Index Trend & Conditions
Major Resistance at 11,960 and 12,100 for Nifty50
For Thursday, Oct 15, Support at 11,800 with Resistance at 11,960 and 12,100 for Nifty50
Trends on SGX Nifty indicate a muted outlook for Nifty50 in India with a 11 points jump. The Nifty futures were trading at 11,974 on the Singaporean Exchange at 08:45 IST
Dow Jones, S&P500 and Nasdaq futures trading in red, a negative Asia-Pacific early morning market, a Bullish Engulfing pattern on Wednesday’s Nifty50 trade and deteriorating market breadth with a weakening dollar indicate a flat start with a negative bias for Indian benchmark indices
India Markets
| Nifty50 on Wednesday | Open 11,917 | High 11,997 | Low 11,822 | Close 11,971 |
Nifty50 climbed for the 10th straight session on Wednesday, forming a small bullish candle
The index added 36 points or 0.31% at 11,934. Previously it had formed a doji and a spinning top pattern, citing indecisiveness in the market
Nifty50 is consolidating marginally above 11,777 level of 31st Aug, below which will trigger corrective downswing
It has to hold above 11,800 level to witness a further bounce towards the 12,000 level
The support of 11,800 has been respected, which is a confirmation that the underlying tone continues to remain bullish
Both Financial Services and Private Bank stocks were at the vanguard of the rally while Energy and IT stocks faltered the most
On the up side, crucial level or resistance is seen at 11,960 and 12,100 levels for Thursday
While, on the downside, support is seen at two points 11,800 for Thursday
The S&P BSE Sensex added 169 points or 0.42% to close at 40,794 on Wednesday
Overall, market breadth remained in favour of bears. As many as 234 stocks on the BSE 500 index settled the day in green, while 265 settled the day in red
Bank Nifty opened negative but added points to close 1.63% higher at 23,874, above its 200-day EMA. It formed a bullish engulfing and an outside bar pattern on the daily scale, which clearly indicates that the bulls are using every decline to take the ride in the sector
India VIX dropped 2.44% from 20.715 to 20.210 level on Wednesday’s session
Broader markets remained unchanged. The Midcap index closed with a drop of 0.16% while the smallcap index saw a modest rise of 0.08%
The overnight call money rate weighted average stood at 3.39% according to RBI data. It moved in a range of 1.80 – 3.90% as on Oct 13
Annual consumer price inflation in India increased to 7.34% in September of 2020 from 6.69% in August, well above market expectations of 6.88%
India’s wholesale prices rise the most in 7 Months – rising 1.32% YoY in September 2020, after a 0.16% gain in the previous month and beating market expectations of a 0.78% rise
Americas
Traders digest a stalemate in US stimulus negotiations after Nancy Pelosi said the White House $1.8 trillion package proposal “falls significantly short” of expectations
Wall Street’s main indexes erased early gains to trade in the red on Wednesday afternoon, after Treasury Secretary Steven Mnuchin said that it would be difficult to reach a deal on coronavirus aid before the November election as both parties remain divided on key issues
On Wednesday, the Dow Jones dropped 166 points or -0.6% to 28,514
The Nasdaq fell 95 points or -0.8% to 11,769
The S&P 500 declined 23 points or -0.7% to 3489
Russel 1000 Index dropped -0.63% on the day, touching 1,950
Canada’s S&P/TSX Composite Index dropped 55 points or -0.34% to 16,455
Today in derivatives market, Dow futures dropped 84 points or -0.29%, S&P 500 futures dropped 13 points or -0.37% and Nasdaq 100 futures dropped 92 points or -0.78%
On the macro side, the IMF warned of a “sharp adjustment” in financial markets despite revising its global growth forecast to -4.4% in 2020 from -4.9% in June, as GDP in advanced economies is now projected to drop 5.8% this year compared to -8.1% in June
Meanwhile, growth for emerging markets was revised to -3.3% from -3.1% for 2020, mainly explained by India’s sharp contraction
Asia-Pacific Markets
Stocks in Asia looked set to follow their U.S. peers lower after Treasury Secretary Steven Mnuchin played down the chances of striking a stimulus deal before next month’s election
The Nikkei 225 dropped 109 points or -0.46% to 23,517 in early Thursday trade
Topix 500 dropped nearly 5 points or -0.45% to 1,262 in early Thursday trade
South Korea’s Kospi dropped 17 points or -0.74% in morning trade at 2,362
Hong Kong’s Hang Seng Index dropped 238 points or -0.96% in morning trade to 24,429
China’s CSI 300 Index added 11 points or 0.24% to 4,818 in early trade
Hang Seng China Enterprises Index dipped 53 points or -0.54% at 9,867 on Thursday
Shanghai Composite Index added 4 points or nearly 0.13% at 3,345 in early Thursday trade
Australia’s S&P/ASX 200 added 52 points or 0.84% to 6,230 in early trade
Singapore’s Straits Times Index dropped 14 points or -0.54% to 2,541
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -0.09%
Xi Jinping calls for new measures to encourage young Hongkongers to move to mainland China
