Index Trend & Conditions

• Major Resistance created at 11,970—12,100 area for Nifty50

• For Tuesday, Oct 27, Support at 11,650—11,680 area with Resistance at 11,800  11,930 and 11,970 for Nifty50

• Trends on SGX Nifty indicate a positive outlook for Nifty50 in India with a 43 points gain. The Nifty futures were trading at 11,818 on the Singaporean Exchange at 08:00 IST

• Dow Jones, S&P500 and Nasdaq futures trading flat on the day, a Bearish Belt Hold pattern on Nifty50 daily chart pattern with deteriorating market breadth and a weakening dollar on the day chart indicate a muted start with a positive bias for Indian benchmark indices with a critical area for pullback at 11,970—12,100 on Nifty50

• The current mood in the market is bracing and non-committal

India Markets

Nifty50 OPENHIGHLOWCLOSE
Monday11,93711,94211,71111,767

Nifty50 dropped 163 points or -1.36% on Monday to close at 11,767

The index ended up forming a Bearish Belt Hold kind of candle, which indicated that the bears are having complete dominance on the market for most part of the session

On the weekly chart, Nifty is still moving in a closed range between 12,000 and 11,777

Metal and Auto stocks faltered the most while Telecom and FMCG stocks dropped marginally

On the up side, crucial level or resistance is seen at 11,970  12,020 and 12,100for Monday

While, on the downside, support is seen at 11,800 for Monday

The BSE Sensex index closed down 540 points or -1.33% at 40,145 on Monday

Bank Nifty failed to hold the 24,500 level and drifted towards the 23,850 mark during the day, losing 400 points to close at 24,075

Bank Nifty has witnessed a strong resistance level at 24,581 last week

India VIX moved up 4.6% from 21.82 to 22.83 levels

Broader market indices closed lower on the day. The Midcap index closed with a fall of 300 points or -1.71% while the smallcap index closed with a loss of 55 points or -1.08%

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 1.50 – 3.50% as on Oct 23

Central bank’s October policy meeting minutes indicated reviving growth is a bigger priority for the newly appointed monetary policy committee than achieving an inflation target

On stocks front, Reliance Industries saw 4% decline after Amazon won an interim order to pause Future Group’s $3.38 billion asset sale to Reliance

Metal stocks were under pressure after heavyweight JSW Steel missed quarterly profit estimates

In FMCG, Nestle India rose more than 2% after it reported higher quarterly revenue

Bajaj Auto had the largest drop, falling -6.1%

Americas

Wall Street sold off on Monday and booked its worst day since early September, as fiscal stimulus uncertainty continued amid rising cases in the US and Europe

House Speaker Nancy Pelosi said the chamber could pass a plan this week, though a deal with the White House remains elusive and the Republican-led Senate might not act before the election

Speculation about a package has helped Treasury yields rise in recent weeks, dulling Gold’s allure

The Dow Jones plunged 650 points or -2.3% to 27,686

The S&P 500 plummeted 64 points or -1.9% to 3401

The Nasdaq sank 189 points or -1.6% to 11,359

Russel 1000 Index lost -1.85%, touching 1,900

Canada’s S&P/TSX Composite Index lost 224 points or -1.38% to 16,079

Today in derivatives market, Dow Jones, S&P500 and Nasdaq 100 futures are trading flat

White House Chief of Staff Mark Meadows said the US isn’t going to “control” the pandemic

WHO’s director general said some countries in the northern hemisphere are facing a “dangerous moment” as cases spike

Asia-Pacific Markets

Asian stocks followed their US counterparts, lower on early Tuesday trade, on concern that rising coronavirus cases will hurt the global economy and a drag period for the stimulus talks in Washington

The Nikkei 225 dropped 61 points or -0.26% to 23,433 in early Tuesday trade

Topix 500 dropped 5 points or -0.44% to 1,245 in early Tuesday trade

South Korea’s Kospi dropped 0.28 points or -0.01% in morning trade at 2,343

In Hong Kong, the Hang Seng Index dropped 104 points or -0.42% to 24,815 in early Tuesday trade

China’s CSI 300 Index lost 6 points or -0.12% to 4,685 in early Tuesday trade

Hang Seng China Enterprises Index lost 93 points or -0.93% at 10,031 in early Tuesday trade

Shanghai Composite Index lost 9 points or 0.29% at 3,241 in early Tuesday trade

Australia’s S&P/ASX 200 dropped 114 points or -1.86% to 6,041 in early trade

Singapore’s Straits Times Index dropped 11 points or -0.44% to 2,512

Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, dropped -0.31%

China will publish September industrial profits on Tuesday

China’s planners to emphasize their vision for technological leadership and supply-side reforms in their 5-Year plan

Coca-Cola Amatil surged 16.28% to see its best day in over a decade after Coca-Cola European Partners offered to buy the Australian bottler for A$6.6 billion

EU Markets

European stocks sank on Monday, as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases

