Dear Trader…
Ahead of Fed Chair Jerome Powell’s speech at
Jackson Hole that has left traders and investors worried over further possible
interest hikes, Indian equity markets ended in the red for the second straight
session on Friday and extended losses for a fifth straight week.
Selling was seen across all major sectors. The
BSE benchmark Sensex fell 365 points or 0.56% to settle at 64,886 points, while
the broader NSE Nifty50 declined 172 points or 0.89% to end at 19,223.
The slide in domestic equities on Friday also
came after the minutes of the RBI’s latest policy meeting flagged near-term
risks to inflation due to a recent spike in food prices and a liquidity
overhang in the banking system. Investors now await Federal Reserve Chair
Powell’s speech at an annual gathering of global central bankers, due later on
Friday, for cues into the US central bank’s rate trajectory.
From the Sensex pack, L&T, JSW Steel,
IndusInd Bank, Power Grid, ITC, and M&M closed lower, while Bajaj Finserv,
Asian Paints, Bajaj Finance, Bharti Airtel, and ICICI Bank closed higher.
The market capitalisation of all listed companies
on BSE declined by Rs 1.93 lakh crore to Rs 306.74 lakh crore. The market
breadth was skewed in the favour of the bears. About 2200 stocks declined, 1444
surged, and 119 remained unchanged on the BSE.
Global Markets –
European shares edged
higher and the dollar held firm near an 11-week peak against major peers on
Friday as investors awaited remarks from the heads of the Federal Reserve and
European Central Bank at a conference in Jackson Hole.
The pan European
benchmark STOXX 600 index was last up 0.2% and on track for a 0.9% gain this
week, which would snap a three-week run of declines. Japan’s Nikkei tumbled 2%,
with Nvidia supplier Advantest the biggest drag, dropping almost 10%.
Wall Street futures
were pointing to a higher open, while MSCI’s broadest index of Asia-Pacific
shares sagged 1.2% overnight.
Rupee Weakens – The Indian rupee weakened
0.09% versus the US dollar, and quoted at 82.65 per dollar, tracking Asian
peers. The dollar index, which tracks the movement of the greenback against a
basket of six major world currencies, rose 0.12% to 104.1 level.
Nifty futures opened at 19329.95 points against the previous close
of 19395.60 and opened at a low of 19218.00 points. Nifty Future closed with an
average movement of 122.00 points and a decline of around 172.00 points and 19223.60
points…!!
On the
NSE, the midcap 100 index will rise 0.82% and small cap100 index is rise 0.41%.
At the
start of intra-day trading August gold opened at Rs.58743 fell from a high of
Rs.58869 points to a low of Rs.58696 with a decline of 10 points, a trend of
around Rs.58801 and September Silver opened at Rs.73317, fell from a high of Rs.73832
points to a low of Rs.73265 with a rise of 78 points, a trend of around Rs.73646.
Meanwhile, Investor caution is evident globally, as
concerns about potential rate hikes dominate the prevailing sentiment ahead of
the Jackson Hole meeting.
Furthermore, the minutes from the RBI MPC
meeting reiterated their dedication to managing inflation within the target
range, given the elevated domestic inflation levels. However, the expectation
of a rate hike remains subdued, as the current high inflation is perceived as
transitory.
Technically, the
important key resistances are placed in August Nifty future are at 19223
levels, which could offer for the market on the higher side. Sustainability
above this zone would signal opens the door for a directional up move with
immediate resistances seen at 19303 – 19404 levels. Immediate support is placed
at 19009 – 18808 levels.
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