Index Trend & Conditions
Major Resistance created at 11,970 and 12,100 for Nifty50
For Friday, Oct 23, Support at 11,800 with Resistance at 11,938 11,970 and 12,020 for Nifty50
Trends on SGX Nifty indicate a positive outlook for Nifty50 in India with a 37 points gain. The Nifty futures were trading at 11,929 on the Singaporean Exchange at 09:00 IST
Dow Jones, S&P500 and Nasdaq futures trading flat on the day, a mixed outlook of Asia-Pacific early morning market, and a strengthening dollar on the day indicate a muted start with a negative bias for Indian benchmark indices
India Markets
| Nifty50 on Thursday | Open 11,890 | High 11,939 | Low 11,823 | Close 11,896 |
Nifty50 lost 41 points or 0.35% on Thursday to close at 11,896
The index traded inside the lower shadow range of last session, witnessing sideways movement in a 60-70 points range, as every decline got bought into
The support of 11,800 has been respected yet again, which is a confirmation that the underlying tone continues to remain bullish
The index formed a Doji candle and an Inside Bar on the daily scale indicating a tug of war between the bulls and the bears to get a decisive range breakout from the 11,800-12,000 zone
Nifty now seems to be moving in a closed range between 12,000 and 11,777
As Nifty has been shadowing Dow Jones Industrial Average index on the US market very closely, so any higher top reversals made on the benchmark US index could put supply pressures on Nifty and restrict upside momentum in the shorter term
Both Energy and Telecom stocks were at the vanguard of the rally while Pharma and IT stocks faltered the most
On the up side, crucial level or resistance is seen at 11,938 11,970 and 12,020 for Friday
While, on the downside, support is seen at 11,800 for Friday
The BSE Sensex index closed down more than 140 points or -0.4% at 40,558 on Thursday
Bank Nifty opened in the negative and remained consolidative with a zigzag move through the day. Most of the banking stocks traded flat and settled the session with a 150-point loss
Bank Nifty has witnessed a strong resistance level at 24,581
India VIX fell 1.22% from 22.915 to 22.635 level
Broader market indices closed higher on the day. The Midcap index closed with a rise of 0.62% while the smallcap index closed with a gain of 0.78%
Options data suggested a wider trading range between 11,500 and 12,000 levels, while the immediate trading range lay between 11,700 and 12,100 levels
The overnight call money rate weighted average stood at 3.22% according to RBI data. It moved in a range of 1.80 – 3.60% as on Oct 21
Bajaj Auto reported 19% drop in September quarter net profits, following which the scrip slipped 0.63%
Asian Paints, which reported its numbers post market hours, slipped 0.67%
Dr Reddy’s Labs suffered a data breach which impacted its operations globally
SBI Card said in a press release that the Gross NPAs spiked sharply to 4.29% from 1.2% in June 2020 and was higher than the 2.33% reported
Americas
Wall Street closed in the green, as coronavirus stimulus talks pointed to progress amid rising cases in the US and Europe
On the policy side, House Speaker Nancy Pelosi said a deal on new aid was “just about there,” adding that both sides have yet to reach an agreement on certain issues, including state and local government funding
The Dow Jones gained 154 points or 0.6% to 28,365
The S&P 500 climbed 18 points or 0.5% to 3454
The Nasdaq added 21 points or 0.2% to 11,506
Russel 1000 Index added 0.57%, touching 1,929
Canada’s S&P/TSX Composite Index fell 49 points or -0.30% to 16,279
Today in derivatives market, Dow Jones, S&P500 and Nasdaq 100 futures are trading flat
On the corporate front, earnings from Coca-Cola beat forecasts while those from AT&T came in line with expectations
Tesla quarterly results released late on Wednesday also topped estimates, while Kimberly Clark came slightly below forecasts
Goldman Sachs admitted its role in the biggest foreign bribery case in US enforcement history, reaching multiple international settlements to end probes into its fundraising for the scandal-plagued Malaysian fund known as 1MDB
