Dear Trader…
Indian headline indices ended in the red on Wednesday dragged
by IT sector heavyweights Infosys and Tata Consultancy Services (TCS). They
also broke their two-session gaining streak after hitting fresh record highs.
Nifty scaled an all-time high of 25,519 before finishing the
session at 25,396, down by 53 points or 0.21% while S&P BSE Sensex
conquered a peak of 83,326.38 before settling at 82,948.23, lower by 131.43
points or 0.16%.Bank Nifty all-time high of 52,999 before finishing the
session at 52737,up by 461 points or 0.88%
Nifty traded in a range of 200 points amid volatility. The
fear gauge India VIX rose 6.2% to 13.37.
Banks and financial services sectors were the only gainers
among the Nifty sectoral indices. Among 16 Nifty sectoral indices, 11 closed in
the red. Apart from Nifty IT which plunged over 3%, the other big losers were
Nifty Pharma, Nifty Healthcare and Nifty Oil & Gas which by up to 1.53%.
Top
gainers & losers – The day
belonged to bears as the Nifty breadth showed 33 stocks ending in the red while
the remaining 17 in the green. The top gainers were Shriram Finance, Bajaj
Finance, Bajaj Finserv, Nestle India and HDFC Bank while the top losers were
TCS, Infosys, HCL Technologies, Tech Mahindra and Wipro.
Global
Markets – Among major Asian indices, Japan’s
Nikkei 225 and China’s Shanghai Composite closed with gains of 0.5%,each, while
Singapore’s FTSE Straits Times Index ended flat, though the bias was negative.
Currency
Watch – The Indian rupee rose 0.16% versus
the U.S. dollar to 83.75, lifted by rising expectations that the U.S. Federal
Reserve will kickoff policy easing with a 50 basis points rate cut this week.
The benchmark 10-year bond was quoted at 102.2650 rupees, with the yield up 2
bps at 6.7808%, as traders book profits on Wednesday.
Crude
Impact – Crude oil prices were trading higher on Tuesday
with US WTI oil contracts trading at $70.41, down by $0.78 or 1.10% while Brent
oil futures were hovering near $72.98, lower by $0.72 or 0.98%.Higher
crude oil prices do not augur well for the equity markets, fuelling inflation
fears.
Nifty futures opened at 25444 points against the previous
close of 25449 and opened at a low 25301 points. Nifty Future closed with an
average movement of 218 points and rise of around 53 points and closed 25396
points…!!
Meanwhile, European markets was a sea of red as most major
indices were down ahead of the US Federal Reserve’s policy outcome later today.
UK’s FTSE was down by 0.63% around 4 pm India time while Germany’s Dax was
lower by 0.14%. French CAC 40, Spain’s IBEX and Stoxx 600 fell by up to 0.45%.
At the start of intra-day trading, October gold opened at Rs.73199
fell from a high of Rs.73329 points to a low of Rs.72989 with a rise of 146 points,
a trend of around Rs.73240 and December Silver opened at Rs.88934, fell from a
high of Rs.89220 points to a low of Rs.88372 with a decline of 103 points, a
trend of around Rs.89037.
Technically, the
important key resistances are placed in Nifty future are at 25396 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 25474 – 25505 levels. Immediate support is placed at 25088 –
25008 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
