- Global Market Movers : 18 Sep 2020

11,440 – 11,620
Likely to be the range for Nifty50 for the next few sessions

Trends on SGX Nifty indicate a flat opening for the index with a positive bias in India with a 08 points gain. The Nifty futures were trading at 11,536 on the Singaporean Exchange at 08:00 IST
Global cues turned negative after a divided US Federal Reserve dented stimulus hopes

INDIA MARKETS

Nifty50 closed with a loss of 88 points at 11,516 while S&P BSE Sensex fell 323 points to 38,979 on Thursday
The initial support of the 20-day EMA is placed at 11,430 and a move below this can drag the Nifty to 11,200 – 11,180 in the near term
Sectorally, action was seen in healthcare and IT stocks while selling pressure was seen in real estate, metal, banking, capital goods and the power index
Unless the resistance of 11,600 is broken on close basis, we could see a broader range movement of ups and downs in the market
Going forward 11,440 – 11,620 is likely to be the range for Nifty over the next couple of sessions
India VIX moved up 2.24 per cent from 19.66 to 20.10 level
VIX needs to cool down below the 20-18 zone to get the bulls have a grip for the next leg of rally
Bank Nifty failed to surpass the immediate hurdle at 22,500 level and remained under pressure to fall towards the 22,250 level – forming an Inside Bar on the daily time frame
A hold below 22,000 level may drag the rate-sensitive index towards 21,750 and 21,500 levels
About 6.6 Mn white-collar professional jobs were lost during the period between May and Aug 2020 as per Centre for Monitoring Indian Economy (CMIE)
Govt permits up to 74% FDI under automatic route in defence sector

US MARKETS

The Federal Reserve on Wednesday vowed to keep interest rates near zero until inflation is on track
New economic projections showed economy shrinking 3.7% this year, far less than the 6.5% decline they forecast in June
Unemployment, which registered 8.4% in August, forecasted to drop to 7.6% by the end of the year
Nasdaq Composite falls 10% from record high of 12,066; closing at 10,910
S&P 500 fell 6% from record high of 3,588; closing at 3,357
The Dow Jones Industrial Average dropped 130 points or 0.47% to close at 27,902
Russel 1000 Index Growth shed 16 points or 0.87% to close at 1,866
Today in derivatives market, Dow Jones and S&P 500 futures are trading in red with Nasdaq 100 futures opening flat at 11,072

ASIA MARKETS

Asian markets defy US cues, trade with gains
In Japan, the Nikkei 225 gained 0.03% in early morning trade while the Topix index rose 0.30%
South Korea’s Kospi hovered above the flatline
Hong Kong’s Hang Seng Index is trading flat at 24,366 after falling 2.3% in the last two sessions
In China, Shanghai Composite index rose 0.20% trading at 3277
Meanwhile, Australia’s S&P/ASX 200 is trading muted at 5,879 with a 0.04% dip
Overall, the MSCI Asia ex-Japan index traded 0.27% higher
In Japan, shares of conglomerate Softbank Group slipped 1.13% while Sharp shed 0.45%
Over in South Korea, industry heavyweight Samsung Electronics’ stock gained 0.34% while Kakao advanced 0.54%

EU MARKETS

The pan-European Stoxx 600 provisionally dropped 0.4% by the closing bell
Banks fell 1.5% to lead losses as almost all sectors and major bourses slid into the red
Stoxx 50 saw hanging-man pattern on a sideways market, closing at 3316, 0.67% down

OIL MARKETS

Oil perked up as OPEC threatened to clamp down on member states that did not cut output
Brent crude is trading up 0.21% at $43.34 a barrel, fourth consecutive rise from $39.39
U.S. WTI crude gained 0.12% trading at $40.99 a barrel

GOLD MARKETS

Gold CFDs rebounded on Friday morning trade, up 0.38% at $1,951.37; after dropping 1.5% on Thursday
Spot gold was down 0.8% to $1,943.72 per ounce

US DOLLAR

US dollar weakened, with currency index dropped 0.21% on Thursday against its G-10 peers, falling from 93.574 to 92.909
Euro/USD levels muted at 1.1846
The Japanese yen weakened by 0.12% versus the greenback at 104.86 per dollar
Sterling was last trading at $1.2944, down 0.22% on the day, with sterling weakening
USD/INR opened at 73.4800 and closed 12 cents higher on Thursday, but settling below the 75-per USD mark at 73.6000
CNH, the offshore yuan, stands at 6.7655 to the USD, down 0.14% with dollar strengthening to CNH

US TREASURY

Yields on the benchmark 10-year Treasury note is trading at 0.684%, down from yesterday’s open at 0.698%
The 30-year bond yield is trading at 1.428%, down 2.4% from yesterday’s open at 1.463%

FUND FLOWS on 17 Sep 2020 (source NSE)