Dear Trader –
Indian benchmark
indices rebounded sharply from the day’s low after buying action returned in
banks, auto, and IT counters.Shares of heavyweight Reliance Industries (RIL)
rose more than 1%, pushing the benchmarks higher.
The S&P BSE Sensex
shot back by over 900 points from the intra-day low of 69,920 and settled at
70,865.10, up by 359 points or 0.51%. Broader Nifty traversed 310 points to hit
the day’s high of 21,379.70 before closing at 21,376, up 158.95 points or 0.75%.Banking
gauge Nifty Bank ended 637.35 or 1.32% higher at 48107.90.
The market breadth
turned in favour of bulls with 38 stocks closing the session in the green. The
top gainers were Power Grid, Bharat Petroleum Corporation (BPCL), Britannia
Industries, Apollo Hospitals and HDFC Bank while the top losers were Bajaj
Auto, Bajaj Finance, Axis Bank, HCL Technologies and Cipla.
Here are 3 triggers
that led to today’s recovery:–
1) Global Markets – Asian markets ended mix with
Nikkei 225 index ending up as the top loser at 33,140.50, down by 535.47 points
or 1.59%. Hang Seng ended flat at 16,621.13 while China’s Shanghai Composite
settled 0.57% higher at 2,918.71.Despite closing with deep cuts on Wednesday,
US stock futures inched higher on Thursday.S&P 500 futures rose 0.71%,
while the Nasdaq 100 futures advanced 0.44%. Futures connected to the Dow Jones
climbed 0.45% at 4 pm India time.
2) Bond Yields – US yields continued to ease with the
10-year yield falling to 3.85% levels, its lowest in nearly five months as bets
of early interest rate cuts by the Federal Reserve aided sentiment. Tracking
them, Indian government bond yields also eased marginally on Thursday.
3) Buying Action – The recovery was led by
action returning in banks, IT, and auto counters, which account for major
weight share in Sensex and Nifty. All three indices were trading in the green
with IT stocks in the lead. Out of the 10 stocks in the Nifty IT index, 8 were
trading in the green.
Currency Watch – The Indian rupee fell on
Thursday, weighed down by year-end dollar demand from importers and risk
aversion spurred by a sharp halt in global equity rallies,Dollar demand from
importers is likely to stay buoyant heading into year-end, a foreign exchange
trader at a state-run bank said.”Mostly people square their positions at
this time, hence dollar demand will be there,” the report said quoting a
trader.The dollar index dipped slightly to 102.3 after climbing nearly 0.3%
overnight on Wednesday, while broader Asian currencies were mostly subdued.
Nifty futures opened at 21000.00 points against the previous close
of 21217.05 and opened at a low of 21060.00 points. Nifty Future closed with an
average movement of 319.70 points and decline of around 158.95 and 21376.00 points…!!
At the start of intra-day trading December gold opened at Rs.62412
fell from a high of Rs.62510 points to a low of Rs.62369 with a Decline of 24 points,a trend of around Rs.62391 and December
Silver opened at Rs.75155, fell from a high of Rs.75561 points to a low of Rs.75155
with a rise of 116 points, a trend of around Rs.75370.
Meanwhile,
After a subdued start,
the market reversed from the day’s low amid buy-on-dips strategy. However, the
overall trend is subdued. FIIs stayed muted ahead of festive break and global
market traded on a negative note ahead of announcement of the US GDP data
today. Some consolidation is warranted in the near term due to peak valuation.
A gradual rise in oil
prices along with concern over high domestic food inflation may have a
hindrance to the stretched rally of the last 2 months, he added.
Technically,
the important key resistances are placed in October Nifty future are at 21376 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 21404 – 21606 levels. Immediate support
is placed at 21202 – 21008 levels.
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