Index Trend & Conditions | 08:30 IST
• Major Resistance created at 11,970—12,100 area for Nifty50
• For Wednesday, Nov 04, Support at 11,650 and 11,600 with Resistance at 11,870 and 11,900 for Nifty50
• Trends on SGX Nifty pointed to a mixed start for Nifty50 in India with a 16 points loss. The Nifty futures were trading at 11,810 on the Singaporean Exchange at 08:00 IST
• Dow Jones, S&P500 and Nasdaq futures swung on early Wednesday morning, a positive outlook of Asia-Pacific early morning trade, MSCI APAC ex-Japan up 0.66% on the day and a strengthening US dollar with surging Treasuries indicate negative start with a range-bound (between 11,870 and 11,650) bias for Nifty 50 India
• The current mood in the market is bracing and non-committal
India Markets
| NIFTY 50 | OPEN | HIGH | LOW | CLOSE |
|---|---|---|---|---|
| Tuesday | 11,734 | 11,836 | 11,723 | 11,813 |
Nifty opened positive on Tuesday in line with strong global cues and witnessed buying momentum throughout the session to extend its gains towards 11,840 level
Nifty50 added 140 points or 1.20% on Tuesday to close at 11,813
Nifty50 formed a bullish candle on the daily scale and negated the formation of lower highs and lows in the smaller time frame chart
Nifty50 managed to hold above its crucial zone at 11,777 and closed above its 20-DEMA
Any close below 11,535 on this week will put a significant selling pressure on Nifty 50 down to 11,300—11,244 levels, with positional shorting below 11,535 level for bigger targets
Both Realty and Energy stocks were the worst performers on Tuesday’s session, while Private Bank and Financial Services stocks were at the vanguard of the rally
On the up side, crucial level or resistance is seen at 11,870 and 11,900 for Wednesday
While, on the downside, support is seen at 11,650 and 11,600 for Wednesday
The BSE Sensex index gained 503 points or 1.27% to 40,261 on Wednesday
Bank Nifty opened gap-up and added 790 points or 3.17% during the day, forming a big Bullish Candle on the daily scale, to close at 25,682 witnessing strong buying interest
Bank Nifty’s resistance level at 25,180 has acted as support for Tuesday’s session with crucial resistance now placed at 25,180
India VIX fell 3.85 per cent from 25.21 to 24.24 levels
Broader market indices closed higher on the Tuesday. The Midcap index advanced 120 points or 0.70% while the smallcap index added 0.25%
The overnight call money rate weighted average stood at 3.18% according to RBI data. It moved in a range of 1.80—3.45% as on Nov 02
Israel Ambassador to India Dr Ron Malka has said the countries’ strategic partner in agriculture will play a key role in helping realise PM Modi’s vision to double farmers’ income by 2022
The yield on the benchmark 10-year government bond was little changed at 5.89% while the rupee strengthened 0.2% to 74.3150 against the U.S. dollar
On stocks front, Reliance Industries continued its southward journey after the meltdown in the previous session, down -10% in 2-sessions
Sun Pharma erased early losses and cheered better-than-expected September quarter results and closed 3.39% higher at 485
Agri-solutions company UPL slid -7.27% to 417 after auditors of its Mauritius subsidiary refused to share further details about their resignation
America Markets
Wall Street surged on Tuesday amid a week of big market volatility
Investors fretted over the potential for a contested outcome, a surge in coronavirus cases and stretched valuations that make megacap tech shares look expensive as the economic rebound starts to slow
The Dow Jones added 555 points or 2.06% to 27,480
The S&P 500 gained 59 points or 1.78% to 3,369
The Nasdaq climbed 203 points or 1.85% to 11,160
Today in derivatives market, S&P 500 futures retreated after earlier rising over 1%, though Nasdaq 100 contracts pointed higher
Benchmark Treasury yields reversed sharply, falling toward 0.8% after earlier surpassing 0.9%
A portion of the yield curve had steepened the most since 2016 on bets for further stimulus
The dollar erased losses and pushed higher
“Early prospects for a quick resolution to the U.S. election have given way to the reality of an extended process, not only with regards to the White House but also the Senate,” said Ian Lyngen, a strategist at BMO Capital Markets. “Volatile price action can only be expected to persist for the time being, at least until the path forward becomes clearer.”
