India VIX was down in the red. (Image: REUTERS)
Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic benchmark indices BSE Sensex and Nifty 50 fell after hitting all-time highs on Wednesday, a day of weekly F&O expiry. S&P BSE Sensex was down 100 pts, while Nifty 50 index gave up 16,600 support level. UltraTech Cement, Bajaj Finance, HDFC Bank were the top Sensex gainers. On the other end of the table, trading with losses were, Kotak Mahindra Bank, ICICI Bank, HDFC, IndusInd Bank. India VIX traded with losses.
Inflation is expected to stabilise during the rest of the current financial year, following the trajectory anticipated by the central bank, leading bankers at the Reserve Bank of India (RBI) said. “So far, inflation is on track to stay within the trajectory envisaged and it is likely to stabilise during the rest of the year. In our view, this is a credible forward-looking mission statement for the path of inflation,” RBI bankers, including Michael D Patra said in the State of the Economy article in RBI’s August bulletin.
Sensex is continuing its northward journey with new highs every day for the last five trading sessions supported by inflows in large-cap stocks especially IT names. August month is all about large caps after 3 months of underperformance where Sensex is likely to test the 57000 marks while 55800-56000 is the intermediate resistance zone. On the downside, 55500 is immediate and strong support while 54750 will be the next important support at any correction. Santosh Meena , Head of Research, Swastika Investmart
Large caps are playing a catch-up rally in the month of August, driving the benchmark indices to higher levels, while the broader market is in a consolidation zone. Mid caps and small caps have seen a sharp rally in the last few months and now some profit booking is visible in the space which is a healthy sign for the market. Investors are now finding comfort in the large cap space which provides more margin of safety over the broader market at current levels. We continue to see the broader market doing well, so any dips should be utilized to build positions in quality stocks where the earnings visibility and the balance sheet strength is very high. Returns from current levels will be more calibrated and focus on quality and value will yield sustainable returns. Naveen Kulkarni, Chief Investment Officer, Axis Securities
TCS, Infosys, HCL Technologies, Wipro share prices hit their respective 52-week highs on Wednesday, taking the Nifty IT index to a fresh high of 33,840.45 levels. Tata Consultancy Services stock hit a new high of Rs 3,594.60, gaining over half a per cent. In the previous session, TCS became the second most valuable domestic firm in terms of market valuation after Reliance Industries Ltd (RIL) with mcap of over Rs 13 lakh crore.
Retail buying is continuing to push headline indices higher into blue sky zone (new highs). Since no bull is losing money at current levels there is little chance of profit-taking emerging. That is adding to the buying confidence. The weekly expiry of index options is triggering a short squeeze (bears being forced to cover short sales). These confluence factors are leading markets higher. Vijay Bhambwani, Head of Research - Behavioral technical analysis, Equitymaster
NSE Nifty 50 is likely to remain in the 16650-16750 range on weekly futures & options expiry day, while 36000 will act as an important level for Bank Nifty. Analysts expect the Bank Nifty index to settle around this level on Wednesday. Gains in index heavyweights such as Bajaj Finance, Eicher Motors and HDFC Bank, among others, pushed the Nifty 50 index above 16,700 level for the first time ever. Bank Nifty surged to 36248.90 levels. “As far as options data is concerned for Nifty, 16600-16650 put writers are looking convinced and hence we do not expect the expiry to pan out below this range. On the flip side, as of now, there is no indication of surpassing 16700-16750 either,” Sameet Chavan, Chief Analyst – Technical and Derivatives, Angel Broking, told Financial Express Online.