The new penalty tab exceeds $5 billion now, owed to authorities and regulators in the US, UK, Hong Kong and Singapore
Gilead Sciences’s antiviral therapy remdesivir on Thursday became the first drug to obtain formal clearance from the US Food and Drug Administration for treating the coronavirus
Asia-Pacific Markets
Asian stocks looked set for a mixed start as traders readied for the final presidential debate
The Nikkei 225 added 50 points or 0.21% to 23,523 in early Friday trade
Topix 500 added 1 point or 0.07% to 1,251 in early Friday trade
South Korea’s Kospi added 8 points or 0.34% in morning trade at 2,363
In Hong Kong, the Hang Seng Index added 153 points or 0.62% to 24,939 in early Friday trade
China’s CSI 300 Index added 12 points or 0.26% to 4,790 in early Friday trade
Hang Seng China Enterprises Index added 67 points or 0.67% at 10,152 in early Friday trade
Shanghai Composite Index added 6 points or 0.20% at 3,319 in early Friday trade
Traders paid little to no attention to reports that China’s commercial banks purchased a net $4 billion foreign exchange in September, compared with a net sale of $3.8 billion in August
Australia’s S&P/ASX 200 dropped 7 points or -0.12% to 6,166 in early trade
Australian manufacturing activity grew at a weaker rate in October and missed market consensus
Singapore’s Straits Times Index added 6 points or 0.24% to 2,534
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -0.63%
Market participants tracked US equities lower after IMF on Wednesday downgraded its forecast for Asia-Pacific region to a contraction of 2.2% in 2020
China’s top security regulator approved the Shanghai leg of Ant Group’s dual IPO, the final hurdle for what is likely to be the world’s biggest IPO ever with the company set to split its stock issuance equally across Shanghai and Hong Kong
Japan-based ANA Holdings Inc ended down 4.08%, trading at the lowest level in more than two months after reports that the company will book a record net loss as the pandemic devastates global travel
China’s fast-growing $157 billion market for exchange-traded funds will be directly accessible to overseas investors from Friday, at least four years since the plan was first hatched
Japanese government is considering an exemption of coronavirus-related quarantine requirements for business travellers
EU Markets
European stocks ended at fresh one-month lows on Thursday, as rising COVID-19 cases across Europe and the lack of progress in US stimulus negotiations outweighed better than expected earnings
The pan-European Stoxx 600 index dropped -0.14% at 358 on Thursday
Stoxx 50 dropped -0.29% to close at 3,171 on Thursday
Germany’s DAX30 dropped 15 points or -0.12% at 12,543 on Thursday
London’s FTSE 100 added 9 points or 0.16% to close at 5,785 on Thursday
France’s CAC40 dropped 3 points, or -0.05% at 4,851
Denmark’s OMX Copenhagen 20 Index dropped 12 points or -0.85% at 1,375
Luxembourg’s LuxX Index added 1.49% at 1,082
Sweden’s OMX Stockholm 30 Index dropped -0.14% at 1,818
Italy’s FTSE MIB Index dropped 23 points or -0.12% at 19,062
The number of infections rose at record rates in several countries, with Spain and France becoming the first Western European countries to exceed 1 million infections
On the corporate front, better than expected 3rd Quarter earnings were released by electrical equipment group Schneider Electric SE, consumer group Unilever, Swedish bank SEB, Norway’s DNB, and biofuel producer and oil refiner Neste
However, results from Swedish hygiene products group Essity disappointed
On the economic data front, German consumer morale deteriorated heading into November and came in weaker than expected. France’s business morale deteriorated in October, with confidence among manufacturers coming weaker than expected
On Thursday, Italy reported 16,078 new cases, up from yesterday’s record of 15,199
STMicroelectronics reported that net revenues were $2.67 billion in Q3, up 4.4% compared to a year ago
On the monetary policy front, Bank of England deputy governor Dave Ramsden said now was not the time to cut interest rates below zero as the UK economy and the financial system are already grappling with the effects of an unprecedent crisis
