Dear Trader –
The BSE benchmark
Sensex advanced 635 points or 1% to settle at 63,783. The broader NSE Nifty
jumped 173 points or 1% to end above the 19,145 level.
All major sectoral
indices logged gains. Nifty PSU Bank surged 4.1%. Bank of India, Canara Bank.
Nifty Auto, Nifty Financial, and Nifty IT also rose over 1% each.
the market
capitalisation of all listed companies on BSE surged by Rs 4.54 lakh crore to
Rs 310.58 lakh crore.The more domestically focussed small and midcaps rose 2%
and 1.5%, respectively.
Here are the top
factors which triggered the uptick:
US Treasury yields soften – Markets rejoiced on softening of the US bond yields on
Thursday following the release of weaker-than-expected US inflation and
disposable income data, supporting market sentiment that interest rates are
closer to their peak. The 10-year treasury bond yields last traded at 4.875
down from 5% on Monday after hitting this level for the first time in 16 years.
Firm Asian markets – Asian markets rose on Friday after blockbuster
earnings from tech giants Amazon and Intel provided Asian traders with hope for
a bounce in New York at the end of the week. Stock markets in Hong Kong, Tokyo,
Shanghai, Singapore, Sydney, Seoul, Jakarta and Taipei were all trading higher.
Strength in currencies – Asian currencies were mostly higher aided by an
improvement in risk appetite as U.S. treasury yields retreated despite robust
U.S. GDP data. The Korean won led gains among the rupee’s Asian peers, up by
nearly 0.7%. The Indian rupee was little changed on Friday.
Technicals – The consecutive six-day correction has brought the
markets in oversold territory and valuations which were at premiums are now at
a fair price according to experts and offering buying opportunities to
investors and traders.
Nifty futures opened at 18999.60 points against the previous close
of 18972.60 and opened at a low of 18990.75 points. Nifty Future closed with an
average movement of 169.25 points and a decline of around 172.40 and 19145.00 points…!!
At the start of intra-day trading December gold opened at Rs.60915
fell from a high of Rs.61034 points to a low of Rs.60756 with a rise of 132 points,
a trend of around Rs.60820 and December Silver opened at Rs.71745, fell from a
high of Rs.71900 points to a low of Rs.71300 with a rise of 142 points, a trend
of around Rs.71438.
Meanwhile,
The domestic market
recovered well compared to yesterday’s sharp corrections, due to restrained FII
selling along with moderation in currency and global bond yield volatility. To
date, the Q2 results outcome is decent, which is in-line with the buoyant estimate.
Yet, the market is not enthusiastic as we are at the cusp of earnings downgrade
in anticipation of further slowdown in the world economy due to elevated
interest rate and geopolitical risk.
Technically,
the important key resistances are placed in October Nifty future are at 19145 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 19202 – 19303 levels. Immediate support is placed at 19009 –
18808 levels.
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