Index Trend & Conditions
Major Resistance created at 11,960 and 12,100 for Nifty50
For Friday, Oct 16, Support at 11,600 and 11,650 with Resistance at 11,960 for Nifty50
Trends on SGX Nifty indicate a positive outlook for Nifty50 in India with a 60 points jump. The Nifty futures were trading at 11,755 on the Singaporean Exchange at 08:00 IST
Dow Jones, S&P500 and Nasdaq futures trading in green, a muted Asia-Pacific early morning market, a Bearish Engulfing pattern on Thursday’s Nifty50 trade with deteriorating market breadth and a strengthening dollar indicate a positive start with a muted bias for Indian benchmark indices
India Markets
| Nifty50 on Thursday | Open 12,023 | High 12,025 | Low 11,661 | Close 11,680 |
Nifty50 tumbled nearly 300 points on Thursday, worst daily drop since September 24th, as investors paused for breath after a 10-day winning streak
The index lost 290 points or 2.43% at 11,680 forming a large Bearish Engulfing candle
Nifty50 has broken the support at 11,800 level, below which we can see corrective downswing towards 11,300
On the weekly time frame, the index has formed a near – Dark Cloud Cover pattern, which signifies the trend reversal
Any rally towards the 11,800-850 range will remain vulnerable to sell-off
RSI indicator has dipped below the 60 mark, suggesting loss of momentum
On an hourly time frame, the index has broken below a Double Top pattern
On the up side, crucial level or resistance is seen at 11,960 for Friday
While, on the downside, support is seen at two points 11,600 and 11,650 for Friday
The S&P BSE Sensex lost 1,066 points or 2.61% to close at 39,728 on Thursday
Equity investors lost Rs 3.3 lakh crore in Thursday session as total market cap of BSE-listed companies slid to Rs 157.22 lakh crore
Bank Nifty opened positive, but failed to hold above the 24,000 mark and corrected sharply towards the 23,000 level. The index has formed a Bearish Engulfing Pattern
India VIX moved up 9.14% from 20.21 to 22.02 levels on Thursday’s session
Broader markets sank under pressure. The Midcap index closed with a drop of -1.70% while the smallcap index saw a drop of -1.56%
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 14
Major factors that led to Thursday’s market correction are – (a) fading hopes of fresh stimulus in the world’s largest economy after US Treasury Secretary Mnuchin said that it would be difficult to reach a deal on coronavirus aid package before the November election, (b) prospects for economic recovery were dampened as governments across Europe tightened restrictions to curb a second wave of infections, (c) US State Department submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist
Americas
Wall Street closed in red for a third straight session on Thursday after report showed initial jobless claims rose the most in 7 weeks and well above forecasts, with 898 thousand American workers filled for jobless benefits last week
The Dow Jones retreated 20 points or 0.1% to 28,494
The Nasdaq dropped 55 points or 0.5% to 11,714
The S&P 500 lost 5 points or 0.2% to 3483
Russel 1000 Index dropped 3 points on the day, touching 1,947
Today in derivatives market, Dow futures added 58 points or 0.20%, S&P 500 futures added 9 points or 0.27% and Nasdaq 100 futures added 39 points or 0.33%
On Thursday, Treasury Secretary Steven Mnuchin said that the White House won’t let differences over funding targets for coronavirus testing detail aid negotiations
Meanwhile, France declared a public health emergency and the United Kingdom extended lockdowns
On the corporate side, United Airlines posted a $1.8 billion net lost, dragged by the pandemic slump
Asia-Pacific Markets
Shares fell in Asia on Friday, tracking a retreat on Wall Street as rising coronavirus cases in the US and Europe and doubts over another round of coronavirus-related fiscal stimulus in Washington rattled sentiment. Still, bullish investors have focused on improvements in corporate profits as the economic recovery from the pandemic continues
The Nikkei 225 added 14 points or 0.06% to 23,521 in early Friday trade
Topix 500 dropped nearly 4 points or -0.32% to 1,255 in early Friday trade
South Korea’s Kospi dropped 13 points or -0.56% in morning trade at 2,347
Hong Kong’s Hang Seng Index added 216 points or 0.88% in morning trade to 24,370
China’s CSI 300 Index added 2 points or 0.04% to 4,800 in early trade
Hang Seng China Enterprises Index added 134 points or 1.37% at 9,894 on Friday
Shanghai Composite Index added 6 points or nearly 0.19% at 3,335 in early Friday trade
Australia’s S&P/ASX 200 dropped 9 points or -0.14% to 6,201 in early trade
Singapore’s Straits Times Index added 16 points or 0.62% to 2,539
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -1.14%