A Democratic sweep would lead to a “more strenuous anti-trust review,” which would weigh on large-cap technology stocks and pharmaceutical firms
Asia-Pacific Markets
Asia Pacific markets traded mostly higher on Wednesday, ahead of a crucial week spanning the US election and a Federal Reserve policy meeting, events that could set the tone for the rest of the year
Hong Kong stocks swung between gains and losses after Chinese regulators scrapped Ant Group Co.’s $35 billion initial public offering, and as investors digested early results in the US election
The Nikkei 225 added 330 points or 1.42% to 23,626
Topix 500 added 10 points or 10.85% to 1,253
South Korea’s Kospi added 7 points or 0.36% to 2,350
In Hong Kong, the Hang Seng Index dropped 70 points or -0.28% to 24,892
China’s CSI 300 Index added 20 points or 0.44% at 4,798
Hang Seng China Enterprises Index dropped 28 points or -0.28% to 10,044
Shanghai Composite Index dropped 7 points or -0.23% at 3,263
Australia’s S&P/ASX 200 dropped 44 points or -0.73% to 6,022
Singapore’s Straits Times Index added 4 points or 0.17% to 2,501
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is up 0.66%
Alibaba Group Holding Ltd. tumbled as much as 9.3% in Hong Kong after China halted the initial public offering of Ant Group Co., in which Alibaba owns about a one-third stake
Winemakers, who’ve enjoyed a booming demand from China’s growing middle-class, may suffer due to China’s verbal blacklist on import of Australian commodities such as coal, barley, copper, sugar, timber, wine and lobster
Chinese President Xi Jinping said the economy can double in size by 2035 and the country can reach high-income status in the next five years as the Communist Party outlined ambitious plans for the nation’s future
Malaysia’s central bank held its benchmark interest rate at a record low on Tuesday, at 1.75% while maintaining an accommodative stance on their monetary policy through to 2021
Pandemic is costing Vietnam nearly $8.6 Billion in Budget Revenue with tourism being the hardest-hit sector. Under normal conditions, the country may welcome 21 million foreign arrivals, generating revenue of more than $60 billion, in a year
US-based BlackRock’s research arm upgraded Asia ex-Japan and emerging market equities to overweight 1-day ahead of the US election on expectations of a Blue Wave Democratic sweep. On other views, the research arm downgraded European equities to neutral as the region’s major economies reintroduce restrictions following a resurgence in cases.
BlackRock downgraded Japanese shares to underweight. A weaker dollar could send the Japanese yen up, putting pressure on the country’s export sector
Ray Dalio sees the need to have “a significant portion” of its portfolio in Chinese assets for long-term diversification and shorter-term tactical trading. Supporting his view, copper advanced as China’s manufacturing data promised continued demand
EU Markets
Stocks in Europe traded in the green on Tuesday, with major bourses adding near 2%, ahead of the US presidential election later in the day
The pan-European Stoxx 600 index added 1.90% at 352 on Tuesday
Stoxx 50 added 58 points or 1.89% to close at 3,077 on Tuesday
Germany’s DAX30 added 188 points or 1.60% to 11,975 on Tuesday
London’s FTSE 100 added 114 points or 2.02% to close to 5,769 on Tuesday
France’s CAC40 added 96 point, or 2.05% at 4,787
Denmark’s OMX Copenhagen 20 Index added 10 points or 0.76% at 1,346
Luxembourg’s LuxX Index added 2.08% at 1,075
Sweden’s OMX Stockholm 30 Index added 1.04% at 1,766
Italy’s FTSE MIB Index added 362 points or 1.97% at 18,762
Italy announced new measures including limiting travel between regions and a night curfew, while avoiding to reintroduce a second lockdown
On the corporate front, France’s biggest bank BNP Paribas was among the best performers, rising almost 6%, after reporting that net income fell less than expected in Q3
Bank of England is likely to announce a £100 billion expansion of its bond buying programme at its policy meeting on Thursday
Oil & Natural Gas Markets
WTI crude futures were up more than 3% to trade around $38.1 a barrel on Tuesday, extending previous session’s gains supported by a weaker dollar
Sentiments were also supported by signs that Russia, a key OPEC ally, is considering an extension of oil production restrictions into the first quarter of 2021
Brent crude futures were up over 3% to trade above $40 a barrel on Tuesday
Natural gas fell -4.6% to $3.087/MMBtu on Tuesday, as weather forecasts point to mild weather in the coming days
WTI Crude is trading higher at $38.28 per barrel in early Wednesday trade
Brent Crude is trading higher at $40.28 per barrel in early Wednesday trade
Natural Gas futures lower at $3.062 per mmbtu in early Wednesday trade
On MCX-India, Crude oil futures added 3.26% to 2,820 on Tuesday’s session
On MCX-India, Natural gas futures dropped -5.21% to 229 on Tuesday’s session
“No matter who wins, we’re not going to see an overnight change in policy,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “From that standpoint, it would take some time for the oil market to reflect on what those new policies would be and their impact.”
