Index Trend & Conditions
Resistance at 11,900 for Nifty50
For Friday, Oct 9, Support at 11,650 and 11,800 with Resistance at 11,900 zone for Nifty50
Short-term trend of Nifty continues to be positive, the formation of Doji star pattern on Thursday 08 Oct, development of negative divergence and deteriorating market breadth at highs are all indicating the possibility of profit booking from the highs
Trends on SGX Nifty indicate a steady outlook for Nifty50 in India with a 16 points gain. The Nifty futures were trading at 11,865 on the Singaporean Exchange at 08:00 IST
US futures trading in green with positive Thursday session, a stable-to-negative Asia-Pacific early morning market and Indian benchmark indices at overbought level together with the dollar under pressure indicate a stable-to-positive open for India
India Markets
| Nifty50 on Thursday | Open 11,835 | High 11,905 | Low 11,791 | Close 11,834 |
Nifty50 on Thursday advanced for sixth day in a row with 96 points or 0.82% to 11,835
The index closed the session with a decent gain of around 100 points, but formed a Doji candle on the daily scale. It also tested the 11,900 level during the day. Nifty has to hold above 11,700 level to witness a further bounce towards 11,900 and 12,000 levels
Pharma and IT were at the vanguard of the rally while energy and FMCG faltered
On the up side, crucial level or resistance is seen at 11,900 zone for Friday and a breach of this level will bring further upside to the index
While, on the downside, support is seen at two points 11,600 and 11,800 for Friday
Sensex crossed the psychologically important 40,000-mark for the first time since August 31, 2020
Bank Nifty opened positive and headed towards the 23,500 level in the initial part of the session. However, it saw a dip of around 400 points from higher levels due to profit booking in last hour of trade, but still managed to close positive with a gain of around 1%. The index continued its winning streak for the sixth consecutive session. It made higher highs and lows for the fifth consecutive session and formed a Spinning Top candle on the daily scale, as it failed to hold at higher levels. Now it has to hold above 23,000 level to witness a bounce towards 23,500 and then 24,000 levels, while on the downside, key supports exist at 22,750 and 22,500 levels
India VIX marginally moved up by 1.60% from 20.06 to 20.38 levels
Broader market indices closed mixed and underperformed their headline peers. The Midcap index closed with a modest growth of 0.10% while the smallcap index saw a fall of 0.30%
The overnight call money rate weighted average stood at 3.44% according to RBI data. It moved in a range of 1.80 – 3.90% as on Oct 07
Americas
Wall Street traded higher on Thursday, as market participants continue to monitor stimulus negotiations
The Dow Jones Industrial Average rose 122 points, or 0.43%, to 28,426 ; highest level since early September
The Nasdaq Composite added 56 points, or 0.50%, to 11,421
S&P 500 outperformed with a 27 points, or 0.80% advance to 3,446
Russel 1000 Index rose 0.80% on the day, touching 1,926
Canada’s S&P/TSX Composite Index added 106 points or 0.65% to 16,535
Today in derivatives market, Dow futures added 124 points or 0.43%, S&P 500 futures added 0.46% and Nasdaq 100 futures added 0.46%
President Trump said on Thursday his administration and the Democrats were starting to have some very productive talks
Earlier in the week, Trump called for Congress to pass a new coronavirus aid bill to support airlines and companies and fund the Paycheck Protection Program, hours after abruptly halting stimulus talks
Asia-Pacific Markets
China’s yuan strengthened and stocks rose on mainland exchanges in a positive start to the month for traders returning to work after an eight-day holiday
The Nikkei 225 dropped 24 points or -0.10% to 23,623 in early Friday trade
Topix 500 dropped 6 points or -0.46% to 1,272
South Korea’s Kospi added 5 points or 0.21% in morning trade at 2,392
Hong Kong’s Hang Seng Index lost 49 points or -0.20% in morning trade to 24,145
In China, Shanghai Composite added 44 points or 1.35% to 3,261
China’s CSI 300 Index climbed 1.7% , with solar and technology stocks were among the biggest gainers in early trade
Australia’s S&P/ASX 200 dropped 4 points or -0.06% to 6,098 in early trade
Singapore’s Straits Times Index lost 2 points or -0.08% to 2,541
