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Nov 15, 2022
Nifty to surpass 18,100 or correction on cards? 7 things to know before share market opens today

Indian benchmark indices are likely to open on a negative note, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were in the red at 17,968 level. In the previous session, Sensex closed above 61,300 and the Nifty settled above 18,000. “Markets ended higher for the third straight day but ended off the day’s high as profit booking towards the close in banking stocks trimmed the gains. Investors preferred to stay on the sidelines after the US 2-year yield jumped to 4.632% while the 10-year yield was last pegged at 3.811%,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

Key things to know before share market opens

Wall Street Overnight

Wall Street fell by the most in four weeks as further data proved that inflation is stickier than expected.The S&P 500 dropped 1.4% after a report said inflation at the wholesale level slowed by less last month than previously forecasted. The Dow Jones Industrial Average lost 431 points, or 1.3%, while the Nasdaq composite dropped 1.8%.

Technical Levels

“A small negative candle was formed on the daily chart, which indicates an emergence of minor weakness from the highs. This pattern also signals a formation of bearish counterattack type candle pattern (not a classical one). But this needs to be confirmed with sizable weakness in the subsequent sessions. The short-term uptrend status of Nifty remains intact and the market has started to face hurdles from near the highs of around 18,150-18,200 levels. Further decline from here could trigger minor weakness for the short term and a sustainable move above 18,150 levels could open more upside towards 18,250 levels,” said Najraj Shetti, Technical Research Analyst, HDFC Securities.

Levels To Watch

“Volume profile indicates Index has a strong support around 17,750-17,820 zone. Coming to the OI Data, on the call side, the highest OI observed at 18,100 followed by 18,200 strike prices while on the put side, the highest OI was at 17,800 strike price. On the other hand, Bank nifty has support at 40,800-40,900 while resistance is placed at 42,000-42,100 range. We advise traders to keep booking profits and trailing stop losses. Also option traders are advised to hedge their trades,” said Om Mehra, Equity Research Analyst, Choice Broking.

Crude Oil

Oil prices slid on Friday and were on track for weekly losses as strong U.S. economic data heightened concern that the Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow. Brent crude futures dropped 49 cents, or 0.6%, to $84.65 per barrel, while U.S. West Texas Intermediate (WTI) crude futures shed 46 cents, also a 0.6% loss, to $78.03. Both benchmarks were headed for a weekly decline of about 2%.

FII/DII Data

Foreign institutional investors (FII) bought shares worth Rs 1,570.62 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,577.27 crore on 16 February, according to the provisional data available on NSE.

F&O Ban

The National Stock Exchange has BHEL, Punjab National Bank (PNB), Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 16 February. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

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Nov 15, 2022
Gold: closed in red for the second straight week

By Jigar Trivedi

Gold weakened past $1,860 an ounce on Friday and set to decline for the second straight week, weighed down by hawkish signals from Federal Reserve officials who reiterated their commitment to bring down inflation with more rate increases. Those developments came on the heels of stronger-than-expected US jobs numbers which could fuel consumer spending that would maintain upward pressure on inflation.

MCX Gold April has a strong support near Rs. 56,000 and 55,400 per 10 gram. On flip side a strong resistance is seen near Rs. 57,500 per 10 gram. Outlook is positive however, the focus will be on the US inflation numbers hence expect a volatile session.

(Jigar Trivedi, Senior Research Analyst – Currencies & Commodities, Reliance Securities. Views expressed are author’s own.)

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Nov 15, 2022
Markets Wrap – Mon, 20 Feb ‘23: Nifty, Sensex plunge, rupee rises; Asia, US markets, Gold, Crude updates

Indian equity indices ended Monday’s choppy session in the red territory. The Nifty closed below 17,850 and Sensex settled below 60,700. The top gainers on the BSE Sensex were UltraTech Cement (up 1.58%), Tech Mahindra (up 1.45%), Power Grid (up 0.75%), Infosys (up 0.73%) and Tata Motors (up 0.63%) while Maruti (down 1.37%), HDFC (down 1.36%), Kotak Bank (down 1.28%), ICICI Bank (down 1.18%) and Axis Bank (down 1.09%) were the losers.

US Markets

Most US equity indices ended Friday’s session in the red territory with tech-heavy Nasdaq falling 69.56 pts or 0.56% to 11,787.27, S&P 500 dipping 11.32 or 0.28% to 4,079.09 while Dow Jones Industrial Average rose 129.84 pts or 0.39% to 33,826.69.

Asian Markets

Asian markets closed in green on Monday. China’s Shanghai Composite Index rose 2.06%, Japan’s Nikkei 225 was up 0.07%, South Korea’s KOSPI climbed almost 0.16% and Hong Kong’s Hang Seng advanced 0.86%.

Rupee movement

The Indian rupee gained marginally by 0.12% to 82.73 against the US dollar at 3:45 PM (IST).

Gold, Silver

Gold futures on the multi-commodity exchange for April delivery were trading at Rs 56,293.00, up 36 points or 0.06% while Silver futures for March delivery rose 106 points or 0.16% to Rs 65,737.00.

