Index Trend & Conditions
Major Resistance created at 11,960 and 12,100 for Nifty50
For Wednesday, Oct 21, Support at 11,800 with Resistance at 11,960 for Nifty50
Trends on SGX Nifty indicate a positive outlook for Nifty50 in India with a 33 points gain. The Nifty futures were trading at 11,941 on the Singaporean Exchange at 08:15 IST
Dow Jones, S&P500 and Nasdaq futures trading positive in green, a positive outlook of Asia-Pacific early morning market, a small bullish pattern on Tuesday’s Nifty50 trade with deteriorating market breadth and a weakening dollar indicate a gap-up start with a positive bias for Indian benchmark indices
India Markets
| Nifty50 on Tuesday | Open 11,861 | High 11,949 | Low 11,837 | Close 11,896 |
Nifty50 added 23 points or 0.20% on Tuesday at 11,896
The index kissed the 11,900 level again but failed to reclaim it on a closing basis, and rather remained consolidative above 11,800 level
The support of 11,800 has been respected, which is a confirmation that the underlying tone continues to remain bullish
The index formed a small bullish candle on the daily chart with a long upper wick, as it could not hold above the key resistance at 11,950
Nifty now seems to be moving in a closed range between 11,900 and 11,777
As Nifty has been shadowing Dow Jones Industrial Average index on the US market very closely, so any higher top reversals made on the benchmark US index could hurt Nifty in the shorter term
Both Realty and Telecom stocks were at the vanguard of the rally while PSU Banks and Energy stocks faltered the most
On the up side, crucial level or resistance is seen at 11,960 for Wednesday
While, on the downside, support is seen at 11,800 for Wednesday
The BSE Sensex index erased early losses to close up at 40,544 on Tuesday
Bank Nifty opened negative but managed to hold the 24,000 level and headed towards the 24,400 mark. The index formed a bullish candle on the daily scale and is making higher highs and lows since last three sessions
India VIX moved up 4.00% to 22.6900 level on Tuesday
Broader market indices closed higher on the day for 3-consecutive sessions. The Midcap index closed with a rise of 0.63% while the smallcap index saw a modest gain of 0.26%
The overnight call money rate weighted average stood at 3.36% according to RBI data. It moved in a range of 1.80 – 3.80% as on Oct 19
Health authorities reported 46,790 new infections in the last 24 hours, the lowest level in nearly three months
On the corporate front, HDFC Bank stocks rose almost 2% after ratings agency S&P said the company’s asset quality over the next two years would remain superior to the industry
Shares of Britannia Industries tumbled 5.8% to their lowest in almost a month on weaker-than-expected quarterly revenue
Americas
Wall Street closed moderately in the green and the Nasdaq rose for the first time in six sessions, as stimulus uncertainty continues
Stock futures in the US were up near 0.5% on Tuesday, rebounding from a more than 1% decline in the previous session, as investors await developments on a fresh stimulus bill
The Dow Jones gained 113 points or 0.4% to 28,309
Nasdaq added 38 points or 0.3% to 11,517
The S&P 500 climbed 16 points or 0.5% to 3443
Russel 1000 Index added 0.39%, touching 1,924
Canada’s S&P/TSX Composite Index dropped to 16,273
Today in derivatives market, Dow futures added 86 points or 0.31%, S&P 500 futures added 13 points or 0.39% and Nasdaq 100 futures added 65 points or 0.55%
On the corporate front, earnings from Travelers, Procter & Gamble, ProLogis and Philip Morris beat forecasts while IBM’s results disappointed as revenues continued to fall in Q3
On the macro front, housing starts were lower than expected while building permits came higher than anticipated
Goldman Sachs Group Inc. has reached a long-awaited deal with the U.S. Department of Justice to settle an investigation into the bank’s role in the 1MDB scandal. Goldman will pay more than $2 billion to avoid a criminal conviction
Sweden Bans Huawei, ZTE From New 5G Infrastructure following suite of US govt, as it claims Huawei is the backbone of surveillance efforts by the Chinese communist party
Goldman’s infrastructure arm makes $500 Million data-center bet in Global Compute Infrastructure LP, a platform helmed by Scott Peterson, the former CIO at Digital Realty Trust Inc
Goldman’s Scott Lebovitz thinks that the tech industry has tremendous tailwinds amid continued penetration of cloud service providers
Asia-Pacific Markets
Shares rose in Asia on Wednesday as optimism about US stimulus lifted market sentiment. House Speaker Nancy Pelosi have been expressing hope that a deal could be made between top Democrats and the White House to help sustain the economic recovery from the pandemic blow
Chief of Staff Mark Meadows said that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin made progress in negotiations Tuesday
The Nikkei 225 added 91 points or 0.39% to 23,658 in early Wednesday trade
Topix 500 dropped 11 points or 0.83% to 1,265 in early Wednesday trade
South Korea’s Kospi added 9 points or 0.31% in morning trade at 2,367
In Hong Kong, the Hang Seng Index added 267 points or 1.09% to 24,836 in early Wednesday trade
China’s CSI 300 Index dropped 3 points or -0.07% to 4,744 in early Wednesday trade
Hang Seng China Enterprises Index added 86 points or 0.86% at 10,074 in early Wednesday trade
Shanghai Composite Index dropped 8 points or nearly -0.26% at 3,319 in early Wednesday trade
