Index Trend & Conditions
Major Resistance at 11,960 and 12,100 for Nifty50
For Wednesday, Oct 14, Support at 11,800 with Resistance at 11,960 and 12,100 for Nifty50
Trends on SGX Nifty indicate a negative outlook for Nifty50 in India with a 45 points dip. The Nifty futures were trading at 11,896 on the Singaporean Exchange at 08:00 IST
S&P500 and Nasdaq futures trading flat, a negative Asia-Pacific early morning market, a Doji pattern on Tuesday’s Nifty50 and deteriorating market breadth with a strengthening dollar indicate a negative open for India
India Markets
| Nifty50 on Tuesday | Open 11,934 | High 11,988 | Low 11,888 | Close 11,934 |
Nifty50 traded flat on Tuesday, pausing after a 8-day rally
The index closed the session on an indecisive note with a Doji at 11,934. It had formed a spinning top candle on the daily scale on Monday’s session, suggesting greater indecisiveness in the market
Nifty50 seems to be consolidating above 11,777 , anything below that will trigger corrective downswing
It has to hold above 11,800 level to keep the underlying tone bullish, witnessing a further bounce towards the 12,000 level
Both IT and Energy stocks were at the vanguard of the rally while Pharma and PSU bank stocks faltered the most
On the up side, crucial level or resistance is seen at 11,960 and 12,100 levels for Wednesday
While, on the downside, support is seen at two points 11,800 for Wednesday
The S&P BSE Sensex added 31 points or 0.08% to close at 40,625 on Tuesday
Telecom index on the BSE fell -0.52% at 1,023
Bank Nifty lost points to close -0.93% lower at 23,492, slightly below its 200-day EMA. It formed a bearish candle on the daily scale and started forming lower highs by correcting about 1 per cent during the day
India VIX dropped 1.95% from 21.1275 to 20.7150 level on Tuesday’s session
Broader market indices closed lower and underperformed their headline peers. The Midcap index closed with a loss of -0.48% while the smallcap index saw a fall of -0.13%
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
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 closed in the red on Tuesday and the Dow snapped a 4-day winning streak, as investors brace the new earnings season and await any developments on the stimulus bill
The Dow Jones lost 158 points or -0.6% to 28,680
The Nasdaq dropped 12 points or -0.1% to 11,864
The S&P 500 declined 22 points or -0.6% to 3512
Russel 1000 Index dropped -0.52% on the day, touching 1,962
Canada’s S&P/TSX Composite Index dropped 52 points or -0.31% to 16,511
Today in derivatives market, Dow futures added 29 points or 0.10%, S&P 500 futures added 5 points or 0.16% and Nasdaq 100 futures added 48 points or 0.40%
On the macro side, the IMF warned of a “sharp adjustment” in financial markets despite revising its global growth forecast to -4.4% in 2020 from -4.9% in June, as GDP in advanced economies is now projected to drop 5.8% this year compared to -8.1% in June
Meanwhile, growth for emerging markets was revised to -3.3% from -3.1% for 2020, mainly explained by India’s sharp contraction
Asia-Pacific Markets
Traders will be watching a speech from Chinese President Xi Jinping in Shenzhen on Wednesday, where he is expected to lay out a vision for the region’s growth
Asian stocks were set for modest declines after American equities slipped, with little sign for a quick end to the stalemate over fresh US fiscal stimulus
The Nikkei 225 dropped 12 points or -0.06% to 23,588 in early Tuesday trade
Topix 500 dropped nearly 8 points or -0.66% to 1,264 in early Tuesday trade
South Korea’s Kospi added 17 points or -0.81% in morning trade at 2,390
Hong Kong’s Hang Seng Index added 80 points or -0.34% in morning trade to 24,568
China’s CSI 300 Index dropped 23 points or -0.46% to 4,816 in early trade
Hang Seng China Enterprises Index dipped 45 points or -0.46% at 9,833 on Tuesday
Australia’s S&P/ASX 200 added 4 points or -0.07% to 6,191 in early trade
Singapore’s Straits Times Index dropped 12 points or -0.49% to 2,555
