Index Trend & Conditions
Major Resistance at 11,960 for Nifty50
Major Resistance at 24,600 for Bank Nifty
For Tuesday, Oct 13, Support at 11,650 and 11,800 with Resistance at 11,960 12,100 12,157 for Nifty50
Trends on SGX Nifty indicate a negative outlook for Nifty50 in India with a 30 points dip. The Nifty futures were trading at 11,930 on the Singaporean Exchange at 08:00 IST
S&P500 and Nasdaq futures trading in red territory, a negative Asia-Pacific early morning market and Indian benchmark indices at overbought level together with a strengthening dollar indicate a negative open for India
India Markets
| Nifty50 on Monday | Open 11,973 | High 12,022 | Low 11,867 | Close 11,931 |
Nifty50 on Monday climbed for the eighth session in a row but gave away most of the gains
The index closed the session with a decent gain of around 17 points or 0.14% to 11,931. It formed a spinning top candle on the daily scale, suggesting greater indecisiveness among investors at higher overbought levels.
It also tested the 12,000 level during the day. Nifty has to hold above 11,800 level to keep the underlying tone bullish,
witnessing a further bounce towards the 12,000 level
RSI is seen at above 60 with the ADX moving above 20, which is signalling that the index is to see a fast move on the upside. The market breadth is looking good, and with uncertainty of any reversal pattern on the upside, today’s spinning top can be nullified in the next sessions
Both IT and FMCG stocks were at the vanguard of the rally while Realty and PSU bank faltered the most
On the up side, crucial level or resistance is seen at 11,960 12,100 and 12,157 levels for the week starting 12th and a breach of 11,960 will bring further upside to the index
While, on the downside, support is seen at two points 11,650 and 11,800 for Tuesday
The S&P BSE Sensex added 84 points or 0.21% to close at 40,593 on Monday
Bank Nifty opened positive but lost points to close -0.56% lower at 23,712. Failing to hold on to the opening gains, it witnessed a decline of around 640 points from higher levels due to profit booking and headed towards 23,500 level. It formed a bearish candle on the daily scale and now it has to hold above 23,500 level (200-day EMA) to witness a strong move towards 24,500 level
India VIX jumped 3.67% from 20.38 to 21.12 level on Monday’s session
Broader market indices closed lower and underperformed their headline peers. The Midcap index closed with a loss of -0.58% while the smallcap index saw a fall of -0.68%
The overnight call money rate weighted average stood at 3.41% according to RBI data. It moved in a range of 1.80 – 3.90% as on Oct 12
Govt’s effort to stimulate consumer demand by offering advances and cash voucher schemes looks to be short-term in nature and lacks the commitment to have sustainable growth. FM Nirmala announced a payment of cash in lieu of LTC (leave travel concession) and Rs 10,000 festival advance to govt employees to stimulate consumer demand during the festival season. She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown
Shares of Mazagon Dock Shipbuilders made a stellar debut at the bourses with shares rallying over 49% from the issue price of Rs 145 per share
UTI AMC listed with a discount of more than 11% over its issue price of Rs 554 per share
Annual consumer price inflation in India increased to 7.34% in September of 2020 from 6.69% in August, well above market expectations of 6.88%
Americas
Wall Street traded higher on Monday, extending gains for the 4th straight session
The Dow Jones added 300 points or 1.06% to 28,888
The Nasdaq jumped 310 points or 2.68% to 11,891
The S&P 500 gained 61 points or 1.75% to 3,538
Russel 1000 Index rose 1.64% on the day, touching 1,975
Canada’s S&P/TSX Composite Index added 28 points or 2.10% to 16,563
Today in derivatives market, Dow futures slipped 95 points or -0.33%, S&P 500 futures fell 13 points or -0.38% and Nasdaq 100 futures dropped 36 points or 0.31%
Asia-Pacific Markets
The Nikkei 225 dropped 33 points or -0.14% to 23,526 in early Tuesday trade
Topix 500 dropped nearly 1 points or -0.10% to 1,266
Japan is planning to remove a ban on overseas travel to China and 11 other countries and regions including Taiwan, Australia, New Zealand, Singapore, South Korea, Vietnam and Malaysia next month while still advising against non-essential travel
South Korea’s Kospi added 12 points or 0.51% in morning trade at 2,390
Hong Kong’s Hang Seng Index added 530 points or 2.20% in morning trade to 24,650
China stocks climbed on Monday on optimism before President Xi Jinping’s address in the southern city of Shenzhen this week. Xi is expected to shore up plans to make southern China a global technology hub during the trip
Investors are optimistic on further reforms and upgrades for Shenzhen, which are expected to drive foreign capital inflows and enhance the tech sector
Hang Seng China Enterprises Index rose 270 points or 2.6% on Monday
Xiaomi surged as much as 6.4% to be among the best performers, while shares of telecoms also advanced