The pan-European Stoxx 600 index dropped -1.22% at 356 on Monday

Stoxx 50 fell -2.39% to close at 3,122 on Monday

Germany’s DAX30 dropped 400 points or -3.12% at 12,253 on Monday

London’s FTSE 100 added 36 points or -0.61% to close at 5,823 on Monday

France’s CAC40 dropped 70 points, or -1.42% at 4,829

Denmark’s OMX Copenhagen 20 Index dropped 15 points or -1.06% at 1,363

Luxembourg’s LuxX Index dropped -0.27% at 1,087

Sweden’s OMX Stockholm 30 Index dropped -1.84% at 1,786

Italy’s FTSE MIB Index dropped 242 points or -1.26% at 19,043

Shares in German heavyweight SAP slumped 20% after it cut its 2020 outlook

The wider tech index slumped -5.8%

Milan’s blue-chip index dropped -1.5%, even as ratings agency Standard and Poor’s upgraded Italy’s sovereign outlook to stable from negative

Surveys of euro zone purchasing managers last week showed economic activity slipped back into decline in October, heightening expectations for a double-dip recession as a second wave of virus sweeps across the continent

Healthcare stocks remained supportive, with AstraZeneca gaining 1.1% after it resumed the US trial of its experimental covid vaccine

Oil majors Total and Royal Dutch Shell fell over -1% as crude prices slumped almost -3%

Oil & Natural Gas Markets

WTI crude futures were down more than 3% to trade around $38.6 a barrel, its lowest level in three weeks

Brent crude futures dropped more than 2% to trade around $40.7 a barrel on Monday

Natural gas hovered around $3.0/MMBtu on Monday, close to the highest since January 2019 despite the latest weather forecasts show hints of warmer temperature

WTI Crude is trading at $38.72 per barrel in early Tuesday trade

Brent Crude is trading at $40.66 per barrel in early Tuesday trade

Natural Gas futures added 2.08% in early Tuesday trade at $3.024 per mmbtu

On MCX-India, Crude oil futures dropped to 2,846 in early Tuesday trade

On MCX-India, Natural gas futures rose to 221 in early Tuesday trade

On the supply side, Libya’s National Oil lifted force majeure on exports from El Feel. The move will bolster the Tripoli-based National Oil Corp.’s attempt to boost Libyan production to 1 million barrels each day within a month, a quicker-than-expected ramp-up

Gold & Silver Markets (+copper futures)

Gold hovered around $1,900 an ounce on Monday, pressured by a firmer dollar and lack of progress towards a US stimulus package

Silver traded lower around $24.4 an ounce on Monday, not far from a one-week low of $24.1

Copper fell for a third session to below $3.1 per pound on Monday

US Gold futures (Comex) strengthened to $1,912 an ounce in early Tuesday trade, as economic damage expected from renewed coronavirus outbreak worldwide boosted bullion’s safe-haven appeal

US Spot Gold strengthened to $1,909 an ounce in early Tuesday trade

Silver futures (Comex) strengthened to $24.59 an ounce in early Tuesday trade

Copper futures (Comex) weakened to $308.45 per pound in early Tuesday trade

In India, Spot Gold strengthened to INR 50,426 per 10 grams in early Tuesday trade

India – NCDEX Agridex

Agricultural futures index tracking the performance of the 10 liquid commodities, was up 1.02% trading at 1,202 ; with major gains in Castor Seed, Mustard Seed and Soy Bean futures on Monday

Currency Markets

The dollar index traded higher around 93 on Monday, the highest in near a week

Cases continue to mount in Europe, with many countries announcing further restrictions, including a nationwide curfew for 6 months in Spain is pressuring the dollar up

Investors moved into the safe haven US Dollar as White House chief of staff Mark Meadows suggested that the country could not get control of the pandemic

INR weakened -0.34% with USD-INR at 73.8500

JPY weakened -0.20% with USD-JPY at 104.9200

CNY weakened -0.36% with USD-CNY at 6.7107

EUR weakened -0.40% with EUR-USD at 1.1812

GBP weakened -0.25% with GBP-USD at 1.3006

SEK weakened-0.04% with USD-SEK at 8.7511

Bond Markets

Americas : 10-Year Govt Bond Yields

United States  :  Down 4 basis points at 0.80%
Canada  :  Down 1 basis point at 0.62%

Europe, Middle East & Africa : 10-Year Govt Bond Yields

Germany  :  Up 1 basis point at -0.57%
United Kingdom  :  Flat at 0.28%
France  :  Up 1 basis point at -0.29%
Netherlands  : Up 1 basis point at -0.46%

Asia Pacific : 10-Year Govt Bond Yields

India  :  Flat at 5.84%
Japan  :  Down 1 basis point at 0.02%
Australia : Down 5 basis points at 0.80%
Hong Kong : Down 9 basis points at 0.35%
Singapore : Down 2 basis points at 0.82%      
South Korea : Down 1 basis point at 1.48%

Fund Flows on NSE, BSE and MSEI – Oct 26 2020 (source NSE)

FII Net Sell Rs (119.42 Crore) in Cash Market

DII Net Sell Rs (979.16 Crore) in Cash Market

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