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is up 0.12%
EU Markets
European stock markets fell from five-week highs on Tuesday
The pan-European Stoxx 600 index dropped -0.62% at 369
Stoxx 50 dropped 25 points or -0.57% to close at 3,279
Germany’s DAX30 added 119 points or -0.91% at 13,018
London’s FTSE 100 dropped 32 points or -0.53% to close at 5,969
France’s CAC40 dropped 32 points, or 0.64% to end at 4,947
Denmark’s OMX Copenhagen 20 Index was flat at 1,440
Luxembourg’s LuxX Index dropped 3 points or -0.26% at 1,078
Sweden’s OMX Stockholm 30 Index dropped 22 points or -1.18% at 1,833
Italy’s FTSE MIB Index dropped 160 points or -0.81% at 19,558
Britain’s government imposed on Monday a tiered system of further restrictions on parts of England, including closing several business activities in Liverpool
Weaker than expected data showed German investor morale deteriorated sharply in October amid concerns about rising covid cases, Brexit uncertainty and US election
Investors also awaited the US third-quarter earnings season starting this week and digest upbeat Chinese trade data
Oil & Natural Gas Markets
WTI and Brent crude futures were up on Tuesday, supported by latest robust data from China, which showed the world’s top crude oil importer took in 11.8 million bpd of oil in September, up 5.5% from August and up 17.5% from September last year, a positive sign for global demand
On the supply side, workers returned to US Gulf Coast platforms after Hurricane Delta, Norwegian workers to offshore rigs after ending a strike, while Libya lifted force majeure at its Sharara oilfield
IEA said in its World Energy Outlook that in its central scenario a vaccine and therapeutics could mean the global economy rebounds in 2021 and energy demand recovers by 2023
WTI Crude dropped -0.32% to $40.04 per barrel in early Wednesday trade
Brent Crude dropped -0.38% to $42.28 per barrel in early Wednesday trade
Natural Gas futures added 0.32% in early Wednesday trade at $3.087 per mmbtu
On MCX-India, Crude oil futures added 2.39% to 2,958 in early Wednesday trade
On MCX-India, Natural gas futures dropped -1.36% to 210 in early Wednesday trade
Gold & Silver Markets
Gold traded lower below $1910 an ounce on Tuesday, falling from 3-week highs reached on Monday, amid a stronger dollar and as investors await developments around a new US fiscal stimulus
Gold’s long-term outlook remains bullish amid expectations of a prolonged period of ultra-low interest rates coupled with the uncertainty over the economic recovery due to a recent spike in covid cases across major economies
US Gold futures (Comex) weakened at $1,892 an ounce in early Wednesday trade
US Spot Gold weakened at $1,893 an ounce
Silver futures (Comex) at $24.22 an ounce
In India, Spot Gold dropped to INR 49,610 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.10% trading at 1,153.30 ; with major gains in Chana and Guar Gum futures on Tuesday
Currency Markets
USD strengthened on Tuesday, with currency index adding 0.48% against its G-10 peers, at 93.48
INR weakened -0.10% with USD-INR at 73.3463
JPY weakened -0.19% with USD-JPY at 105.5300
CNY weakened -0.03% with USD-CNY at 6.7481
EUR weakened -0.60% with EUR-USD at 1.1742
GBP weakened -0.62% with GBP-USD at 1.2983
SEK weakened -0.04% with USD-SEK at 8.8129
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Down 4 basis points at 0.73%
Canada : Down 5 basis points at 0.58%
Brazil : Flat at 7.68%
Mexico : Flat at 5.76%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 1 basis point at -0.55%
United Kingdom : Down 4 basis points at 0.24%
France : Flat at -0.28%
Netherlands : Up 6 basis points at -0.45%
Asia Pacific : 10-Year Govt Bond Yields
India : Up 1 basis point at 5.90%
Japan : Flat at 0.03%
Australia : Down 2 basis points at 0.84%
Hong Kong : Flat at 0.35%
Singapore : Down 1 basis points at 0.87%
South Korea : Down 1 basis points at 1.52%
Fund Flows on NSE, BSE and MSEI – Oct 13, 2020 (source NSE)
FII Net Buy Rs 832.14 Cr in Cash Market
DII Net Sell Rs 1,674.46 Cr in Cash Market
