Dear Trader –
As investors await a key policy decision from the
US Federal Reserve later in the day, Indian equity indices closed in the red
for the second straight session on Wednesday, dragged by index heavyweight HDFC
Bank after the country’s top private lender flagged a hit to its asset quality
post its merger with HDFC Ltd.
The 30-share BSE benchmark Sensex declined 796
points or 1.18% to settle at 66,800. The broader NSE Nifty Future plunged 207
points or 1.02% to end at 19,972.
Meanwhile, the market capitalisation of all
listed companies on BSE declined by Rs 2.34 lakh crore to Rs 320.66 lakh crore.From
the Sensex pack, HDFC Bank, JSW Steel, and Reliance Industries were the top
laggards, falling 2-4%. UltraTech Cement, Maruti, Tata Steel, and Wipro also
ended lower, while Power Grid, Asian Paints, Sun Pharma, Axis Bank, and NTPC
closed higher.
Among individual stocks, SJVN shares closed 7%
higher after the firm signed an MoU with Power Finance Corporation to fund Rs
1.19 lakh crore renewable energy projects.
The market breadth was skewed in the favour of
the bears. About 2,207 stocks declined, 1,476 gained, and 120 remained
unchanged on the BSE.
Global Markets –
Stocks struggled for headway on Wednesday as
surging oil prices stoked inflation and set the scene for the Federal Reserve
to project interest rates staying higher for longer.Japan’s Nikkei 225
fell 0.6%, while South Korea’s Kospi edged down 0.3%. Hong Kong’s Hang Seng
dipped 0.3%, while the Shanghai Composite shed 0.3%. European stocks were up
0.4% and US equity futures were flat.
US Treasury yields
rise – US Treasury yields rose, helping the 10-year yield trade near
a level not seen in about 16 years as investors awaited updates from the
Federal Reserve’s two-day September meeting.The yield on the 10-year
Treasury rose just around 2 basis points at 4.339%, near its highest level
since 2007. The 2-year Treasury yield added more than 1 basis point to 5.079%.
Oil Declines – Oil prices fell by
more than $1 on Wednesday. Global benchmark Brent crude futures fell by 90
cents, or 0.95%, to $93.48 a barrel. US West Texas Intermediate crude futures
shed 0.91%, or 82 cents, to $89.67 a barrel.
Rupee Gains – The Indian rupee
rose on Wednesday as likely dollar sales by the Reserve Bank of India and
easing crude oil prices prevented the currency from hitting a record low.
The rupee closed at 83.0725 against the dollar as compared with 83.2675 in the
previous session on Monday.
Nifty futures opened at 20050.00 points against the previous close
of 20178.85 and opened at a low of 19931.00 points. Nifty Future closed with an
average movement of 229 points and a decline of around 207 points and 19972.35 points…!!
On the NSE, the midcap 100 index will decline 0.28% and small cap100
index is decline 0.88%.
At the start of intra-day trading October gold opened at Rs.59222 fell
from a high of Rs.59292 points to a low of Rs.59109 with a decline of 97 points,
a trend of around Rs.59185 and October Silver opened at Rs.72284, fell from a
high of Rs.72765 points to a low of Rs.72170 with a rise of 115 points, a trend
of around Rs.72684.
Meanwhile,
The domestic markets remained under pressure due
to rising US bond yields and a stronger greenback. Concerns reigned over
upcoming FED policy, interest rate trajectory and rising oil prices, Bank
Nifty underperformed on Wednesday due to the rising cost of funds and reduction
in deposits leading to moderation in net yield.
Technically,
the important key resistances are placed in August Nifty future are at 19972 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 20008 – 20108 levels. Immediate support is placed at 19880 –
19808 levels.
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