PREMISE
Support = 10,800 – 10,820 and 10,607 with Resistance = 10,870 and 11,130 for Nifty50 on Friday
Trends on SGX Nifty indicate a positive start for Nifty50 in India with a 73 points gain. The Nifty futures were trading at 10,917 on the Singaporean Exchange at 08:00 IST
Fresh lockdown fears and gloomy commentary by the US Fed policymakers gave a massive jolt to the confidence of Indian equity investors who dumped shares on Thursday sending benchmark indices spiralling down for the sixth straight day – forming a bearish marubozu candle
Nifty50 has tested the key 10,800 level
RBI will release bank loan and deposit growth data for the fortnight ended September 11 that will be tracked by investors of banking stocks
RBI will also release forex reserves data on Friday that will reveal the dollar buying pattern of the central bank
Foreign institutional investors (FIIs) have sold Rs 8,410.7 Cr of Indian shares so far this week, and they may pull out more money in the days to come
In the US, House Democrats are likely to release a smaller coronavirus relief package sometime next week, to the tune of $2.4 trillion, acting as an updated version of the $3.4 trillion HEROES Act passed by the House earlier this year
INDIA MARKETS
Nifty50 with other domestic indices nosedived for the sixth close in the red on Thursday, losing 326 points or 2.93% and settling at 10,805.55
BSE dropped 1,115 points or 2.96% to close at 36,553.60 level
Nifty formed a Bearish Marubozu candle on Thursday on the daily chart – together with lower highs and lows for four consecutive sessions, suggesting a downside breakout in the market or continuation of strong bearish trend
Nifty will be using 10,607 as a critical support now and is expected to witness volatile moves in a small range before a positive setup matures
On the higher side, resistance is seen at 10,870 – 11,130 area for Friday
While, on the downside, support is seen at 10,800 – 10,820 and 10,607 area for Friday
On the expiry day, Thursday, the bulls couldn’t manage to defend the Wednesday’s intraday low of 11,024, as the index tested the key level of 10,800 as a short term target
India VIX sharply gains 12.01% on Thursday, from 20.99 to 23.51 level. Higher volatility suggests bear grip on the market with the upside capped
Nifty Midcap 100 and Nifty Smallcap 250 loses 2.51% and 2.35% respectively
Nifty Midcap slips below 50-DMA for first time since May 22
IT stocks plummeted on Thursday and logged sharp declines – with TCS and INFY leading the pack
Auto and Banking stocks were in freefall. HDFC Bank and ICICI Bank dropping 1.68% and 4.52% respectively. In Auto pack, Ashok Leyland and Tata Motors dropped 8.56% and 6.51% respectively
Sectorally, Nifty Metal was the biggest loser, was down 4.24% followed by Nifty IT that dropped 4.20%
India 10 Year bond yield fell 1.14% from 5.994 to 5.972
The overnight call money rate weighted average stood at 6.35% according to RBI data. It moved in a range of 5.00 – 6.50%
US MARKETS
US stocks are rising on tech boost as economic recovery cools
Surprise rise in weekly jobless claims signaling a slowdown in economic growth
Nasdaq Composite led gains on Thursday opening gap-down at 10,553 but rising 40 points or 0.37% by the closing bell at 10,672
The Dow Jones Industrial Average rose 52.3 points or 0.20% to close at 26,815.5
The S&P 500 gained 10 points or 0.30% by the end of trading day to close at 3,246.6
Russel 1000 Index Growth jumped 9 points or 0.49% to close at 1,810.50
Today in derivatives market, all 3 futures trading in green with Dow futures rising 90 points, S&P 500 futures 14 points and Nasdaq 100 futures 47 points
ASIAN MARKETS
Stocks in Asia-Pacific traded mixed on Friday morning
In Japan, the Nikkei 225 rose 0.48% in early morning trade while the Topix 500 index shed 0.52%
South Korea’s Kospi advanced 0.67% in morning trade
Hong Kong’s Hang Seng Index advanced in morning trade, up 0.30% to trade at 23,383
In China, Shanghai Composite lost 0.07% to trade at 3,221.07 continuing its 5th losing streak
Meanwhile, Australia’s S&P/ASX 200 gained 1.31% in morning trade at 5,953.0
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, traded 0.33% higher
EU MARKETS
Global sell off drives European shares down to 3-month lows
Sentiments are low because of absence of fresh stimulus package for US economy and a second wave of coronavirus
The pan-European Stoxx 600 provisionally ended 1.0% lower by the closing bell on Wednesday
Stoxx 50 saw big bearish moves on Monday and Tuesday, suggesting continuation of downside trend or sideways movement. The index settled 0.64% down at 3159.60
Germany’s DAX saw a Big Bearish Belt Hold on Monday. The index opened gap-down at 12,519.5 but quickly gained 0.30% settling at 12,606 by the closing bell
London’s FTSE 100 fell 1.30% to settle at 5822.8
France’s CAC 40 added 0.4% after opening gap-down, closed at 4762.6 level
Most sectors and all major bourses trading in negative territory
Retail shares led the selling action, declining 2.2%
Bourses in Frankfurt, London and Paris were down 0.3% and 0.6%
OIL & NATURAL GAS MARKETS
Today, Brent crude is trading up 0.79% at $42.06 a barrel
Today, U.S. WTI crude is trading up 0.77% at $40.45 a barrel
Today, Natural Gas is trading 0.75% up after gaining 3.6% on Thursday
On MCX, India’s Crude oil future closed 0.88% up on Thursday at 2973
India’s Natural gas futures formed a Bullish candle with a long upper shadow on Thursday’s trade, closing 7.6% up at 165.9 from Wednesday’s close at 154.2
GOLD & SILVER MARKETS
US gold futures is trading flat at $1,868.06 per ounce on Friday early morning
Spot gold was down 0.1% at $1,862.52 per ounce
Silver is trading at $23.06, down 0.43% after gaining momentum on Thursday’s trade
On MCX, Oct gold futures gained 0.64% or 319 to 49,827 per 10 gram
On MCX, Dec silver futures dropped 1.82% or 1,062 to 59,550 per kg
INDIA – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 1.00% or 11.35 points at 1,133.90 ; led by gains in Mustard seed
US DOLLAR
US dollar tumbled on Friday early morning, with currency index losing 0.02% against its G-10 peers, at 94.334, 2-month peak
Euro/USD levels falling 0.02% on Friday morning at 1.1666, with Euro weakening
The Japanese yen weakened by 0.08% on Friday versus the greenback at 105.46 per dollar
Sterling was last trading at $1.2756, down 0.09% on the day, with sterling strengthening
USD/INR opened at 73.57 and climbed 33 cents higher on Thursday, settling below the 75-per USD mark at 73.90
CNH, the offshore yuan, stands at 6.8283 to the USD, down 0.19% with dollar weakening to CNH
US TREASURY
Yields on the benchmark 10-year Treasury note is trading at 0.676%, down from Monday’s high of 0.698%
The 30-year bond yield is trading flat at 1.417%, down from Monday’s high at 1.460%
FUND FLOWS on 24.09.2020 (source NSE)
FII Net Sell Rs 1,885 Cr in Cash Market (+ Sold 2,072 Cr on Tuesday + Sold 3,912 Cr on Wednesday)
DII Net Buy Rs 188 Cr in Cash Market
