Dear
Trader…
The BSE Sensex declined 264 points or 0.31%, settling at
85,571. The broader NSE Nifty future dropped 36 points or 0.14%, ending at 26,345.
HDFC Bank, ICICI Bank, Bharti Airtel, L&T, Power Grid,
and Kotak Mahindra Bank were the top contributors dragging down the Sensex,
while Sun Pharma, Reliance Industries, Titan, and HCL Tech closed higher.
Meanwhile, IT companies, which have the second-heaviest
weightage among the major sectors and get a major portion of their revenue from
US clients, closed up to 1.4% higher after US peer Accenture posted
better-than-expected quarterly earnings due to strong demand for its AI
services. During the day IT majors Infosys, Wipro, Tech Mahindra and Coforge
rallied up to 4%.
Metal stocks also surged up to 2% on higher global prices,
after Chinese officials pledged stimulus to boost China’s struggling economy.
Vedanta, National Aluminium, and Hindalco were the top gainers in the Nifty
Metal index.
Despite the decline in blue-chip indices, the market
capitalisation of all listed companies on the BSE surged by Rs 77,280 crore to
Rs 477.92 lakh crore. The market breadth favoured the bulls, with 1,978 stocks
gaining, 1,958 declining, and 124 remaining unchanged on the BSE.
Global
Markets – China’s big stimulus steps helped
keep global stocks near record highs on Friday. China’s blue chips jumped 4.5%,
bringing their weekly rise to 15.7%, the most since November 2008. Hong Kong’s
Hang Seng index also gained 3.6% and was up 13% for the week, its best
performance since 1998.
MSCI’s world stocks index rose 0.2%, also touching a new
peak, thanks to a big turnaround in Chinese shares as Beijing ramped up pledges
to revive sputtering economic growth.
Europe’s benchmark STOXX 600 index edged up 0.2% to touch an
all-time high, with the German DAX, France’s CAC 40 and Britain’s FTSE 100
rising in the range of 0.1% and 0.4%.
Crude
Oil – Oil prices held on Friday but
remained on track for a weekly fall as investors weighed expectations for
increased output from Libya and the broader OPEC+ group against fresh stimulus
from top importer China.
Brent crude futures were up 8 cents, 0.1%, at $71.68 per
barrel, while U.S. West Texas Intermediate crude futures were up 6 cents, also
0.1%, to $67.73. On a weekly basis, Brent crude was down almost 4%, while WTI
was on track to lose nearly 6%.
Nifty futures opened at 26308 points against the previous
close of 26308 and opened at a low 26304 points. Nifty Future closed with an
average movement of 98 points and rise of around 36 points and closed 26345 points…!!
Meanwhile,
Following the recent impressive surge, the
benchmark indices experienced a sideways movement today as investors engaged in
profit booking at elevated levels.
The Chinese market saw sharp gains amidst mixed Asian
sentiments, given economic stimulus and attractive valuation. Metals stocks saw
a resurgence, while the pharma and IT sectors saw an uptick on account of
weakness in INR. Meanwhile, investors are looking forward to the Q2 earnings
report, anticipating improvement in earnings outlook.
Rupee
Ends Weaker – The Indian rupee ended lower on
Friday pressured by month-end dollar demand from importers, with traders
expecting the future path of U.S. monetary policy and the Chinese yuan to be
key drivers of the currency’s trajectory. The rupee closed at 83.70
against the U.S. dollar, compared to its previous close of 83.6425. The
currency slipped 0.1% for the week. The dollar index was down slightly at 100.5.
At the start of intra-day trading, October gold opened at Rs.76857
fell from a high of Rs.76857 points to a low of Rs.76565 with a decline of 67 points,
a trend of around Rs.76692 and December Silver opened at Rs.92329, fell from a
high of Rs.93115 points to a low of Rs.91577 with a rise of 345 points, a trend
of around Rs.93043.
Technically, the
important key resistances are placed in Nifty future are at 26345 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 – 26606 levels. Immediate support is placed at 26288 –
26188 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
