Dear
Trader…
The 30-share BSE benchmark Sensex declined
111 points or 0.14% to settle at 77,580. The broader NSE Nifty Future dropped
37 points or 0.16% to end at 23,621.
From the Sensex stocks, HUL, NTPC, Nestle India,IndusInd Bank, and Power Grid were the top laggards, falling
1.9% to 3%. On the flip side, Reliance Industries, Kotak Bank, Tech Mahindra, M&M, and HDFC
Bank ended with gains.
Among individual stocks, Jio Financial
Services and Zomato rose 6.4% and 4.3%, respectively, after getting the market
regulator’s approval for derivatives trading.
The market weakness, which pulled the Nifty
down 10% from its record high on September 27 and confirmed the correction, has
been due to a disappointing corporate earnings season and the massive foreign
outflows worth $15 billion in the last 33 sessions.
Additionally, data earlier this week
revealed a spike in inflation, fueling concerns about a consumption slowdown
and dampening hopes for a domestic rate cut in the near term.
Sector-wise, Nifty FMCG fell 1.5%, and PSU
Bank dropped 0.7%. Nifty Pharma, Metal, Healthcare, and Oil & Gas also
ended lower. However, in the broader market, Nifty Smallcap100 rose 0.8%, while
Nifty Midcap100 gained 0.45%.
Global
Markets – European shares were
mostly higher in early trade, contrasting with the declines in Asia. The Euro
STOXX 50 rose 0.6%, while the broader STOXX 600 was up 0.2% after a number of
earnings reports, including from Europe’s largest telecoms group Deutsche
Telekom and tech giant ASML. In contrast, MSCI’s broadest index of Asia-Pacific
shares outside Japan fell 0.7%. The mainland CSI300 blue-chip index fell 1.7%,
while the Shanghai Composite Index fell by a similar amount. Hong Kong’s Hang
Seng Index slid 2%.
Crude Oil – Oil prices were largely steady on
Thursday, with traders holding fire after declines earlier this week on a
stronger US dollar and worries about rising supply amid slow demand growth. Brent
crude futures were down 3 cents to $72.25 a barrel at 0937 GMT. U.S. West Texas
Intermediate crude futures were down 7 cents to $68.36.
Rupee at Record Closing Low – The Indian rupee slipped
to its weakest closing level on record on Thursday but fared better than its
regional peers as state-run banks’ dollar sales countered a surging greenback
and weakness in local stocks. The rupee closed at 84.3950 against the US
dollar, down marginally from its close at 84.3775 in the previous session. The
currency was nearly unchanged week-on-week.
Nifty futures opened at 23649 points against the previous
close of 23658 and opened at a low 23561 points. Nifty Future closed with an
average movement of 195 points and decline of around 37 points and closed 23621
points…!!
Meanwhile, Today the domestic market experienced a
lacklustre trading, but some stability was observed throughout from the low of
the day. The sustainability of this trend remains uncertain as FIIs continue to
be on the selling side. But on a positive note the degree of selling is
reducing.
Asian markets too displayed mixed
sentiments as investors evaluate potential risk due to a likely change in the
US policy with trade barriers. However, it looks like the muted performance of
domestic Q2 earnings has been mostly factored in with the consolidation of the
last 1-2 months. The market will look forward to improvement in domestic
business and economy data, in anticipation of a rebound in government spending,
which was reduced during the year due to national & state elections.
At the start of intra-day trading, December gold opened at
Rs.73995 fell from a high of Rs.73996 points to a low of Rs.73300 with a
decline of 718 points, a trend of around Rs.73764 and
December Silver opened at Rs.89000, fell from a high of Rs.89000 points to a
low of Rs.86844 with a Decline of 1561 points, a trend of around Rs.87636.
Technically, the
important key resistances are placed in Nifty future are at 23621 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 23676 – 23770 levels. Immediate support is placed at 23373 –
23303 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