Crude oil

WTI Crude futures for March delivery were up 1% at $77.10 while Brent Crude futures for March delivery were trading 0.78% higher at $83.65 at 3:50 PM (IST).

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Nov 14, 2022
Nifty to cross 18000 resistance or bears to make a comeback? 7 things to know before share market opens

Indian benchmark indices are likely to open on a muted note, hinted SGX Nifty on Wednesday. On the Singapore Exchange, Nifty futures are trading lower at 17907 level. In the previous session, BSE Sensex soared 600 pts to 61,032, while NSE Nifty 50 jumped 159 pts to 17,930. “We are still yet to thrash key psychological levels of 18000; but the way the market closed today; it is certainly showing early signs of coming out of this long congestion phase. Hopefully, the global peers will provide the much-needed impetus to confirm the breakout in the coming session itself,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.

Key things to know before share market opens

Global market watch: Asia Pacific markets traded lower on Wednesday after the release of US inflation data that came in hotter-than-expected. Hong Kong’s Hang Seng index fell 1.23%. In mainland China, the Shanghai Composite shed 0.14%. Japan’s Nikkei 225 and South Korea’s Kospi fell 0.8%. Overnight in the US, Wall Street stocks ended mixed on Tuesday. The S&P 500 declined 0.03%, Nasdaq gained 0.57%, while Dow Jones Industrial Average declined 0.46%.

Key levels to watch: Nifty has support at 17,836 followed by 17,799 and then 17,740. If the index moves up, the key resistance levels to watch out for are 17,954, followed by 17,990 and 18,049. Nifty Bank on Tuesday rallied 366 pts to 41,648. “The index has surpassed the immediate hurdle of 41,500 which had the highest open interest build-up on the Call side. The index’s next hurdle is at 42,000 and once surpassed will witness sharp short covering towards 43,000-43,500 levels,” Kunal Shah, Senior Technical Analyst at LKP Securities said.

FII and DII data: Foreign institutional investors (FII) bought shares worth Rs 1,305.30 crore, while domestic institutional investors (DII) purchased shares worth Rs 204.79 crore on 14 February, according to the provisional data available with NSE.

Stocks under F&O ban on NSE: The National Stock Exchange has BHEL, Punjab National Bank (PNB), Ambuja Cements and Indiabulls Housing Finance stocks on its F&O ban list for 15 February. According to the NSE, the stocks mentioned above are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Crude oil prices fall: Oil prices slipped in early Asian trade on Wednesday after falling by more than $1 a barrel in the previous session as industry data pointed to a much bigger-than-expected surge in U.S. crude inventories. Brent crude futures lost 20 cents to $85.38 per barrel by 0111 GMT, while U.S. West Texas Intermediate (WTI) crude futures shed 19 cents to $78.87.

US inflation rises in January: The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose by 6.4% from January 2022, slightly higher than the estimated rate of 6.3%. Inflation in the US continued to surge in January, with the latest data showing higher-than-expected increases both year-on-year and month-on-month. On a month-on-month basis, the CPI increased by 0.5%, surpassing the projected rate of 0.4%. The Core Inflation Rate also rose by 0.4%, exceeding the expected 0.3% increase.

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Nov 13, 2022
Gold Price Today, 10 Feb: Gold slips as dollar edges up; fears of further rate hikes from US Fed dampen appeal

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading lower on Friday due to mixed global cues, while the silver rate is down 0.82%. On Multi Commodity Exchange, gold April futures were trading at Rs 57,170 per 10 grams, down Rs 232 or 0.41%. Silver March futures were trading lower by Rs 549 at Rs 67,324 per kg on MCX. Globally, the yellow metal prices remained flat, set for their second weekly decline, as the prospect of continued interest rate hikes by the U.S. Fed dented gold’s appeal, according to Reuters. Spot gold was flat at $1,861.11 per ounce. For the week so far, the metal was down 0.2%. U.S. gold futures fell 0.3% to $1,873.00. The dollar edged up 0.1% against its rivals, and was set for a weekly gain. A stronger greenback makes dollar-priced gold more expensive for buyers holding other currencies.

Gold prices around one month low: Manav Modi, MOFSL

Gold prices hovered around one month low amid pressure from rising short-term yields, and were headed for a second consecutive weekly loss as markets reassessed their expectations of more interest rate hikes from the Federal Reserve. A string of hawkish signals from Fed officials kept the metal under pressure, as Fed Chair Jerome Powell and several other speakers warned that interest rates will likely rise further. Weekly jobless claim data was reported better than expectations , but remained at levels consistent with tighter labor markets. Uncertainty over a U.S. recession also grew, as a deepening inversion in the yield curve sent warning signs on the economy. Focus today will be on UK GDP, India IIP and Michigan inflation expectations. Broader trend on COMEX could be in the range of $1835-1870 and on domestic front prices could hover in the range of Rs 56,300-57,000.

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