Index Trend & Conditions | 08:00 IST

• Major Resistance created at 11,970—12,100 area for Nifty50

• For Thursday, Oct 29, Support at 11,660 and 11,590 with Resistance at 11,760 11,886 and 11,930 for Nifty50

• Trends on SGX Nifty indicate a negative outlook for Nifty50 in India with a 33 points loss. The Nifty futures were trading at 11,690 on the Singaporean Exchange at 07:30 IST

• Dow Jones, S&P500 and Nasdaq futures trading green on the day, US futures rebounding from the worst of the overnight declines, a negative outlook of Asia-Pacific early morning trade, and a weakening dollar on the day indicate a gap-down start with a negative bias for Indian benchmark indices

• The current mood in the market is bracing and non-committal

India Markets

NIFTY 50 OPENHIGHLOWCLOSE
Wednesday11,92211,92911,68411,729

Nifty50 dropped 160 points or -1.34% on Wednesday to close at 11,730 ; ahead of the expiry of October series futures & options contracts

The index formed a bearish engulfing candle on the daily chart after breaking the immediate support at 11,765

The index opened higher, but saw selling pressure above the 11,900 level ; falling below its 20-day moving average, which is an indication of further weakness

Nifty50 has broken the support at 11,800 level, below which we can see corrective downswing towards 11,300

Both Financial Services and Private Bank stocks were the worst performers on the day

On the up side, crucial level or resistance is seen at 11,760 11,886 and 11,930 for Thursday

While, on the downside, support is seen at 11,660 and 11,590 for Thursday

The BSE Sensex index tumbled 600 points or -1.48% at 39,922 on Wednesday

Bank Nifty fell towards 24,000 level during the day, to close at 24,232

Bank Nifty’s strong resistance level at 24,581 still remains valid

India VIX moved up 4.86 per cent from 22.19 to 23.28 levels

Broader market indices closed lower on the day. The Midcap index dropped 170 points or -0.99% while the smallcap index dropped 42 points or -0.83%

The overnight call money rate weighted average stood at 3.15% according to RBI data. It moved in a range of 1.80 – 3.55% as on Oct 27

Americas

US benchmark indices headed for the biggest drop, closing below 100-day Moving Average since early September, amid a surge in Covid-19 hospitalizations, especially in the Midwest

The Dow Jones declined 943 points or -3.43% to 26,520

The S&P 500 lost 120 points or -3.53% to 3,271

The Nasdaq dropped 426 points or -3.73% to 11,005

Canada’s S&P/TSX Composite Index lost 434 points or -2.71% to 15,586

Today in derivatives market, Dow Jones, S&P500 and Nasdaq futures are up around 1% at 7:30 IST

US VIX Index climbed to the highest level since June

Energy shares sank with oil prices, and technology stocks were also among the worst performers

Boeing Co. slumped to a one-month low as it announced plans for more job cuts

Microsoft Corp. was among the biggest drags on the S&P 500

General Electric Co. surged after the company reported a surprise profit sales of $19.4 billion. GE expects industrial free cash flow, a key gauge of earnings power, to be at least $2.5 billion in the fourth quarter and positive next year. Industrial FCF was $514 million in the third quarter

Asia-Pacific Markets

Asian stocks dropped Thursday after shares tumbled in the US and Europe, as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic

Losses were more modest across Asia than in the US session, with shares in South Korea and Australia faring worst

The Nikkei 225 dropped 172 points or -0.74% to 23,246 in early Thursday trade

Topix 500 dropped 6 points or -0.47% to 1,239 in early Thursday trade

South Korea’s Kospi dropped 37 points or -1.58% in morning trade at 2,308

In Hong Kong, the Hang Seng Index dropped 273 points or -1.10% to 24,435 in early Thursday trade

China’s CSI 300 Index dropped 17 points or -0.36% at 4,620 in early Thursday trade

Hang Seng China Enterprises Index lost 99 points or -1.00% at 9,864 in early Thursday trade

Shanghai Composite Index lost 20 points or -0.62% at 3,248 in early Thursday trade

Australia’s S&P/ASX 200 dropped 87 points or -1.44% to 5,970 in early trade

Singapore’s Straits Times Index dropped 15 points or -0.62% to 2,468

Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -0.46%

In China, nearly 1,000 firms are due to release third-quarter earnings on Thursday

Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Kuroda and President Lagarde

EU Markets

European stocks dropped to a 5-month low as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from pandemic

Stoxx Europe 600 Index sank after German Chancellor Angela Merkel proposed closing bars and restaurants for a month to curb the spread of the virus

All 19 industry sectors slid, with auto and construction shares seeing the steepest declines

