Dear
Trader…
The 30-share BSE Sensex rose 231 points, or 0.28%, to close
at 82,365. The broader NSE Nifty future increased by 112 points, or 0.44%,
ending at 25,376. This marks the third consecutive day that the Nifty has
closed at a record high.
The Nifty has risen for the 12 consecutive sessions, marking
its longest winning streak in about 17 years.Market participants now await U.S.
core personal consumption expenditures data, the Federal Reserve’s preferred
gauge of inflation, on Friday to confirm bets of the September rate cut.
From the Sensex pack, Bajaj Finance, M&M, NTPC, Bajaj
Finserv, Airtel, Sun Pharma, TCS, and Infosys were the top gainers, rising up
to 2%. On the flipside, Tata Motors, Reliance Industries, Tech Mahindra, ITC,
and HDFC Bank ended in the red.
Sector-wise, Nifty Pharma, Healthcare, and Realty closed over
1% higher. Meanwhile, Nifty IT, Healthcare, and Pharma touched their new
52-week high today.
Among individual stocks, SpiceJet closed over 5.5% lower
after the aviation watchdog placed the budget airline under enhanced
surveillance following an audit that revealed “certain deficiencies.”
Meanwhile, the market capitalisation of all listed companies
on BSE surged by Rs 1.85 lakh crore to Rs 464.4 lakh crore. The market breadth
was skewed in the favour of the bulls. About 2,157 stocks gained, 1,784
declined, and 104 remained unchanged on the BSE.
Global
Market Check –
Global stocks rose on Friday and were set for a fourth
straight month of gains despite a bout of heavy selling in early August,
boosted by U.S. growth data that helped the dollar snap a weeks-long losing
streak and kept bond markets on edge.
MSCI’s world share index ticked 0.2% higher, heading for a
1.8% monthly gain, as Europe’s Stoxx index touched a record intraday high in
early dealings and Britain’s FTSE 100 rose to a three-month peak. U.S. stock
futures also pointed to an extension of Wall Street’s positive run, with Nasdaq
contracts 0.7% higher and those tracking the S&P 500 index up 0.4%.
Crude
Oil – Oil prices edged higher on Friday on track for a
weekly gain as Libyan output disruptions and Iraqi plans to curb production
raised supply concerns, while data showing the U.S. economy grew faster than
initial estimates eased recession fears. Brent crude futures for October
delivery, which expire on Friday, were up 46 cents, or 0.58%, at $80.40 a
barrel by 0845 GMT. The more actively traded contract for November rose 42
cents, or 0.53%, to $79.24.
U.S. West Texas Intermediate crude futures gained 43 cents,
or 0.57%, to $76.34.A day earlier both benchmarks settled more than $1 higher
and were up 1.75% and 1.9% respectively for the week so far.
Nifty futures opened at 25325 points against the previous
close of 25265 and opened at a low 25281 points. Nifty Future closed with an
average movement of 118 points and a rise of around 111 points and closed 25376
points…!!
Meanwhile,
Global markets are currently resonating with the
US Fed’s pledges of a rate cut in September. The US & Indian markets have
regained the recent highs, reflecting the continuation of this optimism.
However, the dollar is strengthening given healthy US GDP growth, strong retail
sales and expectation that the upcoming US job claims will be steady leading to
shallow rate cuts in the future.
Though the domestic market is currently showing a positive
bias, the Indian Q1 GDP growth is expected to be moderate, while premium
valuation and a lack of fresh triggers could see further momentum buildup in
value stocks.
Rupee
vs Dollar – The Indian rupee ended little changed on Friday
as dollar demand from state-run banks offset the impact of likely inflows into
local equities.The rupee closed at 83.8625 against the U.S. dollar, nearly flat
compared to its close at 83.87 in the previous session. While most Asian
currencies rallied between 2% to 6% in August, the rupee weakened 0.2% to log
its second consecutive monthly decline.
Technically, the
important key resistances are placed in Nifty future are at 25376 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 25404 – 2505 levels. Immediate support is placed at 25202 –
25108 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
