Rs 200 crore, a stark contrast to the net profit of Rs 29 crore during the same period last year. Revenue stands at Rs 3,226 crore, with a year-on-year EBITDA margin decline of 300 basis points to 10%.

Ashok Leyland commits to a Rs 1,200 crore investment in "Switch" for expanding its product portfolio, Research and development, and operational enhancement.

Aurobindo Pharma recorded a robust 26% revenue growth in the September quarter, surpassing estimates. Margins reached a multi-quarter high at 19%, with the US market contributing 47% to overall sales.

Zee Entertainment posts a 20.4% year-on-year revenue increase to Rs 2,437.8 crore, outperforming estimates. Ad revenue, impacted by a busy cricket season, declines by 3%, while subscription revenue rises by 8%.

Piramal Enterprises reports a 19.7% decline in Net Interest Income to Rs 750 crore, with provisions increasing by 10.6% since June.

ICICI Bank receives approval from the Reserve Bank of India to make ICICI Securities a wholly-owned subsidiary.

Muthoot Finance registers a Net Interest Income of Rs 1,858.4 crore, slightly below estimates, with a net profit of Rs 991 crore. Assets Under Management see a 20.6% YoY increase to Rs 69,002 crore.

Torrent Power achieved a 9.2% increase in net profit to Rs 525.9 crore, with revenue growing by 3.8% to Rs 6,960.9 crore.

Rail Vikas Nigam posts flat revenue, but net profit rises by 3.4% YoY to Rs 394.3 crore.

While the Indian market braces for Diwali celebrations, global cues are indicative of a cautious approach. Asian equities opened lower on the final trading day of the week, with the Nikkei 225 and South Korea's Kospi registering declines. Futures on the Hang Seng predict a subdued start to the trading session.

On Wall Street, a multi-day winning streak was halted after Fed Chair Jerome Powell's statement about potential rate hikes to control inflation. The S&P 500 and Nasdaq ended 0.8% and 1% lower, respectively.

The GIFT Nifty is trading with a discount of more than 100 points from Nifty Futures Friday's closing rate, indicating a gap-down opening for the Indian market.

As the market closes on Samvat 2079, investors remain vigilant amidst a complex global landscape. The Nifty 50's ability to maintain gains in a week marked by consolidation bodes well for the upcoming festive season. Investors are now looking ahead to the new Samvat with a mix of anticipation and caution, navigating the uncertainties that lie ahead.