Dear
Trader…
The Nifty crossed the 26,300 mark for the first time, while
the Sensex ended just 164 points short of the 86,000 mark.
Meanwhile, the market capitalisation of all listed companies
on BSE surged by Rs 1.72 lakh crore to Rs 476.97 lakh crore.
Mahindra & Mahindra, Maruti Suzuki, Tata Motors, ITC,
Tata Steel, and Bajaj Finance were among the top contributors to the Sensex,
while only L&T and NTPC closed in the red.
The Nifty Auto index rose 2.3%, buoyed by positive sentiment
in domestic auto firms following Karnataka’s plans to waive taxes for hybrid
cars and offer incentives for electric vehicles (EVs). Maruti Suzuki, which
sells hybrid vehicles, saw a 4.8% increase, marking its largest daily
percentage gain in nearly three months.
The market breadth was skewed in the favour of the bears.
About 2,343 stocks declined, 1,643 gained, and 96 remained unchanged on the
BSE.
1)
Monthly Derivatives Expiry – Thursday marked the end of the month for Nifty options and futures,
prompting traders to adjust their positions and creating heightened market
dynamics. The Nifty index has gained over 1,000 points during this series,
extending a trend of positive performance over four consecutive F&O series,
including a rise of more than 300 points in August.
Winding up of positions by investors on the
monthly expiry day coupled with buoyancy in Asian and European market cues
triggered a sharp upsurge as both benchmark Sensex & Nifty scaled fresh
highs.
2)
Rally in Metal Stocks – Metal
stocks played a significant role in today’s market surge, fueled by aggressive
economic stimulus measures from China.
Earlier this week, China’s top financial regulators announced
a 50 basis point cut in bank reserves and reduced mortgage rates to stimulate
sluggish economic growth. Following this news, the Nifty Metal Index rallied
over 5.5% in the last three days. Analysts noted that these measures could help
reduce steel dumping in countries like India.
3)
Expectations of Further 50 bps Rate Cut – Benchmark indices also closed higher ahead of speeches
from Federal Reserve policymakers later in the day, including remarks from
Chair Jerome Powell, which could provide further clues on the US rate outlook.
Markets are now pricing in a roughly 62% chance of a 50 bp
cut at the Fed’s November policy meeting and see a total of 77 bps worth of
cuts by the year end.The release of the core personal consumption expenditures
(PCE) price index – the Fed’s preferred measure of inflation – is also due on
Friday.
4)
Weaker Dollar – The dollar index, which tracks the
movement of the greenback against a basket of six major world currencies,
declined to the 100.87 level.
A weaker dollar is beneficial for the Indian equity market,
as it enhances foreign institutional investor (FII) flows and makes Indian
exports more competitive by reducing prices for foreign buyers. Additionally,
it lowers the burden of dollar-denominated debt, contributing to greater
financial stability and improving investment sentiment in the market.
5)
Decline in Oil Prices – Oil
prices slipped on Thursday, reversing earlier gains, on news that Saudi Arabia,
the world’s top crude exporter, will give up on its price target in preparation
for raising output.
Brent crude futures were down $1.27, or 1.7%, to $72.19 a
barrel, while U.S. West Texas Intermediate crude fell $1.18, also 1.7%, to
$68.51 per barrel. Both contracts fell more than $2 a barrel earlier on
Thursday. Lower oil prices are favorable for the Indian equity market as they
reduces inflationary pressures.
Nifty futures opened at 26126 points against the previous
close of 26105 and opened at a low 26105 points. Nifty Future closed with an
average movement of 231 points and rise of around 182 points and closed 26308 points…!!
At the start of intra-day trading, October gold opened at Rs.76458
fell from a high of Rs.77021 points to a low of Rs.76458 with a rise of 119 points,
a trend of around Rs.76577 and December Silver opened at Rs.92042, fell from a
high of Rs.94138 points to a low of Rs.92006 with a rise of 267 points, a trend
of around Rs.92055.
Technically, the
important key resistances are placed in Nifty future are at 26308 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 26474 – 26505 levels. Immediate support is placed at 26260 –
26505 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
