Index Trend & Conditions | 08:00 IST
• Major Resistance created at 11,970—12,100 area for Nifty50
• For Friday, Oct 30, Support at 11,604 with Resistance at 11,760 and 11,894 for Nifty50
• Trends on SGX Nifty indicate a negative outlook for Nifty50 in India with a 35 points loss. The Nifty futures were trading at 11,629 on the Singaporean Exchange at 08:00 IST
• Dow Jones, S&P500 and Nasdaq futures trading red on the day, US market rebounding after sell-off, a negative outlook of Asia-Pacific early morning trade, and a strong outlook of the dollar indicate a gap-down start with a negative and range-bound (between 11,760 and 11,535) bias for Indian benchmark indices
• The current mood in the market is bracing and non-committal
India Markets
| NIFTY 50 | OPEN | HIGH | LOW | CLOSE |
|---|---|---|---|---|
| Thursday | 11,633 | 11,744 | 11,606 | 11,670 |
Nifty50 dropped 59 points or -0.50% on Thursday to close at 11,670 ; opening gap-down on the day’s session
The index formed a bullish candle as it closed higher than its opening level, but occurrence of a long upper shadow indicated that the bears are putting sustained pressure at higher levels amid weakness in global markets
Nifty opened negative on Thursday, and remained highly volatile in range of 140 points between 11,600 and 11,750 zones
Nifty50 has taken support at 11,600 level, and can remain range-bound between 11,600 and 12,000
Both Auto and FMCG stocks were the worst performers on the day, while Commodities and IT stocks were at the vanguard of the rally
On the up side, crucial level or resistance is seen at 11,760 and 11,894 for Friday
While, on the downside, support is seen at 11,604 for Friday
The BSE Sensex index tumbled 170 points or -0.43% at 39,749 on Thursday
Bank Nifty dropped 140 points or -0.58% during the day, to close at 24,092
Bank Nifty’s strong resistance level at 24,581 still remains valid
India VIX moved up 3.19 per cent from 23.28 to 24.02 level
Broader market indices closed lower on the day. The Midcap index dropped 73 points or -0.43% while the smallcap index dropped 42 points or -0.83%
The overnight call money rate weighted average stood at 3.15% according to RBI data. It moved in a range of 1.80 – 3.55% as on Oct 27
Among stocks, HDFC Bank, HDFC, and L&T among the worst performers, while Reliance Industries and Asian Paints provided some support
America Markets
US stocks traded in the green on Thursday, led by tech shares, as investors try to shrug off coronavirus concerns and focus on earnings and upbeat economic data
Recent data from the BEA showed the US economy expanded at a record annual rate of 33.1% in Q3, faster than market expectations of 31%
Initial jobless claims fell to 751K, better than forecasts of 775K
The Dow Jones gained 140 points or 0.5% to 26,659
The S&P 500 climbed 39 points or 1.2% to 3,311
The Nasdaq jumped 181 points or 1.6% to 11,186
Canada’s S&P/TSX Composite Index added 84 points or 0.54% to 15,670
Today in derivatives market, Dow Jones, S&P500 and Nasdaq futures are up around 1% at 08:30 IST
Exxon Mobil Corp. plans to cut 1,900 jobs in Houston and other U.S. locations as the oil titan struggles to conserve cash and preserve dividends
Exxon’s Big Oil rivals are also cutting thousands of jobs in response to the pandemic-induced demand slump. BP Plc plans to slash 10,000 jobs, Royal Dutch Shell Plc will cut as many as 9,000 roles and Chevron Corp. has announced around 6,000 reductions
Asia-Pacific Markets
Stocks slumped in Asia, with losses for the main indexes in Japan, Australia and Hong Kong
The Nikkei 225 dropped 178 points or -0.76% to 23,153 in early Friday trade
Topix 500 dropped 15 points or -1.23% to 1,229 in early Friday trade
South Korea’s Kospi dropped 22 points or -0.94% in morning trade at 2,304
In Hong Kong, the Hang Seng Index dropped 94 points or -0.38% to 24,492 in early Friday trade
China’s CSI 300 Index dropped 13 points or -0.27% at 4,760 in early Friday trade
Hang Seng China Enterprises Index lost 53 points or -0.53% at 9,902 in early Friday trade
Shanghai Composite Index lost 4 points or -0.12% at 3,268 in early Friday trade
Australia’s S&P/ASX 200 dropped 21 points or -0.35% to 5,970 in early trade
Singapore’s Straits Times Index dropped 21 points or -0.86% to 2,429
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, is down -0.31%
In China, Carmaker Jiangling Motors also soared by 10% for the second straight day after data from the China Passenger Car Association revealed that China’s average daily car sales grew 17% in October
EU Markets
European equities rebounded slightly in a volatile session on Thursday, helped by hopes of more monetary stimulus in December
The pan-European Stoxx 600 index added 0.21% at 340 on Thursday
Stoxx 50 fell -0.21% to close at 2,957 on Thursday
Germany’s DAX30 added 20 points or 0.17% at 11,579 on Thursday
