Dear Trader –
Led by the downfall in banking stocks over margin
worries, Sensex on Wednesday plunged 550 points. Besides HDFC Bank, the
downfall in Bajaj twins and RIL also contributed to the fall.Nagging
concerns about elevated oil prices and US interest rates as well as the Middle
East conflict weighed on sentiments.
The 30-share BSE benchmark Sensex declined 551 or
0.83% to end at 65,877. The broader NSE Nifty dropped 145.05 or 0.73% to settle at 19,666.
High-weightage financials lost 1.3%.Bajaj Finance
shed as much as 2.85% and was the top Nifty50 loser. Bajaj Finserv also
declined over 2%.Nifty Bank also fell 1.2%. Axis Bank, HDFC Bank, ICICI
Bank, IndusInd Bank and Kotak Bank plunged 1-1.5%.
Meanwhile, Nifty Auto stocks ended higher. Tata
Motors rose 1.9%, while Maruti and M&M closed 0.3% higher. The more
domestically focussed smallcap and midcap fell 0.9% and 0.34%, respectively.
The market capitalisation of all listed companies
on BSE declined by Rs 2.42 lakh crore to Rs 321.40 lakh crore. The market
breadth was skewed in the favour of the bears. About 2,322 stocks declined, 1,386
gained, and 135 remained unchanged on the BSE.
Global Markets –
Global shares steadied on Wednesday,while unease
among investors about the risk of a widening conflict in the Middle East
translated into a rise in the price of oil and gold.
The MSCI All-World index eased 0.1%, while in
Europe, the STOXX 600 fell 0.45%. In Asian markets, Japan’s Nikkei 225 rose
0.2%, while China’s Shanghai Composite fell 0.8%.
Oil Prices Rises – Oil prices surged over 3% on Wednesday as tension escalated
in the Middle East after hundreds were killed in a blast at a Gaza hospital,
sparking concerns about potential oil supply disruptions from the region.Brent
crude futures was up $2.82, or 3.14%, to $92.72 a barrel. West Texas
Intermediate crude (WTI) futures were up $2.82, or 3.35%, at $88.16 a barrel.
Currency Watch – The Indian rupee was flat versus the US dollar, and quoted at
83.28 per dollar, as likely US dollar sales from the Indian central bank kept
the local unit off its record low despite pressure from higher crude oil prices
and equity-related outflows.
Nifty futures opened at 19825.00 points against the previous close
of 19811.10 and opened at a low of 19665.10 points. Nifty Future closed with an
average movement of 179.90 points and a decline of around 145.05 and 19666.05 points…!!
At the start of intra-day trading December gold opened at Rs.59500
fell from a high of Rs.59936 points to a low of Rs.59480 with a rise of 695 points,
a trend of around Rs.59913 and December Silver opened at Rs.72100, fell from a
high of Rs.72745 points to a low of Rs.72000 with a rise of 983 points, a trend
of around Rs.72550.
Meanwhile,Profit booking ensued in Indian markets, spurred by weak
global sentiments and escalating Middle East tensions. A sudden rise in the
tension has led to instability in energy prices. Brent prices rapidly rose
above $92.5 by the day’s closing time, while the US bond yields was cautiously
placed, awaiting the Fed chair’s speech. The initial Q2 earnings
disappointments by the IT & financials sector may have prompted attention
in the domestic markets.
All these factors are presumed to be a knee jerk
reaction as the total outlook on domestic market is stable, underpinned by
healthy Q2 result forecast and favourable fiscal position.
Technically,
the important key resistances are placed in October Nifty future are at 19666 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 19808 – 19939 levels. Immediate support is placed at 19606 –
19530 levels.
Note :- Before
Act please refer & agree Terms & conditions, Disclaimer, privacy policy
& agreement on www.nikhilbhatt.in
