Dear
Trader…
State-owned firms reported gains a day after Prime Minister
Narendra Modi was sworn in for a rare third term.The BSE benchmark Sensex
declined 203 points or 0.27% to settle at 76,490. The broader NSE Nifty Future
dropped 95.15 points or 0.41% to end at 23,230.
In Monday’s trade, the Sensex hit a day’s high of 77,079,
while the Nifty fo touched 23,410.
The IT index fell 1.83%, making it the top sectoral loser.
Tech Mahindra, Infosys, Wipro, TCS, and HCLTech declined by 1%-3%, becoming the
top losers on the Sensex.
The drop in IT shares, which earn a significant portion of
their revenue from the US, followed stronger-than-expected US monthly jobs
data, dampening expectations of early Federal Reserve rate cuts.
Nifty Metal index fell 0.4%, hurt by a stronger US dollar
following the jobs data and mixed trade readings from top consumer China. A
strong US dollar makes metals more expensive for buyers using other currencies.
Despite the headline indices ending in the red, the market
capitalisation of all listed companies on the BSE surged by Rs 1.59 lakh crore
to reach Rs 425.08 lakh crore. Market breadth favored the bulls, with about 2,590
stocks gaining, 1,416 declining, and 123 remaining unchanged on the BSE.
Global
Markets –
World stocks were mostly lower on Monday after a US jobs
report released Friday came in hotter than expected, while the euro fell after
French President Emmanuel Macron dissolved the National Assembly following a
setback in Sunday’s parliamentary election. Far-right parties made major gains
in parliamentary elections Sunday, leading French President Emmanuel Macron to
call a snap election. This caused the euro to drop to its lowest price in
nearly a month.
The setbacks for incumbent parties cast a shadow across the
region. The CAC 40 in Paris sank 1.7% to 7,866.87 and Germany’s DAX lost 0.7%
to 18,425.26. Britain’s FTSE 100 declined 0.4% to 8,215.84 in early trading. The
future for the S&P 500 shed 0.1% and that for the Dow Jones Industrial
Average was down 0.2%.
Oil
Prices Rise –Oil prices edged up on Monday,
buoyed by hopes of rising fuel demand this summer, though gains were capped by
a strengthening of the dollar on receding expectations of imminent cuts to US
interest rates. expect Brent to rise to $86 a barrel in the third quarter,
saying in a report that solid summer transport demand will push the oil market
into a third-quarter deficit of 1.3 million barrels per day (bpd). Brent crude
futures gained 16 cents, or 0.2%, to $79.78 a barrel. U.S. West Texas
Intermediate crude futures were up 6 cents at $75.59.
Nifty futures opened at 23301.00 points against the previous
close of 23325.15 and opened at a low 23223.00 points. Nifty Future closed with
an average movement of 187.00 points and a decline of around 95.15 points and
closed 23230.00 points…!!
Rupee
Ends Lower –The Indian rupee ended weaker on
Monday, weighed down by a rise in U.S. bond yields, but likely intervention by
the Reserve Bank of India (RBI) helped limit the currency’s losses. The rupee
closed at 83.5050 against the U.S. dollar, down 0.1% from its close at 83.3725
in the previous session. The currency hovered in a tight band between 83.48 and
83.51 following a gap-down opening.
At the start of intra-day trading, June gold opened at Rs.71149,
fell from a high of Rs.71337 points to a low of Rs.70751 with a decline of 92 points,
a trend of around Rs.71261 and July Silver opened at Rs.89355, fell from a high
of Rs.90180 points to a low of Rs.88900 with a rise of 923 points, a trend of
around Rs.90020.
Meanwhile,
The Indian market currently lacks fresh catalysts
following the formation of the new government at the centre, suggesting that
some consolidation may occur in the near term. Meanwhile, optimism about a rate
cut is waning as US economic data points remain healthy. The Fed is expected to
continue its current stance.
Technically, the
important key resistances are placed in Nifty future are at 23230 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 23373 – 23404 levels. Immediate support is placed at 23170 – 23008 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
