Dear
Trader…
The 30-share BSE Sensex fell 103 points, or 0.13%, to settle
at 80,502. The broader NSE Nifty Future dropped 12 points, or 0.05%, to end at
24,517.
From the Sensex pack, Reliance Industries and Kotak Mahindra
Bank were top laggards, falling about 3.5%. ITC, SBI, HCL Tech, IndusInd Bank,
Bajaj Finance and Bajaj Finserv also closed lower, while NTPC, UltraTech
Cement, HDFC Bank, and Tata Steel closed higher.
Reliance Industries shares closed lower after the
oil-to-telecom conglomerate reported first-quarter profit below analysts’
estimates on Friday, hurt by lower margins on fuel sales.
Meanwhile, HDFC Bank closed over 2% higher after the
country’s top private lender beat quarterly profit forecasts on Saturday, as
loan-loss provisions fell.
On the sectoral front, Nifty Auto, Metal, and Pharma closed
over 1% higher. On the other hand, FMCG, IT, Media, Realty, and Oil & Gas
closed in the red. In the broader market, Nifty Midcap100 closed 1.3% higher,
and Nifty Smallcap100 surged 0.9%.
Meanwhile, the market capitalisation of all listed companies
on the BSE surged by Rs 2.07 lakh crore to Rs 448.45 lakh crore. The market
breadth was skewed in favour of the bulls. About 2,093 stocks gained, 1,923
declined, and 136 remained unchanged on the BSE.
Meanwhile, despite a robust 8.2% GDP growth in the previous
fiscal year, the Economic Survey for 2023-24 has conservatively forecast
current fiscal economic growth at 6.5-7%.
The Finance Ministry has opted for a conservative forecast in
the latest Economic Survey 2023-24 although the market was expecting a much
higher growth number.
Global
Market Check –
Global shares steadied on Monday, after President Joe Biden’s
decision to bow out of the election race at the weekend injected a degree of
optimism into the markets, while a surprise rate cut by China’s central bank
failed to give Asian markets any pep.
Biden announced on Sunday that he would drop out of the
election race and endorsed Vice President Kamala Harris for the Democratic
ticket.
Markets took the news in their stride, with S&P 500 stock
futures nudging up 0.1%, while Nasdaq futures added 0.2%. The MSCI All-World
index, which fell 2.1% last week in its worst weekly performance since April,
was narrowly in positive territory.
Crude
Oil – Oil prices were little changed on Monday
after Joe Biden announced he would not seek a second term as US President,
while investors watched for more signs that US interest rates could be cut as
early as September. Brent crude futures dipped 9 cents to $82.54 a
barrel, and US West Texas Intermediate crude futures were down 19 cents at
$79.94.
Nifty futures opened at 24468 points against the previous
close of 24529 and opened at a low 24378 points. Nifty Future closed with an
average movement of 229 points and a decline of around 12 points and closed 24517
points…!!
Currency
Watch – The Indian rupee closed nearly flat on
Monday after slipping to its weakest level on record earlier in the session
amid a decline in the Chinese yuan, although dollar sales by state-run banks
helped cap further losses in the domestic currency. The rupee ended at
83.6575 against the US dollar, nearly unchanged from its close at 83.6625 in
the previous session. The currency hit an all-time low of 83.6775 earlier on
Monday.
At the start of intra-day trading, August gold opened at Rs.73161
fell from a high of Rs.73185 points to a low of Rs.72800 with a decline of 45 points,
a trend of around Rs.72945 and July Silver opened at Rs.89641, fell from a high
of Rs.89744 points to a low of Rs.88501 with a decline of 938 points, a trend
of around Rs.89685.
Meanwhile,
The conservative economic growth forecast for
FY25, presented in the economic survey, has introduced some spikes in
volatility ahead of the budget. Further, the below-estimated Q1 results from
certain index heavyweights like RIL added to apprehensions of a slowdown in
earnings growth in FY25.
Investors traded with caution as nervousness gripped in ahead
of Tuesday’s Budget. However, markets could see volatility during the Budget
announcement on Tuesday and one may see sector-based action.
Technically, the
important key resistances are placed in Nifty future are at 24517 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 24606 – 24707 levels. Immediate support is placed at 24303 –
24240 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