The CSI 300 Index added at least 2% for a second session after a long holiday on Monday
In China, Shanghai Composite Index fell 16 points or nearly 0.48% to open at 3,342 on Tuesday, on uncertainty toward the covid19 vaccine after Johnson & Johnson said Monday it had temporarily paused its virus vaccine candidate trials due to unexplained illness in a participant
China’s CSI 300 Index dropped 25 points or 0.53% to 4,798 in early trade
Australia’s S&P/ASX 200 added 12 points or 1.27% to 6,210 in early trade
Singapore’s Straits Times Index added 12 points or 0.46% to 2,554
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is up 0.89%
EU Markets
European stocks closed mostly higher at the end of a volatile session on Monday
The pan-European Stoxx 600 index added 0.95% at 372
Stoxx 50 added 25 points or 0.76% to close at 3,298
Germany’s DAX30 added 87 points or 0.67% at 13,138
London’s FTSE 100 dropped 15 points or -0.25% to close at 6,001
France’s CAC40 added 32 points, or 0.66% to end at 4,979
Denmark’s OMX Copenhagen 20 Index added 29 points or 2.09% at 1,439
Luxembourg’s LuxX Index added 6 points or 0.55% at 1,082
Sweden’s OMX Stockholm 30 Index added 15 points or 0.83% at 1,855
Italy’s FTSE MIB Index added 123 points or 0.63% at 19,719
Spain declared a state of emergency in Madrid and nearby cities, and more restrictions on public life and businesses were imposed
Britain announced a three-tier system of further restrictions to be imposed on parts of England, while Italy will probably announce new restrictions as infections climb to levels last seen in March
Oil & Natural Gas Markets
Brent crude hovered below $43 a barrel on Monday, as a spike in coronavirus infections and prospects of further lockdowns in several countries across the globe raised concerns about fuel demand recovery
Oil markets are under pressure as production in Libya is expected to rise to 355,000 barrels per day after force majeure at the Sharara oilfield was lifted on Sunday
WTI Crude dropped -0.02% to $39.47 per barrel in early Tuesday trade
Brent Crude dropped -0.01% to $41.76 per barrel in early Tuesday trade
Natural Gas futures dropped all gains on Tuesday early morning at $3.118 per mmbtu
On MCX-India, Crude oil futures added 0.38% to 2,897 in early Tuesday trade
On MCX-India, Natural gas futures dropped -2.35% to 208 in early Tuesday trade
Gold & Silver Markets
Gold traded around $1,925 an ounce on Monday, retreating from a three-week high of $1,932 hit earlier in the session, as the uncertainty over a new US stimulus package lingers
Silver traded around the flat line at $25.1 an ounce on Monday, having hit a three-week high of $25.6
US Gold futures (Comex) weakened -0.59% to $1,917 an ounce in early Tuesday trade
US Spot Gold dropped -0.61% to $1,911 an ounce
Silver futures (Comex) dropped -1.53% to $24.89 an ounce
In India, Spot Gold dropped -0.58% to INR 50,056 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.10% trading at 1,166.95 ; with major gains in Cotton Seed and Mustard Seed futures on Monday
Currency Markets
USD unchanged on Monday’s trading session, with currency index adding 0.02% against its G-10 peers, at 93.08, as investors await further developments on a new coronavirus aid bill
US Dollar LIBOR Three Month Rate was at 0.22% on Monday Oct 12
INR weakened -0.19% with USD-INR at 73.2712
Indian currency INR has been under pressure due to surging covid cases and held on to losses on Monday after economic data showed that retail price inflation rate accelerated to 7.34% in September, remaining above the central bank’s target range of 2-6% for a sixth straight month, in addition to industrial production contracting 8% in August
JPY strengthened 0.31% with USD-JPY at 105.2900
CNY weakened -0.76% with USD-CNY at 6.7459
The People Bank of China cut the forex risk reserve ratio for forward contracts to 0% from 20% during the weekend. The reduction, which effectively lowers the cost of shorting the Chinese currency, came after a recent sharp rally for the yuan. The currency strengthened since mid-May as investors rush to buy Chinese assets and debt amid signs of a faster and sustained economic recovery
EUR weakened -0.17% with EUR-USD at 1.1806
GBP strengthened 0.24% with GBP-USD at 1.3067
SEK weakened -0.26% with USD-SEK at 8.8048
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Flat at 0.77%
Canada : Up 1 basis points to 0.62%
Brazil : Flat at 7.95%
Mexico : Down 7 basis points to 5.99%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 2 basis point to -0.55%
United Kingdom : Down 1 basis point to 0.27%
France : Down 2 basis points to -0.29%
Netherlands : Down 2 basis points to -0.45%
Asia Pacific : 10-Year Govt Bond Yields
India : Down 4 basis points to 5.90%
Japan : Flat at 0.02%
Australia : Flat at 0.84%
Hong Kong : Flat at 0.35%
Singapore : Flat at 0.88%
South Korea : Flat at 1.53%
Fund Flows on NSE, BSE and MSEI – Oct 12, 2020 (source NSE)
FII Net Buy Rs 615.17 Cr in Cash Market
DII Net Sell Rs 1,028.77 Cr in Cash Market
