Tackling the DIVERGENCE

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What happened yesterday?             

Indian Market

NSE Nifty 50 index declined 0.3% to 25,055, as a drop in metals and automakers dragged Indian shares lower, with chances of a delayed domestic rate cut after a hotter-than-expected September inflation print dampening sentiment.

Eight of the 13 sub-sectors closed lower. 

CNXAUTO, who are heavily dependent on customers taking on bank loans, fell 0.8%.

CNXMETAL lost 1.4%, tracking a fall in global prices, as uncertainty about top consumer China's economic recovery weighed following a detail-thin stimulus announcement over the weekend.

Reliance Industries the second-heaviest stock on the Nifty 50 - fell 2% after reporting a drop in second-quarter profit on Monday after the markets closed.

HDFCLIFE closed 3.6% lower after reporting a lower value for new business (VNB) margin for the half year ended Sept. 30. The stock was the top percentage loser on the benchmark Nifty 50.

FII net sold for -1748.71 crores

DII net bought for +1654.96 crores

US Market

US benchmark equity indexes closed lower Tuesday as markets evaluated the latest batch of corporate earnings, while oil prices slumped.

The Nasdaq Composite fell 1% to 18,315.6. The Dow Jones Industrial Average and the S&P 500 dropped 0.8% each to 42,740.4 and 5,815.3, respectively, both retreating from Monday's record closings. Among sectors, energy saw the steepest decline, down 3%. Real estate led the gainers.

In company news, ASML shares tumbled 16%, the worst performer on the Nasdaq, after the company's fiscal 2025 sales outlook fell short of Wall Street's estimates. Separately, ASML said it published its fiscal third-quarter results ahead of schedule to ensure transparency after information relating to the quarter was "erroneously published" on its website.

West Texas Intermediate crude oil declined 3.9% to $70.92 a barrel. 

What to expect today?   

Asian markets are trading mostly in red, with Japan -1.71%

US Futures trading flat +0.03%

GIFT NIFTY is trading lower at -0.29% , down by 74 points

All the factors indicating a flat to gapdown opening in the market.

NIFTY Technicals

In NIFTY high amount of call OI at 25,200 and put OI at 25000, PCR at 0.56. NIFTY FUT indicating SHORT BUILDUP but in case of BANKNIFTY, PCR stays at 0.9 and FUT with LONG BUILDUP.

Analysing NIFTY chart we can see bullish and bearish context FVG at the same area and there is pennant formation too(see below chart). So today can be so interesting , how it tackles the divergence with BANKNIFTY.

INDIA VIX rose to 13  

 All the best for the day.