Australia’s S&P/ASX 200 added 9 points or 0.15% to 6,194 in early trade
Singapore’s Straits Times Index added 12 points or 0.48% to 2,540
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -0.10%
SoftBank charged ahead with its new public stock trading arm, increasing equity positions to more than $20 billion despite an initially skeptical response from shareholders
Honk Kong-based Cathay Pacific Airways will cut 6,000 jobs and close its Cathay Dragon brand as part of a strategic review to combat the deep damage caused by the coronavirus pandemic
Offshore loan volumes in the Greater China region rebounded in the third quarter from the previous three months amid a recovery in the nation’s economy from the global pandemic
Firms in China, Hong Kong, Taiwan and Macau borrowed $25.4 billion of offshore club and syndicated loans in the 3-months ended September, a 25% increase from the second quarter
EU Markets
European stock markets cut early losses to trade slightly higher on Tuesday
The pan-European Stoxx 600 index added 0.03% at 365 on Tuesday
Stoxx 50 added 0.01% to close at 3,243 on Tuesday
Germany’s DAX30 dropped 52 points or -0.40% at 12,803 on Tuesday
London’s FTSE 100 added 22 points or 0.38% to close at 5,906 on Tuesday
France’s CAC40 added 19 points, or 0.39% at 4,949
Denmark’s OMX Copenhagen 20 Index added 1 point or 0.09% at 1,411
Luxembourg’s LuxX Index added 0.55% at 1,071
Sweden’s OMX Stockholm 30 Index added 5 points or 0.28% at 1,846
Italy’s FTSE MIB Index added 117 points or 0.60% at 19,491
Latest figures showed construction output in Italy jumped 12.8% year-on-year in August
On the corporate front, Europe’s benchmark indices were support by a string of better-than-expected results from companies including UBS, Swedbank, Logitech, Reckitt Benckiser, Orion and Sartorius Stedim
Concerns about growing coronavirus infections across Europe continued after Ireland became the first EU country to re-enter lockdown, which will come into effect for six weeks on Wednesday, while many others also imposed stricter restrictions
At the same time, the French government announced on Monday that it is set to expand its aid measures to help small businesses hit by the coronavirus pandemic with a EUR 20 billion scheme of quasi-equity loans partially backed by the state
Elsewhere, US Democrats and White House officials “continued to narrow their differences” about a fresh aid package, but investors fear that the two sides won’t reach an agreement
Oil & Natural Gas Markets
Crude oil futures fell more than 0.8% to trade around $40.5 a barrel on Tuesday after briefly turning positive early in the session as investors remain concerned over fuel demand recovery amid a spike in coronavirus infections worldwide
The liquified natural gas market is trading higher on the back of growing demand ahead of the upcoming winter season
WTI Crude is trading at $41.43 per barrel in early Wednesday trade
Brent Crude is trading at $42.86 per barrel in early Wednesday trade
Natural Gas futures dropped -1.09% in early Tuesday trade at $2.907 per mmbtu
On MCX-India, Crude oil futures added 1.57% to 3,045 in early Wednesday trade
On MCX-India, Natural gas futures added 6.51% to 214 in early Wednesday trade
Crude oil prices are under pressure amid US crude inventories unexpectedly rising 0.6 million barrels in the latest week
Gold & Silver Markets
Gold hovered around $1,900 an ounce on Tuesday, as investors cautiously await developments on the new stimulus bill. The bullion’s outlook remains bullish, supported by lower interest rates and unprecedented stimulus from central banks and governments
Gold prices were firm and rising on Wednesday as dollar is under pressure to fall
US Gold futures (Comex) strengthened to $1,923 an ounce in early Wednesday trade
Silver futures (Comex) strengthened to $25.15 an ounce
In India, Spot Gold strengthened to INR 50,335 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 1.28% trading at 1,183.00 ; with major gains in Mustard Seed and Cotton Seed futures on Tuesday
Currency Markets
The dollar index fell for a 3rd straight session on Tuesday, the lowest on a closing basis in a week as investors await developments on the new stimulus bill as the 48-hour deadline set by Democrats expires (today) on Tuesday
House Speaker Nancy Pelosi said on Monday that the differences continued to narrow and more talks are scheduled for Tuesday
USD weakened on Tuesday, with currency index dropping -0.20% against its G-10 peers, at 93.242
INR weakened -0.14% with USD-INR at 73.4650
JPY weakened -0.24% with USD-JPY at 105.6800
CNY strengthened 0.02% with USD-CNY at 6.6815
EUR strengthened 0.36% with EUR-USD at 1.1811
GBP weakened -0.14% with GBP-USD at 1.2930
SEK strengthened 0.49% with USD-SEK at 8.7863
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Up 2 basis points at 0.79%
Canada : Up 1 basis point at 0.59%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Up 2 basis points at -0.61%
United Kingdom : Up 2 basis points at 0.18%
France : Up 1 basis point at -0.33%
Netherlands : Up 2 basis points at -0.51%
Asia Pacific : 10-Year Govt Bond Yields
India : Flat at 5.93%
Japan : Flat at 0.01%
Australia : Up 1 basis point at 0.75%
Hong Kong : Flat at 0.32%
Singapore : Down 3 basis points at 0.84%
South Korea : Flat at 1.45%
Fund Flows on NSE, BSE and MSEI – Oct 20 2020 (source NSE)
FII Net Buy Rs 1,585.07 Cr in Cash Market
DII Net Sell Rs -1,633.23 Cr in Cash Mark