On the economic data front, German consumer morale deteriorated heading into November, and came in weaker than market expectations
Oil & Natural Gas Markets
WTI and Brent crude cut early losses and were up 2% and 1% respectively to trade above $42 a barrel on Thursday
Data from the EIA showed crude oil stockpiles in the US fell by 1.001 million barrels last week, slightly less than market expectations of a 1.021 million barrels
The liquified natural gas market is trading higher on the back of growing demand ahead of the upcoming winter season
WTI Crude is trading at $40.62 per barrel in early Friday trade
Brent Crude is trading at $42.44 per barrel in early Friday trade
Natural Gas futures dropped -0.76% in early Friday trade at $2.986 per mmbtu
On MCX-India, Crude oil futures dropped to 2,998 in early Friday trade
On MCX-India, Natural gas futures dropped to 219 in early Friday trade
Gold & Silver Markets (+copper futures)
Gold traded lower below $1,900 an ounce on Thursday, moving away from a one-week high of $1,931 an ounce
Silver traded lower below $25 an ounce on Thursday, moving away from a one-week high
US Federal Reserve Governor Lael Brainard said on Wednesday that the recovery remains highly uncertain and uneven, emphasizing the need for additional fiscal support
Meanwhile, Copper futures continued the upward momentum in October, trading above $3.11 per pound, the highest since June of 2018 supported mostly by stronger demand from China and worries about supply disruptions in Chile
Workers at Chile’s state-run Codelco, the world’s largest copper producer, reject layoffs announced by the company during the pandemic
US Gold futures (Comex) weakened to $1,907 an ounce in early Friday trade
US Spot Gold weakened to $1,905 an ounce
Silver futures (Comex) weakened to $24.76 an ounce
Copper futures (Comex) strengthened to $315.45 per pound
In India, Spot Gold weakened to INR 50,165 per 10 grams
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.41% trading at 1,188.10 ; with major gains in Refined Soya Oil and Guar Gum futures on Thursday
Currency Markets
The dollar index traded higher around 92.9 on Thursday. The dollar has been weakening since mid-May and is down near 5% on the year amid rising optimism about the global economic recovery, specially a robust rebound in China
INR strengthened 0.06% with USD-INR at 73.5388
INR is weighed down by dollar purchases by two large state-run banks, likely on behalf of the RBI to prevent a sharp appreciation in the local currency
JPY weakened -0.26% with USD-JPY at 104.8600
Investors moved into the safe-haven Yen after the IMF downgraded its forecast for Asia-Pacific region to a contraction of 2.2% in 2020
CNY weakened -0.51% with USD-CNY at 6.6851
Chinese Yuan has been rallying since mid-May as investors rush to buy Chinese assets and debt amid signs of a faster and sustained economic recovery
The People’s Bank of China already attempted to lower the cost of shorting the currency, and stop the rally by lowering the risk reserve ratio for FX forwards trading to 0%
EUR weakened -0.24% with EUR-USD at 1.1832
GBP weakened -0.44% with GBP-USD at 1.3091
UK chancellor Rishi Sunak told Parliament that the government would share more of the burden for paying employees’ wages for businesses hit by strict restrictions measures, offer more money to hospitality companies and give extra help for the self-employed as part of a package of additional stimulus unveiled on Thursday
SEK weakened-0.46% with USD-SEK at 8.7666
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Up 2 basis points at 0.85%
Canada : Up 2 basis points at 0.64%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Up 2 basis points at -0.57%
United Kingdom : Up 4 basis points at 0.28%
France : Up 3 basis points at -0.29%
Netherlands : Up 2 basis points at -0.47%
Asia Pacific : 10-Year Govt Bond Yields
India : Flat at 5.91%
Japan : Flat at 0.02%
Australia : Up 1 basis point at 0.81%
Hong Kong : Flat at 0.35%
Singapore : Down 1 basis point at 0.84%
South Korea : Down 2 basis points at 1.50%
Fund Flows on NSE, BSE and MSEI – Oct 21 2020 (source NSE)
FII Net Buy Rs 1,118.46 Cr in Cash Market
DII Net Sell Rs -2,019.87 Cr in Cash Market
