PREMISE
Support = 11,130 and 11,060 with Resistance = 11,244 and 11,300 for Nifty50 on Thursday
Trends on SGX Nifty indicate a negative opening for the Nifty50 in India with a 100 points loss. The Nifty futures were trading at 11,022 on the Singaporean Exchange at 08:00 IST
Benchmark indices in India fell for the fifth day straight day – forming a bearish candle with long lower shadow, similar to the one made previously
Nifty50 is not able to give a closing below 11,100 level
All 3 ongoing IPOs in India received strong responses
Benchmark indices in US opened higher on account of Nike hitting a strong quarterly earnings report
Chicago Federal Reserve President Charles Evans said on Tuesday that the US economy risks a longer, slower recovery and “recessionary dynamics” if Congress fails to pass an additional fiscal stimulus package
INDIA MARKETS
Nifty50 with other domestic indices raced for the fifth close in the red on Wednesday, losing 22 points or 0.20% and settling at 11,131.85
BSE dropped 66 points or 0.17% to close at 37,668.42 level
Nifty is using 11,130 as a critical support and is now expected to witness volatile moves in a small range before a positive setup matures
On the higher side, resistance is seen at 11,244 – 11,300 area
While, on the downside, support is seen at 11,130 – 11,060 area
On the expiry day, Thursday, if the bulls can manage to defend the Wednesday’s intraday low of 11,024 a sideways move with a positive bias can be expected for the next sessions
If not, the index can test the key level of 10,880 as a short term target
India VIX tanks 1.96% from 21.41 to 20.99 level despite weakness in the market indices – points to range bound move in the coming sessions with a capped upside
Nifty Midcap 100 and Nifty Smallcap 250 loses 1.07% and 1.00% respectively
Telecom sector was down 7% on BSE, a day after Reliance Jio rolled out postpaid tariff plans, making a concerted bid for the higher paying subscribers
Bharti Airtel and Vodafone Idea logged sharp declines of 7.89% and 10.24% respectively
Sectorally, Nifty Pharma was the biggest loser, was down 1.61% followed by Nifty PSU Bank that dropped 1.50%
Bank Nifty continued its weakness for the fifth consecutive session and drifted towards the 20,800 level – forming a bearish candle on the daily scale, a hold below 21,000 can drag the index to 20,500 and 20,300 zones with upside hurdles at 21,500 and 21,750
India 10 Year bond yield rose 1.18% from 6.012 to 6.058
The overnight call money rate weighted average stood at 3.40% according to RBI data. It moved in a range of 1.80 – 4.00%
KKR is investing 5,550 Cr in RIL for a 1.28% stake in RRVL, prior to which Silver Lake Partners had invested 7,500 Cr for a 1.75% stake
US MARKETS
Investors looked to domestic business activity data to gauge the pace of an economic rebound
The Dow Jones Industrial Average rose 125.42 points at the open to 27,413.60 and then tumbled 525 points or 1.92% on Wednesday to close at 26,763.2
The S&P 500 opened higher by 4.54 points at 3,320.11 and lost 79 points or 2.37% to close at 3,236.8, forming a bearish marubozu in day’s scale
Nasdaq Composite dropped nearly 13 points to 10,950.83 at the opening bell and continued its losing streak with 330 points down to close at Monday’s open of 10633
Russel 1000 Index Growth dropped 45 points or 2.41% to close at 1,801.83
Today in derivatives market, all 3 futures trading in green with Dow futures rising 46 points, S&P 500 futures 4 points and Nasdaq 100 futures 7 points
Shares of Amazon and Netflix dropped 4.1% and 4.2%, respectively
Facebook slid 2.3% while Alphabet closed 3.5% lower and Tesla falling 10.3%
Apple ended the day down 4.2% and Microsoft dipped 3.3%
ASIAN MARKETS
Stocks in Asia-Pacific traded lower on Thursday morning
