- Global Market Movers 22 Sep 2020

11,550 and 11,650
Major resistance for Nifty50 for the next couple of sessions

Trends on SGX Nifty indicate a dull opening for the Nifty50 in India with a 22 points gain. The Nifty futures were trading at 11,266 on the Singaporean Exchange at 08:40 IST

Global selloff aided Monday’s tanking of Sensex and Nifty50. HSBC’s $80M ponzi scandal, Britain’s consideration of a second national lockdown due to resurgence in coronavirus cases and France’s new daily record of 13,215 covid cases were the key contributors

INDIA MARKETS

Nifty50 with other domestic indices raced for the third close in the red on Monday, losing 254 points or 2.21% and barely settling at 11,250 level
BSE plunged 811 points or 2.09% to close at 38,034 level
Nifty50 broke key supports at 11,430 11,380 and 11,300 to record the lowest daily close in eight sessions
The index formed a large Bearish candle on the daily chart and closed below its 50-day EMA of 11,274; which might witness consolidation or selling pressure in the next sessions
Nifty50 index also saw a negative crossover on the momentum indicator MACD, with 12-day EMA diverging further below the 26-day EMA – suggesting weakness ahead
A sustained trade below 11,270 level can drag the Nifty50 index to 11,200 – 11,180 in the near term
Upside hurdles are shifting lower towards 11,300 – 11,430 zone
India VIX jumped up 10.69% on Monday’ s session from 20.05 to 22.19 level reflecting heightened volatility in the market
A sudden surge in volatility indicates more weakness with a capped upside
Sectorally, all major indices closed the day in red
Nifty Realty was the biggest sectoral loser, was down 5.6% followed by Nifty Metal that dropped 5.16%. Nifty Pharma fell 4.23%, Nifty PSU Bank down 4.20%, Nifty Auto fell 4.04%, Nifty FMCG down 3.02% and Nifty Energy lost 2.60%
Bank Nifty continued its weakness for the third consecutive session and drifted towards the 21,250 level – forming a bearish candle on the daily scale
India 10 Year bond yield rose 0.96% to 6.066
The overnight call money rate weighted average stood at 3.41% according to RBI data. It moved in a range of 2.40 – 3.80%

US MARKETS

The Dow Jones Industrial Average continued the September selloff on Monday dropping 510 points or 1.84% on the index to close at 27,147.7
The S&P 500 lost 38 points or 1.16% to close at 3281.1, first 4-day losing streak since Feb
Nasdaq Composite opened gap-down at 10,607 and gained 171 points to close at Friday’s close of 10778.80
Russel 1000 Index Growth shed 20 points or 1.07% to close at 1,828.17
Today in derivatives market, Dow Jones, S&P 500 and Nasdaq 100 futures are all trading flat
Technology stocks rallied to close at Friday’s close after opening gap-down

ASIAN MARKETS

Asian markets remain flat with a negative bias
In Japan, the financial markets were shut on Tuesday for a public holiday
South Korea’s Kospi dropped 04 points or 1.22% in early morning trade
Hong Kong’s Hang Seng Index opened gap-down and is trading at 23,862 after falling 533 points or 2.00% on Monday
In China, Shanghai Composite opened gap-down to trade at 3,298 after losing 32 points or 1.00% on Monday
Meanwhile, Australia’s S&P/ASX 200 lost 52 points or 0.89% in morning trade at 5,770 – forming a belt down bearish candle on the day scale
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, traded 0.11% lower

EU MARKETS

European stocks fell the most since July as investors worried about tighter virus restrictions and a report detailing suspicious transactions at international banks
The pan-European Stoxx 600 provisionally ended 3.2% lower by the closing bell on Monday
Stoxx 50 saw bearish belt-hold pattern, plunging 122 points or 3.74% to close at 3161
The banks plunged 5.7% and travel stocks tumbled 5.2% to lead losses
UK govt scientists warned that we could see 50k new covid cases per day in mid-October
Germany’s DAX extends losses to 4.37% by the closing bell, most since Mar 27

OIL & NATURAL GAS MARKETS

Oil prices plunged more than 4% on Monday forming a big bearish candle
A potential return of Libyan production bolstered oversupply fears
Today, Brent crude is trading down 0.24% at 41.56 a barrel, fall from close of $43.05 on Friday
Today, U.S. WTI crude is trading down 0.29% at 39.65 a barrel, fall from close of $40.87 on Friday
Today, Natural Gas CFDs have dropped 0.95% to trade at 2.707, after rising 4.23% on Monday’s trade
India’s Crude oil future lost 4.54% on Monday’s trade
India’s Natural gas futures was down 10.43% with a greater divergence seen in the 12-day MACD momentum indicator – bolstering bearish strength

GOLD & SILVER MARKETS

Gold slumped over 3% on Monday
Uncertainty over more US fiscal stimulus along with a stronger dollar impacted prices
US gold futures traded down 2.75% at 1,909.60 on Tuesday’s early morning trade
Spot gold dropped 2.1% to $1,909.05 per ounce
Silver plunged 8.3% to $24.53, its lowest level in over a month
Gold prices in India have remained choppy in recent weeks after hitting a record high of over 56,000 last month
On MCX, gold futures tumbled 2.7% or 1,500 to 50,300 per 10 gram
On MCX, silver futures crashed 9% or 6,000 to 61,802 per kg

INDIA – NCDEX Agridex

Agricultural futures index tracking the performance of the 10 liquid commodities, was down 0.40% or 4.55 points at 1,140.40 ; led by gains in guar gum and castor seed

US DOLLAR

US dollar strengthened, with currency index rising 0.59% on Tuesday against its G-10 peers, from 92.994 to 93.548
Euro/USD levels falling on early morning trade on Tuesday, trading at 1.1761, with Euro weakening
The Japanese yen strengthened by 0.10% on Tuesday trade versus the greenback at 104.54 per dollar
Sterling was last trading at $1.2815, down 0.01% on the day, with sterling weakening
USD/INR opened at 73.528 and closed 05 cents higher on Monday, settling below the 75-per USD mark at 73.57
CNH, the offshore yuan, stands at 6.8056 to the USD, down 0.09% with dollar weakening to CNH

US TREASURY

Yields on the benchmark 10-year Treasury note is trading at 0.668%, down from Monday’s open at 0.699%
The 30-year bond yield is trading at 1.418%, down from Monday’s open at 1.454%

FUND FLOWS on 21.09.2020 (source NSE)