Dear
Trader…
Domestic benchmark indices, Sensex and Nifty50, reversed
early gains to close lower for the sixth straight session on Monday, as
escalating Middle East tensions and expectations of softer corporate earnings
weighed on investor sentiment.
The 30-share BSE Sensex dropped 638 points, or 0.78%, to
settle at 81,050, while the broader NSE Nifty declined 118 points, or 0.75%, to
finish at 24,985.
The Nifty 50 and S&P BSE Sensex opened around 0.3% higher
but later reversed to hit the day’s lows of 24,694 and 80,726 points,
respectively.
The market capitalisation of all listed companies on BSE
declined by Rs 8.8 lakh crore to Rs 452.08 lakh crore. The market breadth was
skewed in the favour of the bulls. About 3,422 stocks gained, 635 declined, and
121 remained unchanged on the BSE.
Among the Sensex stocks, Adani Ports, NTPC, SBI, and Power
Grid were the top laggards, falling 3-4%. On the flip side, M&M, ITC,
Bharti Airtel, Infosys, and Bajaj Finance closed higher.
The volatility index surged 6.74% to reach a near one-month
high of 15.08 on Monday.The broader, domestically-focused Nifty
Smallcap100 and Midcap100 indices dropped 2.75% and 2%, respectively,
underperforming the benchmarks.The Nifty IT index, however, rose 0.66%,
making it the only major sector to end in the green.
Gains in IT companies, which derive a significant portion of
their revenue from the U.S., were bolstered by a strong U.S. jobs report that
eased recession fears in the world’s largest economy.
Global
Markets – Shares in Europe, which had risen
in the aftermath of the jobs data, dipped 0.2% with those like banks,that benefit
from higher rates, gaining, and real estate, which does not, falling.U.S.
S&P500 futures fell 0.3%, though the index gained 0.9% Friday, and is back
around all time highs.
Asia shares rose, though Chinese onshore markets remain on
holiday until Tuesday, with investors waiting to see whether the surge in
stocks on news of incoming economic stimulus will continue.
Nifty futures opened at 25260 points against the previous
close of 25173 and opened at a low 24886 points. Nifty Future closed with an
average movement of 413 points and rise of around 188 points and closed 24985 points…!!
Meanwhile,
The Indian markets have entered a consolidation
phase with high risk of underperforming to Asian peers.This phase is marked by
significant corrections in the broader market due to premium valuations.
There is notable global arbitrage activity, with Chinese
markets attracting substantial inflows driven by its attractive valuations and
stimulus measures. Investors are reassessing their portfolio positions and FIIs
outflows are exacerbated. Amid escalating geopolitical tensions, the surging
oil prices poses a further challenge to the domestic economy, in the short-term.
Crude
oil surges above $79 – Brent crude oil
futures were up 1.3% at $79.08 a barrel, just shy of Friday’s one month high,
having posted the biggest weekly gain in more than a year last week.
Rupee
ends flat – The Indian rupee ended nearly unchanged on
Monday, sidestepping a decline in its regional peers and pressure from
equity-related outflows, as the Reserve Bank of India’s firm grip on the
currency limited losses.The rupee closed at 83.9775 against the U.S.
dollar, little changed from its previous close of 83.9725.
At the start of intra-day trading, October gold opened at Rs.76513
fell from a high of Rs.76769 points to a low of Rs.76366 with a decline of 105 points,
a trend of around Rs.76525 and December Silver opened at Rs.93161, fell from a
high of Rs.93305 points to a low of Rs.92021 with a rise of 1269 points, a
trend of around Rs.92079.
Technically, the
important key resistances are placed in Nifty future are at 24985 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 25088 – 24676 levels. Immediate support is placed at 24808 –
24676 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
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