Dear
Trader…
After fluctuating between gains and losses,
the Sensex and Nifty closed in the red for the fifth straight session on
Friday and posted their worst week in over two years, dragged by auto, banking,
and financial stocks. Investor sentiment remained cautious due to the deepening
conflict in the Middle East and increasing foreign outflows.
The 30-share BSE Sensex fell by 809 points, or 0.98%, to
settle at 81,688.4, while the broader NSE Nifty Future declined by 302 points,
or 1.18 %, to end at 25,173.
For the week, the Sensex dropped 3,883 points, or 4.5%, while
the Nifty declined 1,128 points, or 4.3%.The market capitalisation of all
listed companies on BSE declined by Rs 16.67 lakh crore to Rs 461.26 lakh
crore.
Meanwhile, foreign outflows from Indian markets reached a
record high on Thursday, with foreign institutional investors offloading shares
worth $3.65 billion over the last three sessions.
From the Sensex pack, HDFC Bank, Reliance, ICICI Bank,
M&M, Bharti Airtel, and Bajaj Finance were the top contributors to the
index’s decline. On the other hand, Infosys, Tech Mahindra, Tata Motors, Axis
Bank, and TCS ended the session in positive territory.
On the sectoral front, Nifty Media dropped 2.5%, while Nifty
Auto, FMCG, Realty, and Oil & Gas ended 1-2% lower. Only Nifty IT and the
PSU Bank index closed in the green.
Global
Markets – Global stocks rose on Friday while
oil prices were headed for their biggest weekly gain in two years, as
escalating tensions in the Middle East kept markets on edge.
The MSCI All-World index was up 0.1%, while Europe’s STOXX
600 rose 0.2%. S&P 500 and Nasdaq futures tacked on 0.1%, suggesting shares
on Wall Street may edge higher later. Japan’s Nikkei, which rose 0.2% on
Friday, was set for a weekly loss of about 3%.
Crude
Oil – Oil prices rose further on Friday
and were on track for strong weekly gains as investors weighed the prospect of
a wider Middle East conflict disrupting crude flows against a well-supplied
global market.
Brent crude futures were up 55 cents, or 0.7%, at $78.17 a
barrel. U.S. West Texas Intermediate crude futures were up 50 cents, also 0.7%,
at $74.21 a barrel. Both benchmarks were headed for weekly gains of about 9%.
Rupee
vs Dollar – The Indian rupee ended nearly
unchanged on Friday to cap its worst weekly performance in a little over four
months, as equity outflows surged and crude oil prices rose due to a worsening
of the Middle East conflict.
The rupee closed at 83.9725 against the US dollar, almost
flat compared to its close at 83.9675 in the previous session. The currency
fell 0.3% week-on-week.
Nifty futures opened at 25475 points against the previous
close of 25400 and opened at a low 25129 points. Nifty Future closed with an
average movement of 502 points and rise of around 301 points and closed 25990 points…!!
Meanwhile,
The bearish sentiment continued as investors are
monitoring the escalating conflict in the Middle East and have adopted a sell-on
recovery strategy.
The drag was across sectors led by realty, auto, and FMCG
except IT stocks, which gained due to expected benefits from US rate cuts and
defensive nature. The pessimism on the market is expected to continue in the
near term amidst rising crude prices and fund flows to cheaper markets like
China.
At the start of intra-day trading, October gold opened at Rs.76865
fell from a high of Rs.77040 points to a low of Rs.76292 with a decline of 195 points,
a trend of around Rs.76590 and December Silver opened at Rs.75649, fell from a
high of Rs.75833 points to a low of Rs.75275 with a decline of 244 points, a
trend of around Rs.75275.
Technically, the
important key resistances are placed in Nifty future are at 25173 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 25202 – 25303 levels. Immediate support is placed at 25008 –
24808 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