In Japan, the Nikkei 225 slipped 0.57% in early morning trade while the Topix 500 index shed 0.55%
South Korea’s Kospi is down 2.23% in morning trade
Hong Kong’s Hang Seng Index fell in morning trade, down 1.64% to trade at 23,355 continuing its 7th straight dive from 24,821 since Sep 16
In China, Shanghai Composite lost 1.18% to trade at 3,240.8 continuing its 4th losing streak
Meanwhile, Australia’s S&P/ASX 200 dropped 1.62% in morning trade at 5,866
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, traded 0.55% lower
EU MARKETS
The pan-European Stoxx 600 provisionally ended 0.31% higher by the closing bell on Wednesday
Stoxx 50 saw big bearish moves on Monday and Tuesday, suggesting continuation of downside trend or sideways movement. The index settled 0.51% up at 3180.1
Germany’s DAX saw a Big Bearish Belt Hold on Monday. The index opened gap-up at 12,735 but dropped points settling at 12,642 by the closing bell
With travel and leisure stocks bouncing 2.3% as most sectors and major bourses held in positive territory
OIL & NATURAL GAS MARKETS
Oil prices edged up on Wednesday to reports from American Petroleum Institute, saying that stocks of gasoline and distillate fuel dropped, while crude inventories rose
Rising cases of coronavirus and rising crude supply raises concerns over stalling demand capped gains and could initiate another downward leg in crude prices
Today, U.S. WTI crude is trading down 0.28% at $39.48 a barrel, fall from Friday’s high of $41.47
Today, Natural Gas gained 0.53% trading at 2.872, having formed a large Bullish candle on day’s scale for Wednesday
On MCX, India’s Crude oil future closed 0.92% up on Wednesday at 2947
India’s Natural gas futures formed a big Bullish candle on Wednesday’s trade, closing 14.73% up at 154.2 from Tuesday’s close at 134.4
GOLD & SILVER MARKETS
Gold prices hit a 6-week low on Wednesday as the dollar strengthened on concerns about rising coronavirus cases in Europe, while doubts emerged over further stimulus from the US Fed Reserve
A firmer dollar makes bullion gold more expensive for holder of other currencies
Further to a strong bearish candle on the week’s scale, there’s a negative crossover on the momentum indicator MACD with the 12-day EMA signal diverging below the 26-day EMA signal, on a week’s scale, witnessing large selloff
US gold futures settled down at $1,858.56 per ounce on Thrusday’s early morning trade after falling 1.85% to $1,862 on Wednesday’s trade
Spot gold fell 1.9% to $1,862.52 per ounce
Silver plunged 4.63% to $23.25 on Wednesday, its lowest level in over 2 months
On MCX, gold futures tumbled 1.14% or 572 to 49,809 per 10 gram
On MCX, silver futures dropped 03.70% or 316 to 58,949 per kg
INDIA – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.57% or 6.50 points at 1,145.70 ; led by gains in Chana and Soy Bean
US DOLLAR
US dollar strengthened 4th straight day, with currency index rising 0.39% on Tuesday against its G-10 peers, from 93.974 to 94.343, climbing 2-month peak
Euro/USD levels rising 0.04% in early morning trade on Thursday, trading at 1.1663, with Euro strengthening
The Japanese yen weakened by 0.05% on Thursday trade versus the greenback at 105.40 per dollar
Sterling was last trading at $1.2719, down 0.05% on the day, with sterling weakening
USD/INR opened at 73.511 and closed 06 cents higher on Wednesday, settling below the 75-per USD mark at 73.57
CNH, the offshore yuan, stands at 6.8316 to the USD, down 0.10% with dollar weakening to CNH
US TREASURY
Yields on the benchmark 10-year Treasury note is trading at 0.676%, down from Monday’s high of 0.698%
The 30-year bond yield is trading at 1.416%, down from Monday’s high at 1.460%
FUND FLOWS on 23.09.2020 (source NSE)
FII Net Sell Rs 3,912 Cr in Cash Market (+ Sell of 2,072 Cr on Tuesday)
DII Net Buy Rs 1,629 Cr in Cash Market
