Dear
Trader…
It was a broad-based rally spanning all sectors, but bank
stocks stood out. While the S&P BSE Sensex settled at 80,109, up by 993
points or 1.25%, the broader Nifty Future closed at 24273, higher by 386 points
or 1.62%. In just two sessions, the Sensex has gained nearly 3,000 points.
The market capitalisation of all BSE-listed companies surged
by over 6 lakh crore to Rs 439.86 lakh crore.
The market breadth remained highly skewed in favour of the
bulls as 43 stocks in the Nifty index closed in the green while the remaining 7
ended in the red. The top gainers were ONGC, Larsen & Toubro (L&T),
Bharat Electronics (BEL), Bharat Petroleum Corporation (BPCL) and Shriram
Finance while the top losers were JSW Steel, Tech Mahindra, Infosys, Maruti
Suzuki and Bajaj Auto.
All 16 Nifty sectoral indices ended in the green with Nifty
PSU Bank occupying the top spot. Its gains were over 4% followed by Nifty Oil
& Gas which jumped nearly 3%. Nifty Bank and Nifty Realty closed with gains
of more than 2%.
PSU stocks were in focus on Monday as both the Nifty CPSE
index and BSE PSU index finished with a nearly 3% uptick. Stocks like SJVN,
ONGC, NBCC and Cochin Shipyard settled with over 5% gains.
Global
Markets –
Market action in Asia was mixed. Among major Asian indices,
Singapore’s FTSE Straits Times Index fell 0.39% while Japan’s Nikkei 225 closed
with gains of 1.30%. Hong Kong’s Hang Seng index was among the biggest losers
falling by 0.41% while China’s Shanghai Composite settled 0.11% lower.
Meanwhile, European markets were trading with strength around
4 pm India time on Monday. UK’s FTSE 100 gained by 0.33% while Gemany’s Dax,
French CAC 40 and Stoxx 600 were higher by 0.41%, 0.28% and 0.18%,
respectively. Spain’s IBEX gained by 0.74%.
Currency
Watch – The Indian rupee logged its
strongest one-day gain since June on Monday, aided by dollar inflows related to
the rebalancing of MSCI’s global equity indexes, alongside softness in the
dollar and lower US bond yields. The rupee closed at 84.2875 against the US
dollar, up 0.2% from its previous close, its biggest single-day gain since June
3. The currency rose to 84.2550 during the session, its highest since November
7.
The dollar index and treasury yields on Monday kicked off
Asia trading on the back foot as markets reacted to US President-elect Donald
Trump’s nomination of investor Scott Bessent for the post of treasury
secretary. Bessent, who has spent his career in finance, is seen as a
comforting choice for markets and expected to keep a steady hand on government
finances.
The dollar index was last quoted at 106.8, down 0.5% from its
closing level on Friday. US Treasury yields were lower with the 10-year yield
down 7 basis points at 4.34%.
Crude
Impact – Crude oil prices were trading
lower on Thursday. The US WTI oil contracts trading at $70.82, down by $0.42 or
0.59% while Brent oil futures were hovering near $74.81, down by $0.36 or
0.48%.Higher crude oil prices do not augur well for the equity markets,
fuelling inflation fears.
Nifty futures opened at 24268 points against the previous
close of 23886 and opened at a low 24120 points. Nifty Future closed with an
average movement of 245 points and decline of around 386 points and closed 24273
points…!!
Meanwhile, The market witnessed a significant broad based rally, from
the oversold territory, predominantly led by large-cap stocks, as their
valuations appeared appealing with expectations of improvement in corporate
earnings in the second half of the fiscal year.
Technically, the
important key resistances are placed in Nifty future are at 24273 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 24373 – 24474 levels. Immediate support is placed at 24188 –
24008 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
