..... . VALI disclosures . .....: 21/10/26, intraday news/Benchmark indices SENSEX and Nifty fell significantly from day's high to trade in the red on October 21 due to various reasons, including profit booking.

Wednesday, October 21, 2026

21/10/26, intraday news/Benchmark indices SENSEX and Nifty fell significantly from day's high to trade in the red on October 21 due to various reasons, including profit booking.

At 12:19 am, the Sensex was down 406.64 points or 0.55% at 73,446.26, and the Nifty was down 164.25 points or 0.71% at 22,728. About 735 shares advanced, 3,128 shares declined, and 157 shares were unchanged.

Key reasons behind market decline

1) Profit booking

Profit booking emerged at higher levels as Sensex fell 1,200 points from day's high while Nifty was trading below 22,750-mark.

In the broader market, while the mid-cap indices fell around 1% each, the small-cap trackers shed more than 1%. On the sectoral front, only five indices were well in the green.

In the 50-stock index, ICICI Bank and Reliance Industries, up around 2% each, lent the most support while Bajaj Finance and Eternal limited the gains. Eternal was down almost 2% ahead of its earnings for the September quarter.

The Nifty IT index continued to outperform its sectoral peers and was up more than 2%, driven by gains in Infosys, Tech Mahindra, and Tata Consultancy Services. The Nifty Cement gained the most after the IT index, largely supported by the rise in UltraTech Cement. The Nifty Oil & Gas index was up 0.6%, mostly on account of gains in Reliance Industries. Among the losers, the Nifty Auto fell over 1% to be the worst hit. All constituents of the index fell, with Sona BLW Precision Forgings down more than 3% and TVS Motor Co., Eicher Motors, and UNO Minda down around 2% each.

In some earnings-led moves, Gallantt Ispat fell more than 7% after its consolidated net profit for the September quarter fell 32% on year to Rs 60.5 crore. The stock was the top loser in the Nifty 500. Further, ABB India fell after its Swiss parent reported a 2% fall in net income for the quarter ended September. ABB India was down almost 5%, among the top laggards in the Nifty 200 universe.

2) Elevated crude prices

Brent crude oil futures hovered above $110 per barrel as the US and Iran continued their strikes against each other in the Strait of Hormuz and this is likely to keep market participants on edge. "We're knocking the sh*t out of them," US President Donald Trump said at a campaign rally in Kansas. In the near term, "...with Brent crude prices and US bond yields remaining elevated, the market is likely to remain under pressure", V.K. Vijayakumar, chief investment strategist at Geojit Investments, said in a note.

Higher oil prices are a challenge for India, which imports most of its requirements, as they add to the import bill, strain the country's fiscal deficit and hit corporate profits.

3) Technical reason

Nifty is taking strong resistance at 23,100 and needs to cross it decisively for any bullishness to return to the markets, said analysts.

"On the higher side key level to watch is Monday's high of 23,175. A move above the same will signal extension of the last two weeks pullback and open upside towards 23,500 levels in the coming sessions being the 50% retracement of the entire recent decline from 24,774 to 22,180.

"However, failure to reclaim Monday's high would signal corrective consolidation in the range of 23,175 to 22,500. Within the consolidation 22,800 is the immediate support area being recent breakout area. While 22,500-22,600 being the major support area from short term prospective," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"For day traders, 22,800-22,750/73,600-73,500 would act as key trend zones. As long as the market trades above these levels, the pullback trend is likely to continue. On the downside, the market could retest the 22,600–22,500/73,600–73,300 zone if it break below 22,750/73,500. On the other hand, if the market moves above 23,200/74800, sentiment could improve, and it could move towards 23,300–23,500/75100–75500," said Shrikant Chouhan, Head Equity Research, Kotak Neo.

4) India VIX rises 7.5%

India VIX, the volatility gauge, rose 7.5% on October 21, which indicates market participants expect short-term pressure.

Report by J. Jagannath

Source: Network18

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Wednesday, October 21, 2026

21/10/26, intraday news/Benchmark indices SENSEX and Nifty fell significantly from day's high to trade in the red on October 21 due to various reasons, including profit booking.

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22/10/26, Indian Rupee vs US Dollar

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