Dear
Trader…
The BSE Sensex fell 241 points, or 0.31%, to close at 77,339,
while the NSE Nifty future 87 points, or 0.37%, to finish at 23,513.
The market capitalisation of all listed companies on BSE
declined by Rs 1.42 lakh crore to Rs 429.18 lakh crore. The market breadth was
skewed in the favour of the bears. About 1,613 stocks gained, 2,484 declined,
and 127 remained unchanged on the BSE.
TCS, Infosys, NTPC, HCL Tech, Axis Bank, and Tech Mahindra
were the top Sensex laggards, falling up to 3%. On the flip side, Tata Steel,
HUL, M&M, Nestle India, SBI, and Adani Ports closed higher.
The Nifty IT index closed 2.3%lower, weighed down by TCS,
Mphasis, and LTIMindtree. This decline followed comments from Federal Reserve
Chair Jerome Powell, who indicated that there was no urgency to lower interest
rates due to strong economic growth in the United States.
Gas distributors Indraprastha Gas and Mahanagar Gas lost 20%
and 14%, respectively, after the government lowered the allocation of gas under
the regulated price. This could result in a sharp fall in the profit margins of
these companies.
A lacklustre earnings season along with foreign outflows of
about $15 billion over the last 34 consecutive sessions have dragged down
markets from all-time highs.
Meanwhile, U.S. 10-year treasury yields rose to 4.45% on
Monday following the Federal Reserve Chair’s indication of slower interest rate
cuts. Higher U.S. yields make emerging markets like India less attractive to
foreign investors, leading to continued pressure on domestic markets.
Global
Markets – The U.S. dollar and bond yields held near
multi-month peaks on Monday on expectations the Federal Reserve would slow its
pace of easing, while global shares were mostly lower, with investors waiting
for Nvidia’s earnings release later in the week.
MSCI’s broadest gauge of world stocks was down 0.1%, while
the pan-European STOXX 600 was off 0.2%. Major indexes in Frankfurt, London and
Paris were down 0.1% to up 0.2%.
Nasdaq futures were gaining 0.5%, after the index slid for
five straight days last week. S&P 500 futures edged 0.1% higher ahead of
Nvidia’s third-quarter results on Wednesday, where analysts expect the
artificial intelligence chip leader to record a jump in revenue.
Nifty futures opened at 23599 points against the previous
close of 23601 and opened at a low 23390 points. Nifty Future closed with an
average movement of 208 points and decline of around 87 points and closed 23513
points…!!
Meanwhile, Consolidation continued in the market; a slowdown in
earnings growth and a weak rupee due to inflation impacted the sentiment.
IT stocks reacted negatively today due to a reduced
expectation of a FED rate cut in December, which may pose a delay in spending
in the BFSI segment. On the other hand, metal stocks gained some ground after
China decided to reduce tax rebates on aluminium and copper.
Crude
Oil – Oil prices edged up on Monday after fighting
between Russia and Ukraine intensified over the weekend, although concerns
about fuel demand in China and forecasts of a global oil surplus weighed on
markets.
Brent crude futures were up 55 cents, or 0.8%,
to $71.59 a barrel at 0954 GMT, while U.S. West Texas Intermediate crude
futures were at $67.45 a barrel, up 43 cents, or 0.6%.
Currency Watch – The Indian rupee ended nearly unchanged on Monday, supported by the central bank’s market intervention as portfolio outflows and a decline in most Asian currencies weighed on the local unit.
At the start of intra-day trading, December gold opened at
Rs.74420 fell from a high of Rs.74740 points to a low of Rs.74349 with a rise of 756 points, a trend of around Rs.74702 and
December Silver opened at Rs.89200, fell from a high of Rs.89586 points to a
low of Rs.88924 with a Decline of 1114 points, a trend of around Rs.89526.
Technically, the
important key resistances are placed in Nifty future are at 23513 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 23676 – 23808 levels. Immediate support is placed at 23474 –
23373 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
