Pre Market Report 13-Oct-2026

Market Summary — 13 October 2026

U.S. markets closed mixed: the Dow Jones rose, while the S&P 500 and Nasdaq fell. The presenter attributed the divergence partly to the Dow’s greater exposure to banks and the Nasdaq’s concentration in technology, particularly AI-related stocks. Major U.S. banks were due to report before the next session.

Asian markets were mostly lower. South Korea’s market fell about 6%, with AI-related stocks cited as a source of nervousness.

The U.S. 10-year Treasury yield eased from a recent high of 5.35% to 5.19%. The presenter said the decline could reduce concern about further rate hikes and ease pressure on Indian markets.

Indian inflation came in at about 5.42–5.44%, compared with an expectation of roughly 5.4%. The presenter considered this negative, though the fall in U.S. yields might limit its effect.

The rupee strengthened by more than 1%. Foreign institutional investor (FII) sales were reported at about ₹1,700 crore, less than the sharp market decline might have suggested, while domestic institutions bought nearly twice that amount. AMFI data indicated continued mutual-fund inflows, with SIP contributions at a record high.

The presenter attributed Nifty’s decline mainly to derivatives positioning. Nifty futures moved about 350 points from intraday high to low despite, in the presenter’s view, no major negative news. Broader markets—including mid-caps, small-caps and Nifty Next 50—were higher, and advancing stocks outnumbered declining stocks.

Near-term outlook

The Nifty had failed to hold 22,500, and GIFT Nifty did not indicate a clearly positive opening. The presenter expected volatility on the weekly expiry and saw 22,200–22,500 as a likely near-term range.

Derivatives and Technical Observations

The presenter suggested that options positions built around swings in prior sessions may have amplified price action, particularly near expiry:

• After the previous Thursday’s fall, traders may have sold calls.
• Following Friday’s rebound, they may have covered calls and sold puts.
• Profit-taking during Monday’s rise may then have pressured traders who had sold puts, contributing to further selling.

The Nifty had declined for eight consecutive weeks, followed by only a modest rise the prior week. Over the last two sessions, the presenter saw a pattern of higher highs and higher lows. The key short-term check was whether the previous day’s low would hold.

Stocks, Earnings and Events

HDFC Bank, Axis Bank and ICICI Bank were scheduled to report on Saturday. The market’s reaction was expected on Monday, as Tuesday was a public holiday.

The presenter noted that HDFC Bank was down about 30% year to date and speculated that a good result might prompt short covering. As a hypothetical, a 5% rise in HDFC Bank—described as having more than 10% weight in the Nifty—could add over 100 points to the index. This was conditional on strong results and a positive share-price reaction.

TCS was cited as an example of a stock that rose nearly 5% despite results the presenter characterized as not extraordinary.

The presenter said a sell-off in AI-related stocks might benefit Indian markets, but noted there was no concrete evidence for that outcome.

Instruments and References

• Indices and markets: Dow Jones, S&P 500, Nasdaq, South Korean market, Nifty, GIFT Nifty, Nifty futures, Nifty Next 50, mid-cap and small-cap markets.
• Stocks and sectors: HDFC Bank, Axis Bank, ICICI Bank, TCS, U.S. banks, technology and AI-related stocks.
• Other assets and data: U.S. 10-year Treasury note, Indian rupee, mutual funds and SIPs, and foreign and domestic institutional flows.
• Timing: Weekly Nifty expiry; U.S. bank results that day; Indian bank results on Saturday, with the market reaction expected Monday; Tuesday public holiday.

Disclosure and Sources

Disclosure: The report was presented as sponsored by Delta Exchange. No explicit “not financial advice” disclaimer appeared in the subtitles.

Presenter and sources: PR Sundar. Sources cited in the report included market-price and flow data and AMFI data.