PREMISE
Major Resistance created at 11,650 and 11,300 for Nifty50
For Wednesday, Sep 30, Support = 10,805 and 10,870 with Resistance = 11,300 and 11,244 for Nifty50
Trends on SGX Nifty indicate a positive start for Nifty50 in India with a 41 points gain. The Nifty futures were trading at 11,285 on the Singaporean Exchange at 08:00 IST
US futures trading in green also indicate a positive open for India
S&P500 index was led by losses in energy and financial companies, after data showed New York City’s rate of positive tests rose above 3% for the first time in months and as stimulus talks ended without an agreement
House Democrats released their $2.2 trillion proposal on Sep 28 night, a move which has so far been met with silence from the Trump administration
In US, the number of people who have died from Covid-19 has passed 1 million, according to data from Johns Hopkins University, with hospital admissions plateauing at about 30,000 recently and the death rate averaging around 750 a day
In Europe, Germany could face more than 19,000 new cases a day by Christmas, Chancellor Angela Merkel warned, while France marked the first decline in new cases since August. Russia is also seeing a resurgence of cases, and Moscow has started to reopen temporary hospital wards. In Italy, though, case numbers dropped
China purchasing manager indexes are due Wednesday, and expected to show September manufacturing improved slightly while non-manufacturing moderated from August’s level
The EIA crude oil inventory report comes out Wednesday
The September US employment report on Friday will be the last before the November election
INDIA MARKETS
| Nifty50 on Tuesday | Open 11,288 | High 11,305 | Low 11,181 | Close 11,222 |
Nifty50 on Tuesday took a breather after rallying for 2-trading sessions, closing 66 points below day opening at 11,222 after making a high of 11,305
BSE shed points after opening gap-up on Tuesday to close at 37,973 or 0.02% down
A sustained trade above 11,250 level will extend the gains to 11,300, which is the 50-day EMA and 61.8% Fibonacci retracement level. A failure to sustain beyond 11,250 level may trigger a profit booking decline to 10,820 level
On the up side, crucial level or resistance is seen at 11,300 (61.8% retracement mark) and a breach of this level may bring further upside to the index
While, on the downside, support is seen at 10,805 and 10,870 levels for Wednesday
Bank Nifty opened positive but nosedived losing 250 points down to close above its crucial mark of 21,000 at 21,411. It continues to form higher lows suggesting an upward movement but a hold below 21,000 can put a lot of pressure for the downside zone
India VIX gained 1.03% on Tuesday, from 19.57 to 19.77 level, lower volatility hints at possible bounceback
Nifty Midcap 100 and Nifty Smallcap 250 shed nearly 0.2% each on closing bell
Telecom stocks were the worst performers with BSE Telecom index declining over 2.13%
India 10 Year bond yield stood at 6.156, rise of 1.53% from 6.062, on Tuesday
The overnight call money rate weighted average stood at 3.42% according to RBI data. It moved in a range of 1.80 – 4.00% as on Sep 28
The Statutory Liquidity Ratio (SLR) stands at 18.0% according to RBI data. It is the percentage of total deposits banks have to invest in government bonds and other approved securities
Cash Reserve Ratio (CRR) stands at 3.0% as per RBI data. Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity
Grey market premium slips for UTI Mutual Fund AMC IPO whereas Mazagon Docks is seeing a premium of Rs 120-130 per share
US MARKETS
US stocks treads water ahead of first presidential debate – with benchmark indices negating all gains made from Monday’s trade
Nasdaq Composite dropped 32 points or 0.29% by the closing bell at 1,1085
The Dow Jones Industrial Average fell 131 points or 0.5% after opening bell to close at 27,452
The S&P500 opened lower and lost 16 points or 0.48% by to close at 3,335
Russel 1000 Index Growth fell 9 points or 0.47% to close at 1,857
