“Yesterday Gold prices corrected sharply by 0.57% and closed at 48865 levels on the back of strength in Dollar and fadeout expectation of stimulus package in US economy. The safe-haven dollar rallied as Federal bank may come out with positive stance on US economy after two days meeting. Strong dollar and increasing bond yield putting pressure on gold and silver. As of now traders can go for sell in gold at 48900 levels with the stop loss of 49100 levels for the target of 48200 levels. They can also go for sell in silver at 66000 with the stop loss of 66700 for the target of 64800 levels,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
Hindustan Unilever Ltd (HUL) share price fell as much as 2.5 per cent to Rs 2,330.75 apiece on BSE, after rising nearly a per cent in the opening trade. HUL reported a 19 per cent on-year rise in net profit to Rs 1,921 crore in the October-December quarter. While HUL’s revenue from operations surged 20 per cent on-year to Rs 11,682 crore during the quarter. While on the National Stock Exchange (NSE), the scrip fell 2.42 per cent to Rs 2,333.55 per share. So far in the intraday session, over 3.5 lakh shares were traded on the BSE, while 11.39 lakh shares exchanged hands on NSE, data from the respective stock exchanges showed.
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So far equities markets had seen a sell-off for past four consecutive session eroding nearly 5% of its valuation from all-time high, but the same did not translate in rupee weakness because FII inflows were constant. With excess liquidity being flushed in market on account of stimulus and lower lending rate by central banks had led to ballooning in the equity segment. However, seeing the global sell-off in equities investors seemed nervous which has led to foreign investors selling shares worth Rs 2453crs in past two trading sessions, thereby pressuring USDINR pair. Any steep fall in the pair shall be capped near 73.50 levels with the inflows lined up at one side and on the other side, RBI maintaining its stance on building FX reserve is capping gains in pair around 72.80 levels. As the overall sentiments remain cautious, momentum in the rupee could also be trapped within its present narrow-range of 72.80-73.50 levels. Thus any dips between 72.80-73.00 levels can be taken for buying and upticks above 73.40 shall be utilized to sell for near term exposures.: Amit Pabari, managing director, CR Forex Advisors
“14200-14250 was a key support which the market disrespected in a jiffy. The fall thereafter has happened on the back of very high volumes. We could slide further to test 13600. If we are unable to hold that level, we could fall more towards 13100-13200. As of right now, any up move can be utilised to short the Nifty. The resistance on the upside is at 14400-14500,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
“Markets, globally, have turned weak following the steady decline in the mother market US. The heightened speculative activity in certain segments in US markets have become an area of concern. Back home, in India, the third day of consecutive selling by FIIs ( Rs 1688) have turned the market mood bearish. The budget uncertainty will keep the bulls in restraint. On the positive side, Fed affirming the continuation of accommodative monetary policy and bond purchases of $ 120 billion every month ensures adequate liquidity for markets. In brief, a confuse set of market signals. Nifty has corrected around 5% from the peak. This is a healthy correction,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex opened below 47,000 for the first time since December last year. Nifty index was below 13,800 levels. Volatility was high.
COMEX gold trades 0.5% lower near $1835/oz after a 0.3% decline yesterday. Gold weakened as the Fed painted a downbeat outlook for the US economy but did not hint towards additional measures. Fed’s downbeat growth outlook and ECB’s willingness to cut rates pushed the US dollar higher putting pressure on gold. ETF outflows also showed weaker investor interest. However, supporting price is lower bond yields, mixed economic data from major economies and rising virus cases. Gold has come under pressure but we may not see sustained decline as US economic outlook and stimulus expectations may limit upside in the US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Sensex and Nifty ended the pre-open session deep in red which means the benchmark indices will open with losses on Thursday morning.
Sensex was sitting 700 points lower during the pre-open session on Thursday morning. Nifty was down nearly 200 points.
Sensex began pre-open session down nearly 1,000 points but soon recouped some losses but it moved below 47,000. Nifty slipped below 14,800.
Markets have reversed their short term uptrend this week. The reversal was confirmed once the recent low of 14222 was broken on Wednesday. With the Nifty now trading below the 20 day SMA and the 14 day RSI in decline mode, the technical indicators too are confirming the weakness seen in the markets.
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Nifty futures were trading 99 points or 0.71 per cent down at 13,885.20 on Singaporean Exchange, suggesting a weak opening for BSE Sensex and Nifty 50 on the day of expiry of monthly derivative contracts. Corporate earnings, foreign fund flows, COVID-19 vaccine and Budget related developments will sway the market sentiment. Headline indices have wiped out all the gains made so far in the calendar year 2021, tumbling over 5 per cent from their record highs of January 21, 2021.
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“The market opened lower and closed at the lowest point of the day on the back of consistent weakness in global markets as well as selling from FIIs in the cash segment. We are of the view that hot money is exiting ahead of the major event of the Union Budget. The decline is steeper than expectations from traders and reversal is missing. We are approaching monthly expiry on Thursday and on a monthly basis, the market has erased all the gains despite the Nifty/Sensex moved to 14750/50185. Certainly, it is negative for the market in the medium term (1 to 3 weeks), however, in the short term, we could see relief rally from 14000/13900 (47500/47200) levels. The strategy should be to buy at current levels and keep a final stop loss at 13700/46500 (50 DAYs SMA) for the same,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
A total of 129 companies including Maruti Suzuki India, Lupin, InterGlobe Aviation, Bharat Electronics Ltd, IDBI Bank, IRCTC, Mahindra & Mahindra Financial Services, RBL Bank, Route Mobile, Shriram Transport Finance, Tata Chemicals, TVS Motor Company and Welspun Corp among others are slated to announce their quarterly earnings today.
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Axis Bank on Wednesday reported a 36% year-on-year (y-o-y) drop in net profit for the December quarter (Q3FY21) to Rs 1,117 crore on higher provisions. The bottom-line was lower than the Bloomberg estimate of Rs 2,760 crore. The bank’s provisions rose 33% YoY to Rs 4,604 crore, but remained flat sequentially. The bank said the profits after tax for the quarter were adversely impacted to the extent of Rs 1,050 crore on account of prudent expenses and provisioning charges. Its operating profit rose 6% YoY to Rs 6,096 crore.
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Tweets from Elon Musk and Chamath Palihapitiya seem to have propelled NYSE listed video game retailer, GameStop to new highs during Tuesday’s trading session. The stock zoomed, a massive 92.7% during the market hours and if reports are to be believed, the stock went up another 60% after market hours. The shocking up-move charted by the stock is an addition to its 650% rally since the beginning of this year, which has taken the stock higher to now trade at $147.98 per share.
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Private investment, which has been muted for a long time, will start trickling in once the overall capacity utilisation in the system goes beyond 75 per cent that, in turn, will help unleash ‘animal spirits’, CII President Uday Kotak said on Wednesday.
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