For stocks in Australia, investors were optimistic as RBA governor Philip Lowe, speaking at the Citi Group annual investment conference on Thursday, said further monetary easing would support jobs growth and alleviate currency pressures, noting that “as the economy opens up, it is reasonable to expect that further monetary easing would get more traction than was the case earlier”
The US government said on Wednesday that financial institutions doing business with those deemed responsible for undermining Hong Kong’s autonomy may face sanctions
EU Markets
European stocks tumbled on Thursday as investors remained concerned about the negative impact of a second wave of coronavirus infections and additional lockdown measures on Europe’s recovery
The pan-European Stoxx 600 index dropped -1.87% at 362
Stoxx 50 dropped -2.46% to close at 3,192
Germany’s DAX30 dropped 324 points or -2.49% at 12,703
London’s FTSE 100 dropped 102 points or -1.73% to close at 5,832
France’s CAC40 dropped 104 points, or -2.11% to end at 4,837
Denmark’s OMX Copenhagen 20 Index dropped 26 points or -1.83% at 1,408
Luxembourg’s LuxX Index dropped 21 points or -2% at 1,056
Sweden’s OMX Stockholm 30 Index dropped 27 points or -1.52% at 1,812
Italy’s FTSE MIB Index dropped 542 points or -2.77% at 19,065
Germany announced limits on the number of people at private gatherings and a curfew for bars and restaurants in areas deemed hotspots, while French authorities said that a 9pm-6am curfew would be imposed in Paris and eight other cities
Northern Ireland will enter four-week lockdown on Friday, closing schools, pubs and restaurants as part of new restrictions
Stocks in UK were also pressured by ex-dividend trading, with business supplies distributor Bunzl and Britain’s biggest retailer Tesco falling as they traded without dividend
Oil & Natural Gas Markets
WTI crude futures cut some of its early losses to trade around $40.6 a barrel on Thursday, after data from the EIA showed crude oil stockpiles in the US fell by 3.818 million barrels last week, more than market expectations of a 2.835 million drop
Brent crude futures cut some losses on Thursday afternoon, still trading almost 2% lower at $42.5 per barrel, after data from both the EIA and API showed a larger-than-expected draw in US crude oil inventories last week. Prices have been under high pressure amid concerns about fuel demand recovery, as a spike in global coronavirus infections led several countries to reimpose restrictions including Germany, France, Spain and Italy
WTI Crude dropped -0.35% to $40.66 per barrel in early Friday trade
Brent Crude dropped -0.40% to $42.81 per barrel in early Friday trade
Natural Gas futures dropped 0.89% in early Friday trade at $2.776 per mmbtu
On MCX-India, Crude oil futures dropped -0.33% to 2,994 in early Friday trade
On MCX-India, Natural gas futures added 3.35% to 204 in early Friday trade
Gold & Silver Markets
Gold hovered around $1,900 an ounce on Thursday, but below three-week highs reached on Monday, amid a strengthening dollar
Initial jobless claims in the US were the highest in near 2 months, raising fears of a stalling economic recovery
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) strengthened to $1,911 an ounce in early Friday trade
US Spot Gold strengthened to $1,908 an ounce
Silver futures (Comex) strengthened to $24.41 an ounce
In India, Spot Gold strengthened to INR 50,045 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was down -0.09% trading at 1,156.85 ; with major gains in Soy Bean and Guar Seed futures on Thursday
Currency Markets
The dollar index strengthened to around 93.8 on Thursday, amid a general risk-aversion sentiment
Initial jobless claims in the US were the highest in near 2 months, casting a shadow on economic recovery
Mounting coronavirus infections and further restrictions in Europe, Brexit worries, and an attempt from the PBoC to depreciate the yuan are pressuring the dollar up
USD strengthened on Thursday, with currency index adding 0.43% against its G-10 peers, at 93.80
INR weakened -0.11% with USD-INR at 73.3800
JPY weakened -0.22% with USD-JPY at 105.4000
CNY weakened -0.15% with USD-CNY at 6.7254
EUR weakened -0.36% with EUR-USD at 1.1704
GBP weakened -0.68% with GBP-USD at 1.2924
SEK weakened -0.52% with USD-SEK at 8.8678
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Flat at 0.73%
Canada : Down 2 basis points at 0.56%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 3 basis point at -0.61%
United Kingdom : Down 4 basis points at 0.18%
France : Down 2 basis points at -0.33%
Netherlands : Down 2 basis points at -0.51%
Asia Pacific : 10-Year Govt Bond Yields
India : Flat at 5.90%
Japan : Down 1 basis point at 0.01%
Australia : Down 7 basis points at 0.76%
Hong Kong : Flat at 0.29%
Singapore : Down 1 basis point at 0.86%
South Korea : Down 4 basis points at 1.47%
Fund Flows on NSE, BSE and MSEI – Oct 15, 2020 (source NSE)
FII Net Sell Rs 604.07 Cr in Cash Market
DII Net Sell Rs 808.29 Cr in Cash Market