Today in derivatives market, all 3 futures trading in green with Dow futures up 116 points, S&P500 futures up 16 points and Nasdaq100 futures up 58 points
ASIAN MARKETS
Stocks in Asia-Pacific traded in red waters on Wednesday morning amidst US Presidential debate outcome
In Japan, the Nikkei 225 opened gap-down but gained points in early morning trade to trade at 23,510 while the Topix 500 index also opened gap-down and is trading at 1,273
South Korea’s Kospi advanced 20 points or 0.86% in morning trade at 2,327
Hong Kong’s Hang Seng Index gained points in morning trade, up 1.74% to trade at 23,680
In China, Shanghai Composite added 0.49% to trade at 3,239 continuing its up trend
Meanwhile, Australia’s S&P/ASX 200 dropped 0.80% in morning trade at 5,904 continuing its losing streak
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan, traded marginally higher
Nippon Telegraph & Telephone Corp. announced plans to turn its wireless carrier unit NTT Docomo Inc. into a wholly owned subsidiary in a $40 billion buyout. NTT Docomo shares surged by their limit at the close in Tokyo
EU MARKETS
European shares slip ahead of Trump-Biden debate
The pan-European Stoxx 600 provisionally was down 0.5% by the closing bell on Tuesday, after recording its biggest single day gain in 3-months
Stoxx 50 was down 0.3% closing at 3,214. The index had seen a big rally on Monday
Stoxx 50 saw big a bullish move on Monday, with a formation of a Bullish Belt Hold on a day scale suggesting more speculation on the upside movement. The index settled 2.75% up at 3223.2
Germany’s DAX closed mute, down 45 points or 0.35% or at 12,825
London’s FTSE 100 pulled down 0.51% to settle at 5897
France’s CAC40 dropped 0.23% to trade at 4832 by the closing bell
Banks led broad-based declines
OIL & NATURAL GAS MARKETS
Oil prices sunk on Tuesday, falling below $39 on renewed concern for a lack of demand
Brent crude traded 4.26% down on Tuesday, closing at $40.72 a barrel. Today it is trading lower at $40.66
US WTI crude traded 3.83% down on Tuesday, settling at $38.96 a barrel. Today it is trading at $38.97
Natural Gas futures was down 5.75% on Monday, closing at $2.650 per MMBtu. Today it is trading at $2.680
On MCX, India’s Crude oil futures was down 3.75% on Monday, closing at 2877
India’s Natural gas futures dropped 8.15% on the day, to close at 188.3
GOLD & SILVER MARKETS
Gold rose on Tuesday, 2nd in a row, as dollar index correction rally continued
US gold futures settled up 0.63% at $1,898 per ounce on Tuesday. Today, it is trading at $1,894
Silver futures settled up 1.95% at $24.180 per ounce on Tuesday. Today, it is trading lower at $23.98
On MCX, 4 Dec Gold futures rose 0.80% or 402 to 50,540 per 10 gram
On MCX, 4 Dec Silver futures rose 2.19% or 1,324 to 61,720 per kg
INDIA – NCDEX Agridex
Agricultural futures index tracking the performance of the 10 liquid commodities, was down 0.07% after opening at 1143.35 to close at 1,142.50 ; led by gains in Coriander and Jeera on Tuesday, Sep 29
US DOLLAR
US dollar tumbled on Tuesday’s trading session, 2nd in a row, with currency index losing 0.23% against its G-10 peers, to settle at 93.87
Euro/USD levels rose 0.46% on Tuesday, closing at 1.1714, with Euro strengthening and forming a Bullish Belt Hold on the daily scale
The Japanese yen weakened by 0.22% on Tuesday versus the greenback at 105.68 per dollar
Sterling traded at $1.2838, up 0.05% on Tuesday, with sterling strengthening versus dollar
USD/INR opened at 73.7600 and gained 03 cents higher on Tuesday, to settle below the 75-per USD mark at 73.7930
Offshore Chinese yuan, CNH/USD, stands at 0.1461, down 0.09% with dollar strengthening to CNH
US TREASURY
Yields on the benchmark 10-year Treasury note traded red at 0.650 on Tuesday, down 1.76% on the day
The 30-year bond yield traded 0.2% up at 1.417 on Tuesday
FUND FLOWS on 29.09.2020 (source NSE)
FII Net Sell Rs 1,457 Cr in Cash Market (sold 9,976 Cr since Sep 22)
DII Net Buy Rs 576 Cr in Cash Market