London’s FTSE 100 added 3 points or 0.05% to close at 5,584 on Thursday
France’s CAC40 added 1 point, or 0.03% at 4,572
Denmark’s OMX Copenhagen 20 Index added 23 points or 1.73% at 1,340
Luxembourg’s LuxX Index dropped -0.07% at 1,036
Sweden’s OMX Stockholm 30 Index dropped -0.10% at 1,721
Italy’s FTSE MIB Index dropped 46 points or -0.26% at 17,852
In France, a “special plan” will be conceived to help the self-employed, shopkeepers, as well as VSEs and SMEs that are impacted financially by the second lockdown and employees who are unable to work will benefit from a furlough scheme and receive cash for expenses and rent in the coming weeks
On the economic data front, recent figures showed consumer morale in Italy unexpectedly deteriorated while business confidence topped estimates but remained well below pre-pandemic levels
Oil & Natural Gas Markets
Crude oil futures dropped as much as 6% to trade around $36 a barrel on Thursday
Brent crude futures erased early gains dropping over 5% to around $37.1 a barrel on Thursday
Natural gas futures were down -0.33% to trade around $3.285/MMBtu on Thursday
WTI Crude is trading lower at $36.48 per barrel in early Friday trade
Brent Crude is trading lower at $37.98 per barrel in early Friday trade
Natural Gas futures higher at $3.309 per mmbtu in early Friday trade
On MCX-India, Crude oil futures dropped -2.67% to 2,698 on Thursday session
On MCX-India, Natural gas futures added 1.11% to 247 on Thursday session
The demand outlook is still bleak with the European Union’s two biggest economies to impose month-long movement restrictions to curb the spread of the virus
At the same time, U.S. crude inventories rose the most since July last week, while Libyan output is also gaining rapidly
“The market seems to be losing confidence in longer-term demand and is intent on creating an increased disincentive for investment in future capacity,” Standard Chartered analysts Paul Horsnell and Emily Ashford wrote in a report.
Gold & Silver Markets (+copper futures)
Gold was little changed at a near 1-month low of $1,872 an ounce on Thursday, after falling 1.6% in the previous session as a stronger dollar offset
Silver traded near 1% lower at $23.2 an ounce on Thursday
Copper remained little changed at around $3.08 per pound
US Gold futures (Comex) strengthened to $1,876.40 an ounce in early Friday trade
US Spot Gold strengthened to $1,875.10 an ounce in early Friday trade
Silver futures (Comex) strengthened to $23.56 an ounce in early Friday trade
Copper futures (Comex) strengthened to $307.70 per pound in early Friday trade
In India, Spot Gold strengthened to INR 49,770 per 10 grams in early Friday trade
“We think there will be ongoing downward pressure on gold prices in the near term as the dollar finds support from global growth concerns,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia. “There is a high risk of a double-dip recession in the euro zone because governments are reinstating broad-based lockdown measures.”
India – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was up 0.55% trading at 1,202 ; with major demand in Mustard Seed and Cotton Seed Oilcake futures on Thursday
Currency Markets
The dollar index strengthened further for the second straight session to around 94 on Thursday, the highest on a closing basis in near a month
Recent GDP data showed the US economy grew at a record 33.1% in Q3 (annualized)
USD strengthened on Friday, with currency index dropping -0.17% against its G-10 peers, at 92.884
INR weakened -0.32% with USD-INR at 74.1100
JPY strengthened -0.32% with USD-JPY at 104.6500
CNY strengthened 0.21% with USD-CNY at 6.7149
EUR strengthened -0.72% with EUR-USD at 1.1661
GBP strengthened -0.51% with GBP-USD at 1.2917
SEK strengthened -0.86% with USD-SEK at 8.9245
| 3-Month LIBOR Rate | As on 29 Oct 2020 |
| US DOLLAR | 0.21 per cent |
| Euro | – 0.53 per cent |
| British Pound | 0.05 per cent |
| Swiss Franc | – 0.78 per cent |
| Japanese Yen | – 0.10 per cent |
Bond Markets
Americas : 10-Year Govt Bond Yields
United States : Up 4 basis points at 0.81%
Canada : Up 3 basis points at 0.62%
Europe, Middle East & Africa : 10-Year Govt Bond Yields
Germany : Down 1 basis point at -0.64%
United Kingdom : Up 1 basis point at 0.22%
France : Down 3 basis points at -0.36%
Italy : Down 8 basis points at 0.69%
Spain : Down 5 basis points at 0.13%
Netherlands : Down 1 basis point at -0.53%
Asia Pacific : 10-Year Govt Bond Yields
India : Up 3 basis points at 5.88%
Japan : Up 1 basis point at 0.02%
Australia : Up 3 basis points at 0.81%
Hong Kong : Up 2 basis points at 0.34%
Singapore : Flat at 0.81%
South Korea : Up 1 basis point at 1.50%
Fund Flows on NSE, BSE and MSEI – Oct 29 2020 (source NSE)
FII Net Sell Rs (420.95) Crore in Cash Market
DII Net Sell Rs (253.41) Crore in Cash Market