The pan-European Stoxx 600 index dropped -2.76% at 342 on Wednesday

Stoxx 50 fell -3.41% to close at 3,088 on Wednesday

Germany’s DAX30 dropped 435 points or -3.61% at 11,628 on Wednesday

London’s FTSE 100 dropped 156 points or -2.75% to close at 5,571 on Wednesday

France’s CAC40 dropped 166 points, or -3.50% at 4,565

Denmark’s OMX Copenhagen 20 Index dropped 20 points or -1.52% at 1,329

Luxembourg’s LuxX Index dropped -1.24% at 1,047

Sweden’s OMX Stockholm 30 Index dropped -2.10% at 1,726

Italy’s FTSE MIB Index dropped 569 points or -3.05% at 18,086

Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November

The Markit iTraxx Europe index, a gauge of corporate credit-default swaps, reached the highest since September

Germany and France are imposing stricter lockdowns, while Italy, Spain and the U.K. all reported record case numbers on Wednesday

Stocks in Europe that are most sensitive to economic growth were hit the hardest, with construction and travel shares sliding more than 2%. Among the few exceptions were companies that benefit from people staying at home, such as online grocery retailer Ocado Group Plc

Currently, due to second round of imposed business restrictions by governments, Europe’s economic outlook is weaker than the U.S. The gap between 10-year bund (German for Bond) yields and Treasuries is now the widest since March.

“There’s quite a lot of uncertainty, which destabilizes asset prices,” Suzanne Hutchins, a portfolio manager at Newton Investment Management said. “I wouldn’t get out of equities, but I would reduce exposure.”

Oil & Natural Gas Markets

WTI crude oil futures were down over 5% to trade around $37.26 a barrel on Wednesday

Brent crude futures were down over 4% to trade around $39.06 a barrel on Wednesday

Natural gas futures were up over 8% to trade around $3.317/MMBtu on Wednesday

WTI Crude is trading lower at $37.58 per barrel in early Thursday trade

Brent Crude is trading lower at $39.28 per barrel in early Thursday trade

Natural Gas futures dropped -0.52% at $3.279 per mmbtu in early Thursday trade

On MCX-India, Crude oil futures dropped -5.5% to 2,772 on Wednesday session

On MCX-India, Natural gas futures added 7.54% to 244 on Wednesday session

Gold & Silver Markets (+copper futures)

Gold fell over 1.7% and touched $1,873 an ounce-mark on Wednesday, pressured by a stronger dollar and amid surging global virus cases and uncertainty about US elections

Silver fell over 5% to trade around $23 an ounce on Wednesday

Copper fell over 1.2% to trade around $3.05 per pound on Wednesday

US Gold futures (Comex) weakened to $1,878.50 an ounce in early Thursday trade

US Spot Gold weakened to $1,877.63 an ounce in early Thursday trade

Silver futures (Comex) weakened to $23.46 an ounce in early Thursday trade

Copper futures (Comex) weakened to $307.55 per pound in early Thursday trade

In India, Spot Gold weakened to INR 49,702 per 10 grams in early Thursday trade

India – NCDEX Agridex

Agricultural futures index tracking the performance of the 10 liquid commodities, was down -0.86% trading at 1,197 ; with major pullbacks in Ref Soy Oil and Cotton Seed Oilcake futures on Wednesday

Currency Markets

The dollar index traded lower below 92.9 on Wednesday, after touching a one-week high of 93.1369 earlier in the session

Upbeat earnings for US companies including 3M and Caterpillar improved investors’ risk appetite

Worldwide spike in coronavirus infections, with the US, Russia and France setting daily records for virus cases and fading hopes of a new stimulus bill before the presidential election next week continued to pressure the dollar

USD weakened on Wednesday, with currency index dropping -0.17% against its G-10 peers, at 92.884

INR strengthened 0.18% with USD-INR at 73.7162

JPY strengthened 0.24% with USD-JPY at 104.5900

CNY strengthened 0.09% with USD-CNY at 6.7060

EUR strengthened 0.19% with EUR-USD at 1.1832

GBP strengthened 0.16% with GBP-USD at 1.3045

SEK strengthened 0.39% with USD-SEK at 8.7111

Bond Markets

Americas : 10-Year Govt Bond Yields

United States  :  Flat at 0.77%    
Canada  :  Down 1 basis point at 0.59%

Europe, Middle East & Africa : 10-Year Govt Bond Yields

Germany  :  Down 1 basis point at -0.62%
United Kingdom  :  Down 1 basis point at 0.22%
France  :  Up 1 basis point at -0.32%
Netherlands  : Flat at -0.51%

Asia Pacific : 10-Year Govt Bond Yields

India  :  Up 1 basis point at 5.86%
Japan  :  Down 1 basis point at 0.01%
Australia : Down 2 basis points at 0.78%
Hong Kong : Down 2 basis points at 0.32%
Singapore : Down 1 basis point at 0.82%      
South Korea : Down 1 basis point at 1.49%

Fund Flows on NSE, BSE and MSEI – Oct 28 2020 (source NSE)

FII Net Sell Rs (1,130.98) Crore in Cash Market

DII Net Buy Rs 1.48 Crore in Cash Market

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