Indian benchmark indices on Thursday made a strong comeback from the day’s lows to end positive for the second day in a row. D-Street heavyweights Reliance Industries (RIL), ICICI Bank and HDFC Bank led the turnaround. Sectorally auto, IT and banks contributed the most. While the BSE Sensex surged 1200.18 points or 1.5% to close at 82,530.74, the broader Nifty was shot-up by 395.20 points or 1.6% to end the day at 25,062.10.
Commenting on the day's action, Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities said that Nifty surpassed the 25,000 mark giving its highest closing of the last seven months propelled by strong buying interest in metal, auto, IT, and realty stocks. "It is now decisively above the key psychological resistance of 25,000," he said.
In his view, the short term trend of the Nifty remains positive as it is placed above its important short term moving averages. "Next resistance for the Nifty is seen at 25,207, derived from 76.4% retracement of the entire fall seen from 26,277 to 21,743. On the downside, 24,800 could offer immediate support," Shah said.
Here's breaking down of the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 96.50 points, or 0.38 per cent, at 25,175, signaling that Dalal Street was headed for positive start on Friday.
US stocks mixed
Wall Street stocks ended mixed on Thursday, with gains in Cisco Systems following an upbeat forecast, while UnitedHealth tumbled after a report of a criminal investigation into the insurer.
Asian shares gain
Asian equities followed Wall Street higher in a sign the stock market rally has further to run. Treasuries advanced on Thursday as traders priced in two Federal Reserve rate cuts this year.
Oil rises
Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1% as U.S.-China trade optimism outweighed the prospects of Iranian supply returning to the market.
Gold prices ease
Gold prices eased on Friday and were on track for their steepest weekly decline in six months, as a stronger dollar and waning trade war concerns dampened its appeal as a safe-haven asset.
Dollar falls
The dollar fell in tandem with U.S. Treasury yields on Friday after downside surprises on U.S. economic data this week cemented bets of more Federal Reserve rate cuts this year.
FII/DII action
Foreign institutional investors (FIIs) were net buyers of Indian equities as they bought shares worth Rs 5,392.94 crore on Thursday while the domestic institutional investors (DIIs) shares worth Rs 1,668.47 crore.
Stocks in Ban
Three stocks are under F&O trade ban viz. CDSL, Hindustan Copper and Manappuram Finance.
Rupee
The Indian rupee fell on Thursday, weighed down by persistent interbank dollar demand, but pared losses after President Donald Trump said that India had offered a zero-tariff trade deal to the United States. The rupee closed at 85.55 against the US dollar, down 0.3% on the day but above its intraday low of 85.7225.
The rupee rose above 85.50 in an immediate reaction to Trump's comments but thereafter bids from foreign and local banks picked up, a trader at a Mumbai-based bank said. The dollar bids were likely spurred by corporate demand and modest portfolio outflows, the trader said.
The dollar-rupee overnight swap rate also dipped, pointing to heightened demand for cash dollars, which typically indicates a pick up in outflows.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Commenting on the day's action, Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities said that Nifty surpassed the 25,000 mark giving its highest closing of the last seven months propelled by strong buying interest in metal, auto, IT, and realty stocks. "It is now decisively above the key psychological resistance of 25,000," he said.
In his view, the short term trend of the Nifty remains positive as it is placed above its important short term moving averages. "Next resistance for the Nifty is seen at 25,207, derived from 76.4% retracement of the entire fall seen from 26,277 to 21,743. On the downside, 24,800 could offer immediate support," Shah said.
Here's breaking down of the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 96.50 points, or 0.38 per cent, at 25,175, signaling that Dalal Street was headed for positive start on Friday.
- Tech View: The recent surge in the Nifty index has reinforced our positive outlook, Ajit Mishra, Senior Vice President, Research at Religare Broking said. "A decisive breakout above the 25,200 level could potentially take the index towards the 25,400+ zone. We continue to advocate a buy on dips strategy, with a strong emphasis on selective stock picking, especially in light of overbought conditions in certain segments," Mishra said.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 1.93% to settle at 16.89 levels.
US stocks mixed
Wall Street stocks ended mixed on Thursday, with gains in Cisco Systems following an upbeat forecast, while UnitedHealth tumbled after a report of a criminal investigation into the insurer.
Asian shares gain
Asian equities followed Wall Street higher in a sign the stock market rally has further to run. Treasuries advanced on Thursday as traders priced in two Federal Reserve rate cuts this year.
- S&P 500 futures were little changed as of 9:20 a.m. Tokyo time
- Hang Seng futures fell 0.6%
- Japan’s Topix was little changed
- Australia’s S&P/ASX 200 rose 1.1%
- Euro Stoxx 50 futures rose 0.2%
Oil rises
Oil prices edged up on Friday following a sharp drop in the previous session, heading for a weekly gain of more than 1% as U.S.-China trade optimism outweighed the prospects of Iranian supply returning to the market.
Gold prices ease
Gold prices eased on Friday and were on track for their steepest weekly decline in six months, as a stronger dollar and waning trade war concerns dampened its appeal as a safe-haven asset.
Dollar falls
The dollar fell in tandem with U.S. Treasury yields on Friday after downside surprises on U.S. economic data this week cemented bets of more Federal Reserve rate cuts this year.
FII/DII action
Foreign institutional investors (FIIs) were net buyers of Indian equities as they bought shares worth Rs 5,392.94 crore on Thursday while the domestic institutional investors (DIIs) shares worth Rs 1,668.47 crore.
Stocks in Ban
Three stocks are under F&O trade ban viz. CDSL, Hindustan Copper and Manappuram Finance.
Rupee
The Indian rupee fell on Thursday, weighed down by persistent interbank dollar demand, but pared losses after President Donald Trump said that India had offered a zero-tariff trade deal to the United States. The rupee closed at 85.55 against the US dollar, down 0.3% on the day but above its intraday low of 85.7225.
The rupee rose above 85.50 in an immediate reaction to Trump's comments but thereafter bids from foreign and local banks picked up, a trader at a Mumbai-based bank said. The dollar bids were likely spurred by corporate demand and modest portfolio outflows, the trader said.
The dollar-rupee overnight swap rate also dipped, pointing to heightened demand for cash dollars, which typically indicates a pick up in outflows.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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