Dear
Trader…
The BSE Sensex surged 1,300 points to trade above 82,200.
Meanwhile, Nifty Future was above 24,900 level.
commentary will likely be crucial for markets following the
sharp growth slowdown in the September quarter.
Among individual stocks, Indraprastha Gas (IGL) rose as much
as 4% after the company announced plans to propose a bonus share issue during
its upcoming board meeting on December 10.
Meanwhile, Federal Reserve Chair Jerome Powell made balanced
comments at a New York Times event on Wednesday, describing the economy as in
good shape but not really pushing back on market pricing for rate cuts.
Earlier this week Fed Governor Christopher Waller had said he
was leaning towards a cut later in December. European retail sales figures and
German factory orders are due later in the day, though the week’s focus is on
US employment data on Friday where a strong reading could reverse bond-market
moves.
Global
Markets – The S&P 500, Nasdaq and Dow had all notched
record highs overnight. Over the past week and a half markets have all but
priced in an extra US rate cut for 2025 and the implied chance of a cut in
December has lifted from even to around 75%.
MSCI’s broadest index of Asia-Pacific shares outside Japan
was flat in morning trade as selling in Hong Kong offset gains in Australia and
Japan. Japan’s Nikkei rose about 0.6% to hit a three-week high. Hong Kong’s
Hang Seng fell around 1%.
FII/DII
Tracker – Foreign institutional investors (FIIs) extended
their buying on second day as they bought equities of Rs 1,797 crore on
December 4, on the other hand, domestic institutional investors also extended
their selling as they sold equities of Rs 900 crore on the same day.
Crude
Oil – Oil prices rose ahead of an OPEC+ meeting later
in the day, with investors waiting to see what the producer group would do next
on supply cuts while also monitoring tension in the Middle East.
Brent crude futures climbed 12 cents, or 0.2%, to $72.43 a
barrel by 0103 GMT while U.S. crude futures were at $68.70 a barrel, up 16
cents, or 0.2%. Both benchmarks fell nearly 2% on Wednesday.
Currency
Watch – The Indian rupee rose 4 paise to 84.71 against
the US dollar in early trade. The dollar index, which tracks the movement of
the greenback against a basket of six major world currencies, declined 0.08% to
106.23 level.
Nifty futures opened at 24597 points against the previous
close of 24561 and opened at a low 24396 points. Nifty Future closed with an
average movement of 534 points and rise of around 202 points and closed 24764 points…!!
Meanwhile, The Fed chief Powell’s remark yesterday that the “economy is
in remarkably good shape” is a shot in the arm for the US bulls. However, there
is a concern that the valuations in the US are getting stretched. This concern
about high valuations is true in India, too. In a bull market, valuations can
get stretched and, therefore, some caution is always good.
FIIs turning buyers is positive for markets, particularly for
largecaps. The strength in banking stocks has the potential to take the Bank
Nifty towards all-time highs. This can help Nifty future,too, to move higher.
Technically, the
important key resistances are placed in Nifty future are at 24764 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 24878 – 24979 levels. Immediate support is placed at 24676 –
24474 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
