PREMISE
Support = 11,130 with Resistance = 11,244 and 11,300 for Nifty50 on Wednesday
Trends on SGX Nifty indicate a dull opening for the Nifty50 in India with a 2 points gain. The Nifty futures were trading at 11,161 on the Singaporean Exchange at 08:40 IST
Benchmark equity indices extended their slide to fourth day in a row on Tuesday due to concerns over resurgence of coronavirus cases in Europe, national lockdown considerations in Britain and fraud transactions of over $2 trillion by banks
Cities in France, Austria, Netherlands and UK have reported fresh wave of coronavirus cases
Wall Street snaps multi-day losing streak, close in green on Tuesday
Fed Reserve Chairman Jerome Powell said :
“Both employment and overall economic activity, however, remain well below their pre-pandemic levels, and the path ahead continues to be highly uncertain. The path forward will depend on keeping the virus under control and on policy actions taken at all levels of government.”
INDIA MARKETS
Nifty50 with other domestic indices raced for the fourth close in the red on Tuesday, losing 97 points or 0.86% and settling at 11,153
BSE dropped 300 points or 0.79% to close at 37,734 level
Nifty50 broke key support at 11,180 to record the lowest daily close since Aug 5
The index formed a semi-Bearish Belt hold candle on the daily chart – together with lower highs and lows for two consecutive sessions, suggesting a downward shift in supports
A close below its 50-day EMA of 11,274 confirms consolidation or selling pressure in the next sessions
Furthermore, greater divergence of 12-day EMA was seen south of 26-day EMA, suggesting weakness ahead
A sustained trade below 11,270 level can now drag the Nifty50 index to 11,000 and 10,880 zones
On the Upside Medium Term, hurdle is shifting lower towards 11,430 zone
India VIX tanks 3.50% on Tuesday’ s session from 22.19 to 21.41 despite weakness in market indices – points to rangebound move in the coming sessions with a capped upside
Nifty Midcap 100 and Nifty Smallcap 250 loses 1.54% and 1.84% respectively
Sectorally, Nifty Energy was the biggest loser, was down 1.96% followed by Nifty Realty that dropped 1.85%
Nifty IT and Nifty Pharma gained points on the index, nearly 0.70% each
Bank Nifty continued its weakness for the fourth consecutive session and drifted towards the 21,000 level – forming a bearish candle on the daily scale, a hold below 21,000 can drag the index to 20,500 and 20,300 zones with upside hurdles at 21,500 and 21,750
India 10 Year bond yield rose 1.20% to 6.085
The overnight call money rate weighted average stood at 3.43% according to RBI data. It moved in a range of 1.80 – 4.00%
GMM Pfaudler tanks 10% as it launches OFS at 33% discount
US MARKETS
The Dow Jones Industrial Average climbed 140 points or 0.52% on Tuesday to close at 27,288.2
The S&P 500 gained 35 points or 1.05% to close at 3,315.6, breaking its losing streak
Nasdaq Composite opened gap-down at 10,871 and gained 184 points to close at Friday’s open of 10963.60
Russel 1000 Index Growth added 4 points or 0.22% to close at 1,832.08
Today in derivatives market, Dow futures rose 98 points, S&P 500 and Nasdaq 100 futures dipped 0.15% and 0.35%, respectively
Better-than-expected earnings from Nike and KB Home lifted sentiment
Nike saw digital sales rise 82%, driving the stock up 6% after hours
Tesla also rose in extended trading after Elon Musk said deliveries are expected to increase 30% to 40% in 2020
ASIAN MARKETS
Stocks in Asia-Pacific opened mixed but lost points in their Wednesday morning trade
Investors react to recent comments from Federal Reserve Chairman Jerome Powell
In Japan, the Nikkei 225 slipped 0.59% in early morning trade while the Topix 500 index shed 0.57%
South Korea’s Kospi is down 0.83% in morning trade, having formed Bearish Belt Hold yesterday on day’s scale
Hong Kong’s Hang Seng Index fell in morning trade, down 0.14% to trade at 23,861 continuing its 6th straight dive from 24,821 since Sep 16
In China, Shanghai Composite lost 0.18% to trade at 3,268.5 continuing its 3rd losing streak
Meanwhile, Australia’s S&P/ASX 200 jumped 1.80% in morning trade at 5,889 – forming a Bullish Belt Hold pattern on a day’s scale
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, traded 0.24% higher
EU MARKETS
The pan-European Stoxx 600 provisionally ended 0.62% higher by the closing bell on Tuesday
Stoxx 50 saw Gravestone Doji pattern on a downtrend daily scale, suggesting continuation of downside trend or sideways movement. The index muted closed at 3164.1
Oil and gas stocks jumped 1.7% to lead gains
The insurance sector dropped 1.2%
Germany’s DAX opened gap-up but dropped points settling at 12,594 by the closing bell
OIL & NATURAL GAS MARKETS
Oil prices continue to drop on prospect of higher supply from Libya and restart of production in the Gulf of Mexico disrupted by Hurricane Sally earlier this month
As per Reuters reports, workers at Libya’s major Sharara field restarted operations after the National Oil Corporation announced a partial lifting of force majeure
Today, Brent crude is trading down 1.10% at 41.30 a barrel, fall from Friday’s high of $43.81
Today, U.S. WTI crude is trading down 0.92% at 39.38 a barrel, fall from Friday’s high of $41.47
Today, Natural Gas CFDs have dropped 0.61% to trade at 2.593, having formed a Bearish Engulfing pattern on day’s scale for Sep 22
India’s Crude oil future closed muted with a Long Legged Doji on Tuesday at 2920, after falling 4.54% in Monday’s trade
India’s Natural gas futures dropped 0.30% on Tuesday to settle at 134.4 after losing 10.43% in Monday’s trade
GOLD & SILVER MARKETS
Gold fell for a second straight session on Tuesday as the dollar climbed to a two-month peak
US gold futures traded mute at 1,900.84 on Wednesday’s early morning trade after falling 0.4% on Tuesday’s trade
Spot gold fell 0.4% to $1,904.34 per ounce, reversing earlier gains
Silver plunged 1.22% to $24.07, its lowest level in over a month
On MCX, gold futures tumbled 0.27% or 136 to 50,335 per 10 gram
On MCX, silver futures dropped 0.52% or 316 to 61,000 per kg
INDIA – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was down 0.09% or 1.05 points at 1,139.75 ; led by gains in cotton seed
US DOLLAR
US dollar strengthened, with currency index rising 0.46% on Tuesday against its G-10 peers, from 93.548 to 93.974, climbed two month peak
Euro/USD levels falling 0.21% in early morning trade on Wednesday, trading at 1.1682, with Euro weakening
The Japanese yen weakened by 0.16% on Wednesday trade versus the greenback at 105.09 per dollar
Sterling was last trading at $1.2723, down 0.07% on the day, with sterling weakening
USD/INR opened at 73.57 and closed 06 cents lower on Tuesday, settling below the 75-per USD mark at 73.51
CNH, the offshore yuan, stands at 6.8118 to the USD, up 0.16% with dollar strengthening to CNH
US TREASURY
Yields on the benchmark 10-year Treasury note is trading at 0.672%, down from Tuesday’s high at 0.689%
The 30-year bond yield is trading at 1.419%, down from Tuesday’s high at 1.438%
FUND FLOWS on 22.09.2020 (source NSE)
FII Net Sell Rs 2,072 Cr in Cash Market
DII Net Buy Rs 878 Cr in Cash Market