As New Zealanders prepare to go to the polls, stocks are surging to record highs and the property market is booming
EU Markets
European equities rebounded slightly after a muted start on Wednesday, as investor focus shifts to a highly anticipated EU summit starting tomorrow and earnings releases
The pan-European Stoxx 600 index added 0.19% at 370
Stoxx 50 dropped -0.01% to close at 3,278
Germany’s DAX30 added 11 points or 0.08% at 13,028
London’s FTSE 100 dropped 21 points or -0.34% to close at 5,949
France’s CAC40 added 2 points, or 0.04% to end at 4,951
Denmark’s OMX Copenhagen 20 Index dropped 4 points or -0.26% at 1,436
Luxembourg’s LuxX Index unchanged at 1,078
Sweden’s OMX Stockholm 30 Index added 5 points or 0.29% at 1,838
Italy’s FTSE MIB Index added 95 points or 0.49% at 19,653
Both the Czech Republic and the Netherlands imposed partial lockdowns, while France is expected to announce more restrictions in the coming days
On Tuesday, France reported a new daily spike in Covid-19 infections and hospitalizations rose to 5,689 from 5,350
Italy reported 5,898 new coronavirus infections on Tuesday, up from 4,619 recorded on Monday
Strong quarterly reports came from semiconductor equipment maker ASML Holding, navigation company TomTom, food-ordering firm Just Eat Takeaway.com, education group Pearson, and online fashion retailer ASOS
Oil & Natural Gas Markets
WTI crude futures pared early losses to trade above $40 a barrel on Wednesday, on the back of IEA forecasts and a weaker dollar
IEA forecasts showed that crude inventories will likely fall by 4.1 million barrels a day in the 4th-quarter of the year
Brent crude futures cut early losses to trade around $43 a barrel on Wednesday, supported by a weaker dollar
WTI Crude added 0.02% to $41.09 per barrel in early Thursday trade
Brent Crude dropped -0.09% to $43.38 per barrel in early Thursday trade
Natural Gas futures added 0.42% in early Thursday trade at $2.658 per mmbtu
Natural gas futures traded below $2.70/MMBtu, reversing the course from earlier this week amid the resumption of output following Hurricane Delta and on expectations of lower demand for the next two weeks
On MCX-India, Crude oil futures added 1.56% to 3,004 in early Thursday trade
On MCX-India, Natural gas futures dropped -6.14% to 197 in early Thursday trade
Investors remain concerned over surging coronavirus infections worldwide and its impact on fuel demand recovery
Gold & Silver Markets
Gold bounced back to trade above $1,910 an ounce on Wednesday, moving away from 3-week highs reached on Monday, as the dollar weakened and investors await more developments on a new US fiscal stimulus plan
Gold’s long-term outlook remains bullish amid expectations of a prolonged period of ultra-low interest rates coupled with the uncertainty over the economic recovery due to a recent spike in covid cases across major economies
US Gold futures (Comex) weakened to $1,899 an ounce in early Thursday trade
US Spot Gold weakened to $1,894 an ounce
Silver futures (Comex) weakened to $24.17 an ounce
In India, Spot Gold dropped by -0.32% to INR 49,651 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.34% trading at 1,157.35 ; with major gains in Soy Bean and Ref Soya Oil futures on Wednesday
Currency Markets
The dollar index reversed earlier gains to trade lower around 93.3 on Wednesday, as investors welcomed better-than-expected earnings from big US banks including Goldman Sachs and JP Morgan
Mounting coronavirus infections and further restrictions in Europe, Brexit worries, and an attempt from the PBoC to depreciate the yuan are pressuring the dollar up
USD weakened on Wednesday, with currency index adding 0.48% against its G-10 peers, at 93.43
USD LIBOR (3-Month) Rate was at 0.23% on Wednesday Oct 14
Euro LIBOR (3-Month) Rate was at -0.53% on Wednesday Oct 14
British Pound LIBOR (3-Month) Rate was at 0.05% on Wednesday Oct 14
Swiss Franc LIBOR (3-Month) Rate was at -0.76% on Wednesday Oct 14
Japanese Yen LIBOR (3-Month) Rate was at -0.10% on Wednesday Oct 14
INR strengthened 0.06% with USD-INR at 73.2988
JPY strengthened 0.33% with USD-JPY at 105.1300
CNY strengthened 0.46% with USD-CNY at 6.7151
EUR strengthened 0.08% with EUR-USD at 1.1755
GBP strengthened 0.70% with GBP-USD at 1.3027
SEK strengthened 0.10% with USD-SEK at 8.8224
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Down 1 basis points at 0.72%
Canada : Down 1 basis points at 0.57%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 3 basis point at -0.58%
United Kingdom : Down 2 basis points at 0.22%
France : Down 2 basis points at -0.31%
Netherlands : Down 2 basis points at -0.49%
Asia Pacific : 10-Year Govt Bond Yields
India : Flat at 5.90%
Japan : Flat at 0.02%
Australia : Down 1 basis point at 0.83%
Hong Kong : Flat at 0.31%
Singapore : Down 1 basis point at 0.87%
South Korea : Down 2 basis points at 1.51%
Fund Flows on NSE, BSE and MSEI – Oct 14, 2020 (source NSE)
FII Net Buy Rs 821.86 Cr in Cash Market
DII Net Sell Rs 1,276.14 Cr in Cash Market
