Dear
Trader…
The BSE Sensex fell 153 points, or 0.19%, to close at 81,820,
while the NSE Nifty Future dropped 103 points, or 0.41%, to end at 25,118.
Data released late on Monday showed that rising food prices
in September pushed India’s retail inflation to a nine-month high, which
analysts noted could delay domestic rate cuts to early next year, rather than
December.
Bajaj Finance, Reliance Industries, Tata Steel, JSW Steel,
Tech Mahindra, and Tata Motors were the top Sensex laggards, falling between 1%
and 2.5%. In contrast, ICICI Bank, Bharti Airtel, Asian Paints, Adani Ports,
and UltraTech Cement ended the session higher.
On the sectoral front, the Nifty Auto index dropped 0.8%, as
concerns over delayed rate cuts dampened sentiment in a sector reliant on
customers securing bank loans.
The Nifty IT index reversed its early gains to close 0.3%
lower, weighed down by Wipro, Tech Mahindra, and Mphasis. Meanwhile, the metal
index fell nearly 1.5%.
Reliance Industries shares dropped over 2% following a
decline in its second-quarter profit.Inflation concerns overshadowed
gains in oil marketing companies and paint manufacturers, despite a slide in
global oil prices. A media report suggesting Israel may refrain from striking
Iranian oil targets eased fears of supply disruption.
Despite the market decline, the overall market breadth
favoured the bulls, with 2,068 stocks advancing, 1,894 declining, and 102
remaining unchanged on the BSE.
Global
Markets – European shares and US futures
were little changed on Tuesday after Wall Street scaled record highs overnight.
Chinese stocks, meanwhile, tumbled as a media report that detailed extra
government borrowing to boost the economy appeared to underwhelm investors.
Europe’s STOXX 600 index fell less than 0.1% in early trading
after rising on Monday, leaving it within 1% of a record high reached in
September. Oil and gas stocks fell, but airlines rallied on lower energy prices
Futures for the U.S. S&P 500 index were very
slightly lower after the benchmark Wall Street gauge hit a record high
overnight, led by chip stocks after a 2.4% jump in AI darling Nvidia and a
brisk start to the third-quarter earnings season with JP Morgan and Wells Fargo
beating expectations.
Rupee
vs Dollar – The Indian rupee ended little
changed on Tuesday as the slump in crude oil prices offset the impact of
weakness in Asian peers and dollar demand from foreign banks.The rupee
closed at 84.0375 to the U.S. dollar against its close at 84.06 in the previous
session. The currency had slipped to an all-time low of 84.0750 on Monday.
Nifty futures opened at 25259 points against the previous
close of 25221 and opened at a low 25064 points. Nifty Future closed with an
average movement of 223 points and decline of around 103 points and closed 25118
points…!!
Meanwhile, The domestic market experienced a downturn, influenced by a
mixed global trend and partial profit-booking. Although declining crude prices
are beneficial for the domestic economy, they signal weakening global demand.
Additionally, India’s CPI surged driven by food prices, which will delay
expected rate cuts. Furthermore, subdued corporate Q2 results are leading to a
cautious stance.
Crude
Oil – Oil prices tumbled over 4% to a
near two-week low on Tuesday due to a weaker demand outlook and after a media
report said Israel is willing to not strike Iranian oil targets, easing fears
of a supply disruption.
Brent crude futures fell $3.51, or 4.5%, to
$73.95 a barrel, their lowest since October 2. West Texas Intermediate futures
lost $3.48, or 4.7%, hitting $70.35 a barrel.
At the start of intra-day trading, October gold opened at Rs.76504
fell from a high of Rs.76663 points to a low of Rs.76335 with a rise of 65
points, a trend of around Rs.76663 and December Silver opened at Rs.90765, fell
from a high of Rs.90987 points to a low of Rs.89705 with a decline of 251
points, a trend of around Rs.90987.
Technically, the
important key resistances are placed in Nifty future are at 25118 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 25373 – 25404 levels. Immediate support is placed at 25008 –
25404 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