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is up 0.68%
Japan is set to conditionally exempt business travellers and returnees from the 14-day quarantine policy currently imposed on all overseas arrivals to stem the spread of the coronavirus, government sources said Wednesday
On the data front, household spending in Japan dropped 6.9% in real terms in August from the previous year following a 7.6% decline in the previous month
Traders are now looking ahead to Australia’s Financial Stability Review and the Chinese Caixin services data
EU Markets
European stocks closed higher on Thursday
The pan-European Stoxx 600 index added 0.91% at 367, with the market closing marginally above 200-day EMA on a day scale, on Thursday
Stoxx 50 added 22 points or 0.69% to close at 3,255
Germany’s DAX30 added 114 points or 0.88% at 13,042
London’s FTSE 100 added 32 points or 0.53% to close at 5,978
France’s CAC40 added 30 points, or 0.61% to end at 4,912
Denmark’s OMX Copenhagen 20 Index added 13 points or 0.83% at 1388
Luxembourg’s LuxX Index added 9 points or 0.79% at 1,088
Sweden’s OMX Stockholm 30 Index added 2 points or 0.12% at 1,841
The ECB’s account of September’s meeting showed that policymakers stand ready to take further action to support Europe’s economic recovery and inflation amid the COVID-19 crisis
Measures include cutting interest rates deeper into negative territory and changing the conditions of the TLTROs
Traders will also continue to monitor any progress on Brexit negotiations and on new stimulus in the US
Oil & Natural Gas Markets
Crude stages a comeback from October lows amid storm disruptions
WTI crude prices were up more than 3% to trade around $41.2 a barrel on Thursday as energy companies evacuated 183 offshore oil platforms and halt nearly 1.5 million barrels per day of output as Hurricane Delta heads toward the US Gulf Coast
WTI Crude added 2.90% to $41.20 per barrel
Brent Crude added 2.70% to $43.28 per barrel
Supporting prices further were prospects of more production outages in Europe’s North Sea due to a Norwegian workers’ strike over pay
Norway’s Lederne labour union will expand its ongoing oil strike from October 10th unless a wage bargain can be reached. The dispute began on September 30th when wage talks between Lederne and the Norwegian Oil and Gas Association collapsed
Natural Gas futures added 1.23% on Friday to $2.965 per mmbtu
On MCX-India, Crude oil futures rose 3.74% on Friday to 3025
On MCX-India, Natural gas futures added 1.57% on Friday, to close at 193
Oil is struggling to break free of its narrow trading range near $40 as fiscal stimulus talks in Washington have yet to result in any concrete action and while flagging demand has kept prices in check
Gold & Silver Markets
Gold prices were firm and rising on Friday as dollar is under pressure
US Gold futures (Comex) strengthened 0.83% to $1,910 an ounce on Friday
US Spot Gold rose 0.74% to $1,907 an ounce
Silver futures (Comex) added 1.88% to $24.33 an ounce
In India, Spot Gold added 0.75% to INR 49,891 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was down 1.01% trading at 1,160.80 ; with major gains in Cotton seed and Chana futures on Thursday
Currency Markets
USD stayed flat on Thursday’s trading session forming a doji, with currency index 0.02% against its G-10 peers, at 93.62
INR strengthened 0.12% with USD-INR at 73.2425
JPY weakened 0.03% with USD-JPY at 106.0100
CNY is flat due to holidays with USD-CNY at 6.7910
EUR weakened 0.08% with EUR-USD at 1.1754
GBP strengthened 0.15% with GBP-USD at 1.2939
SEK strengthened 0.18% with USD-SEK at 8.8699
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Down 2 basis points to 0.77%
Canada : Down 1 basis points to 0.61%
Brazil : Up 10 basis points to 7.97%
Mexico : Down 4 basis points to 6.13%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 3 basis points to -0.53%
United Kingdom : Down 1 basis point to 0.29%
France : Down 3 basis points to -0.26%
Netherlands : Down 3 basis points to -0.43%
Asia Pacific : 10-Year Govt Bond Yields
India : Flat at 6.01%
Japan : Flat at 0.03%
Australia : Up 3 basis points to 0.86%
Hong Kong : Flat at 0.36%
Singapore : Flat at 0.89%
South Korea : Flat at 1.53%
Fund Flows on NSE, BSE and MSEI – Oct 08, 2020 (source NSE)
FII Net Buy Rs 978.37 Cr in Cash Market
DII Net Buy Rs 19.85 Cr in Cash Market