Gold & Silver Markets (+ copper futures)
Gold traded higher around $1,900 an ounce on Tuesday, as the dollar lose some ground ahead of the US presidential elections
Silver traded more than 0.8% higher above $24 an ounce on Tuesday
Copper futures added 1.22% to $3.11 per pound on Tuesday
Copper is witnessing a bullish momentum due to a steady decline in stocks across exchange warehouses along with supply disruption in Chile due to an ongoing strike
US Gold futures (Comex) weakened to $1,892.20 an ounce in early Wednesday trade
US Spot Gold strengthened to $1,897.52 an ounce in early Wednesday trade
Silver futures (Comex) weakened to $23.56 an ounce in early Wednesday trade
Copper futures (Comex) weakened to $305.50 per pound in early Wednesday trade
In India, Spot Gold strengthened to INR 50,725 per 10 grams in early Wednesday trade
“We think there will be ongoing downward pressure on gold prices in the near term as the dollar finds support from global growth concerns,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia. “There is a high risk of a double-dip recession in the euro zone because governments are reinstating broad-based lockdown measures.”
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.92% trading at 1,208 ; with major demand seen in Castor Seed and Mustard Seed futures on Tuesday
Currency Markets
The dollar index traded lower around 93.5 on Tuesday, moving away from a 4-week high of 94.1 in the previous session
USD strengthened on Wednesday early morning, with currency index adding 0.15% against its G-10 peers, at 94.150
INR strengthened 0.03% with USD-INR at 74.4063
JPY strengthened 0.08% with USD-JPY at 104.6400
CNY strengthened 0.19% with USD-CNY at 6.6784
EUR strengthened 0.68% with EUR-USD at 1.1720
GBP strengthened 0.94% with GBP-USD at 1.3039
SEK strengthened 0.45% with USD-SEK at 8.8663
| 3-Month LIBOR Rate | As on 03 Nov 2020 |
| US DOLLAR | 0.22 per cent |
| Euro | – 0.53 per cent |
| British Pound | 0.04 per cent |
| Swiss Franc | – 0.77 per cent |
| Japanese Yen | – 0.10 per cent |
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Up 4 basis points at 0.88%
Canada : Up 5 basis points at 0.68%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Up 2 basis points at -0.63%
United Kingdom : Up 4 basis point at 0.25%
France : Flat at -0.35%
Italy : Down 2 basis points at 0.72%
Spain : Down 1 basis point at 0.11%
Netherlands : Up 2 basis points at -0.51%
Asia Pacific : 10-Year Govt Bond Yields
India : Up 1 basis point at 5.90%
Japan : Flat at 0.04%
Australia : Down 5 basis points at 0.77%
Hong Kong : Flat at 0.37%
Singapore : Up 1 basis point at 0.80%
South Korea : Flat at 1.62%
Fund Flows on NSE, BSE and MSEI – Nov 03 2020 (source NSE)
FII Net Buy Rs 2,274.4 Crore in Cash Market
DII Net Sell Rs (1,100.92) Crore in Cash Market
