Nifty make itself volatile to break the RANGE

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What happened yesterday?             

Indian Market

Indian indices extended losses on Wednesday, weighed down by tepid September corporate earnings and continued foreign fund outflows. The BSE Sensex dropped 318.76, or 0.3%, to 81,501.36, while the NSE Nifty 50 slumped 86.05 points, or 0.3%, to 24,971.30.

• TRENT topped the laggards on Wednesday, with shares sliding 4%, followed by Mahindra & Mahindra and Infosys 

• Conversely, HDFC Life Insurance, Dr. Reddy's Laboratories and Grasim Industries were the top gainers.

• In corporate news, APL Apollo Tubes has raised 1 billion Indian rupees from the issue of commercial papers.

• Meanwhile, Indian non-banking finance company UGRO Capital has received a commitment letter from the US International Development Finance Corporation (DFC) for a $40 million loan.

FII net sold for -3435.94 crores

DII net bought for +2256.29 crores

US Market

US benchmark equity indexes closed higher Wednesday, with the Dow Jones Industrial Average notching a new record, as markets evaluated the latest corporate earnings.

The Dow rose 0.8% to 43,077.7, while the S&P 500 added 0.5% to 5,842.5. The Nasdaq Composite advanced 0.3% to 18,367.1. Utilities paced the gainers among sectors. Only communication services and consumer staples closed lower.

• In company news, United Airlines UAL shares jumped 12%, the top gainer on the S&P 500. Late Tuesday, the carrier logged third-quarter results that surpassed Wall Street's estimates as demand for air travel remained strong.

• Morgan Stanley MS was the third-best performer on the S&P 500, up 6.5%. The lender posted stronger-than-expected third-quarter results Wednesday amid higher asset levels and investment banking gains that reflected increased deal activity and initial public offerings.

• Cisco Systems CSCO shares rose 4.3%, the top Dow performer, as Citigroup upgraded the stock to buy from neutral and adjusted its price target to $62 from $52.

• ASML ASML shares dropped 6.4%, the worst performer on the Nasdaq, following a 16% slump in the previous session. On Tuesday, the Dutch chip equipment maker lowered the upper end of its fiscal 2025 sales outlook range.

• The US 10-year yield fell two basis points to 4.02%, while the two-year rate lost 1.4 basis points to 3.94%.

• West Texas Intermediate crude oil ticked 0.1% higher to $70.62 a barrel.

• Gold and silver rose 0.4% each to $2,689.8 per troy ounce and $31.89 per ounce, respectively.

What to expect today?   

• Asian market trading in mixed way where Japan in -0.52% and Hong Kong +1.08%
  US Futures trading flat -0.07%

• GIFT NIFTY trading higher at +0.20%, up by 50 points

• All the factors indicating a flat to gap up opening in the market.

NIFTY Technicals

In NIFTY high amount of call OI at 25,500 and put OI at 25000, PCR at 0.55. NIFTY FUT indicating SHORT BUILDUP. And in case of BANKNIFTY, PCR stays at 1 and FUT with LONG UNWINDING.

As we expected the way Nifty handled the divergence with enough volatility was very interesting to watch. Current week Nifty trading inside previous week candle high and low, likely an inside weekly candle formation. To get a clear idea on the range watch NIFTY FUT, range high 25,260.20 and range low 24,985.55. A decisive break above the range can decide the direction also 1hr candle should make a close above 25,190.80 to push higher.

INDIA VIX rose to 13.0525

 All the best for the day.