Dear
Trader…
S&P BSE Sensex settled at 80,004.06, down by 105.79
points or 0.13%, the broader Nifty fell below 24,150 to close at 24,217, lower
by 56.40 points or 0.23%. Banking gauge Bank Nifty at 52,218, Up by 47
points or 0.09%.
Top Gainers & Losers – The market breadth remained slightly skewed in favour of
bears as 27 stocks in the Nifty index closing in the red while the rest 23
ended in the green. The top gainers were Shriram Finance, Britannia Industries,
Asian Paints, Bharat Electronics (BEL) and Infosys while the top losers were
Adani Enterprises, Adani Ports and Special Economic Zone (APSEZ), UltraTech
Cement, Bajaj Auto and Sun Pharmaceuticals.
Out of 16 Nifty sectoral indices, 8 closed in the red with
Nifty Auto and Nifty Pharma among top laggards, each falling be nearly 1%.
Among the top performers were Nifty IT and Nifty FMCG which closed up 1% and
0.8%, respectively.
Global
Markets – Market action in rest of Asia was also subdued. Among major
Asian indices, Singapore’s FTSE Straits Times Index fell 0.51% while Japan’s
Nikkei 225 closed with declines of 0.87%. Hong Kong’s Hang Seng index ended
falt while China’s Shanghai Composite settled 0.12% lower.
Meanwhile, European markets were trading in the
red as well around 4 pm India time today. UK’s FTSE 100 fell by 0.40% while
Germany’s Dax, French CAC 40 and Stoxx 600 were higher by 0.55%, 0.64% and
0.57%. Spain’s IBEX gained by 0.87%.
Currency Watch – The Indian rupee ended slightly lower on Tuesday,
weighed down by a decline in its Asian peers after U.S. President-elect Donald
Trump pledged to levy tariffs.on the country’s biggest trading partners.
The rupee closed at 84.3275 against the U.S. dollar, compared to its previous
close of 84.2875.Trump said he would impose a 25% tariff on imports from
Canada and Mexico and outlined “an additional 10% tariff, above any
additional tariffs” on imports from China in a social media post.
The dollar climbed to its highest level against
the Chinese yuan in four months following Trump’s comments, while the Mexican
peso and Canadian dollar declined 1.2% and 0.8%, respectively.
While residual inflows related to the rejig of MSCI’s global
equity indexes helped the rupee rise a near-three-week high of 84.23, it shed
most of its gains later in the session.
Crude Impact – Crude
oil prices were trading higher on Tuesday. The US WTI oil contracts traded at
$69.67, up by $0.73 or 1.06% while Brent oil futures were hovering near $73.80,
down by $0.79 or 1.08%.Higher crude oil prices do not augur well for the
equity markets, fuelling inflation fears.
Nifty futures opened at 24349 points against the previous
close of 24273 and opened at a low 24132 points. Nifty Future closed with an
average movement of 217 points and decline of around 56 points and closed 24217
points…!!
Meanwhile, A pick-up in govt. spending / capex in 2H, improved
seasonality and somewhat better relative (to region) valuations mean that a
potential short term bounce back is possible in the market after the recent
correction.
Given our expectation of range-bound markets in the
near-term, we think investor focus is likely to lean towards quality companies
with strong earnings visibility.
Technically, the
important key resistances are placed in Nifty future are at 24217 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 24575 – 24676 levels. Immediate support is placed at 24088 –
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
