Dear
Trader…
Indian headline indices ended Tuesday with minor declines
amid selling pressure across sectors, including banks, auto and FMCG. The
30-stock S&P BSE Sensex ended the day at 79,441.45, dropping 35 points or
0.04% while the broader Nifty closed at 24,210.90, settling 04.65 points or 0.02%
up.
Banking gauge Nifty Bank on Tuesday settled at 52,168.10,
down by 406.65 points or 0.77%.
The Nifty breadth was tilted in favour of the bears with 21
stocks ending in the green, 28 in the red while 1 remaining unchanged. The top
gainers at the closing time were Larsen & Toubro (L&T), Wipro, Infosys,
Tata Consumer and HDFC Bank while the top losers were Shriram Finance, Kotak
Mahindra Bank, Bharti Airtel, Tata Motors and IndusInd Bank.
Of the 16 sectoral indices on the NSE, 11 ended in the red
while the remaining in the green. Nifty PSU Banks and Nifty Metal were among
the ones ending on the losing side apart from bank, auto and FMCG. The gainers
were Nifty IT, Nifty Media and Nifty Realty which jumped up to 1.1%.
Global
Markets –
Notwithstanding Nifty’s losses, other major Asian indices
closed positive. Japan’s Nikkei 225 was the top performer on the day ending
with over 1% uptick. Hong Kong’s Hang Seng index, China’s Shanghai Composite
and Singapore’s FTSE Straits Times Index gained up to 0.88%.
However, their European peers were trading in the red around
4 pm India time. UK’s FTSE was down by 0.26% while Germany’s Dax was lower by
0.91%. Spain’s IBEX, French CAC 40 and Stoxx 600 were down by 1.54% gains.
Currency
Watch – The Indian rupee closed weaker on Monday
as broad based interbank dollar demand pressured the currency even as the
greenback weakened. The rupee ended at 83.4375 against the US dollar, lower
than the close of 83.3825 in the previous session. The dollar index was down
0.1% at 105.6 and most Asian currencies ticked up, with the Indonesian rupiah
up 0.3% and leading gains.
Interbank dollar bids had pushed the rupee to an intra-day
low of 83.4650 earlier in the session but a decline in the dollar index helped
it trim losses.
Nifty futures opened at 24241.00 points against the previous
close of 24206.25 and opened at a low 24122.00 points. Nifty Future closed with
an average movement of 158.00 points and a rise of around 04.65 points and
closed 24210.90 points…!!
Crude
Impact – Crude oil prices were trading higher on
Tuesday with US WTI oil contracts trading at $84.02, up by $0.64 or 0.77% while
Brent oil futures were hovering near $87.26, higher by $0.66 or 0.76%.
On the MCX, the July Crude Oil futures were trading at Rs
7,012 per BBL, up by Rs 62 or 0.89%. Higher crude oil prices do not augur well
for the equity markets, fuelling inflation fears.
Meanwhile,
the domestic market sustained its upward
momentum, with a reduction in US PCE inflation raising hopes for a rate cut by
the Fed in September. This optimism contributed to the strong performance of IT
stocks. We anticipate this trend will persist in the near term due to
expectations of a rebound in discretionary spending. Investors are now focusing
on upcoming US job data and the Fed Chair’s speech for further indication on
interest rates.
Technically, the
important key resistances are placed in Nifty future are at 24210 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 24272 – 24373 levels. Immediate support is placed at 24008 –
23979 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