The present bull run primarily driven by the new retail investors is in an overbought, richly valued zone. This year metal index has been the outperformer with Nifty Metal Index leading with 76% return followed by the Nifty IT Index with 38% return. But it is important to remember that even sectors with good earnings visibility, like IT and metals, are highly valued. Therefore, even while remaining invested in this bull market, investors have to be cautious while committing fresh funds. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The market has been consistently surprising even the incorrigible optimists by setting new records. The Sensex has scaled the 56000 mark this morning. It is interesting to note that the Sensex has multiplied 560 times since its inception with 1979 as the base year. By averaging around 15% CAGR during the last 42 years, Sensex has rewarded long-term investors handsomely. However, the journey of the market has been volatile with sharp ups and downs unnerving the short-term investors and traders. The future would be no different. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The market capitalization of BSE-listed companies reached its all-time high of Rs 2,42,08,041.64 crore on Wednesday, helped by a rally in the equity market where the benchmark index scaled the 56,000-mark for the first time.During the morning trade, the 30-share BSE benchmark index jumped 312.44 points to its lifetime high of 56,104.71, continuing its winning run for the fifth session in a row. PTI
Rupee has been staying in a range of 74.10 to 74.40 with RBI and oil protecting the downside and upside not being breached due to stock market-related flows. The range continues for the day with an opening around 74.30. European currencies are all down taking the dollar index up while Asian currencies are still in a range. Exporters sell the good upticks while importers buy the dips in this range. Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
The index is trading above the resistance level of 16600. This should allow Nifty to achieve its next target of 16800-16850. Good support lies at 16400 and hence any dip can be utilized to accumulate long positions. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
On the options front, the highest OI is placed at 16500 PE but the 16600-16575 area will act as immediate support area following a gap up opening and only a move below 16575 can lead to any intraday weakness where 16500 is a major support. Santosh Meena, Equity Research Head, Swastika Investmart
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading higher in India on Wednesday, mirroring global trends as escalating concerns over the economic fallout from the spread of the coronavirus’ Delta variant dented sentiment towards riskier assets, lifting bullion’s appeal. On Multi Commodity Exchange, gold October futures were trading Rs 90 or 0.19 per cent up at Rs 47,370 per 10 gram, as against the previous close of Rs 47,280.
On the domestic side, the market could welcome a decision on the RoDTEP scheme which is aiming at refunding the duties paid by exporters. The scheme is roughly covering 65% export community with a total benefit of Rs. 12,454 crores covering 8555 products. However, the impact of the same on Rupee will remain limited due to intolerance of RBI on the appreciating side. The recently released RBI bulletin also suggests that RBI is continuously converting its long forwards position into the spot as it fell from $59 billion to $49 billion at the end of June. Hence, the downside is likely to remain protected and limited up to 74.10-74.20 levels. Broadly, the stronger US Dollar could help the USDINR pair to jump above the resistance of 74.50 and extend its move up to 74.90-75.00 over the near term. Amit Pabari, managing director, CR Forex Advisors
"The outperformance of large-caps, aided by the robust performance of IT majors, is likely to continue as the froth in the broader market is slowly getting removed. This is a healthy sign. An important trigger for the market today would be the good news for HDFC Bank. RBI's decision to partially remove restrictions on credit card issuances by HDFC Bank would help this bluechip regain some of its lost shine. This would be favourable to Bank Nifty too which has been underperforming this year. But it is important to understand that partly the good news is already in the price since HDFC Bank is up by 6% this month, perhaps in anticipation of the positive development. Meanwhile, retail investors continue to buy aggressively in the market unmindful of the excessive valuations, particularly in the broader market. It's time to move over to the safety of large-caps from the over-valued mid-and small-caps," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Domestic benchmark indices opened at fresh all-time highs on Wednesday morning. Bank Nifty regained 36,000. India VIX was trading with losses.
"Indian benchmark indices are expected to open on a slight positive note as suggested by trends on SGX Nifty. US indices closed lower on Tuesday snapping a five-day winning streak. Asian markets were positive in the early Wednesday trade with Nikkei, HangSeng, Kospi and Chinese indices all trading in green. RBI signalled that financial conditions are supportive of economic recovery due to comfortable liquidity positions in their bulletin released yesterday. Stock specific actions can be witnessed in stocks such as HDFC Bank (RBI has allowed the bank to issue new credit cards), HCL Tech (Signed a five-year, end-to-end IT transformation services deal with Wacker Chemie AG), DCM Shriram Industries (entered into an agreement with Zyrone Dynamics Havacilik Danismanlik Ve Ar-Ge San. Tic. A.S., Turkey), Isgec Heavy Engineering (Received an order for two Gas Fired Boilers from Naval Project, Indian Navy). On the technical front, 16,400 and 16,750 are immediate support and resistance in Nifty 50," sadi Mohit Nigam, Head - PMS, Hem Securities.
Sensex has breached 56,000 mark and is set to open above the said levels for the first time ever. Nifty is nearing 16,700 after setting a new all-time high at 16,691.
Sensex reached 56,000 during the pre-open session on Wednesday while Nifty 50 was just shy fo 16,700 mark.
Sensex crossed 55,900 during Wednesday's trading session while the NSE Nifty 50 touched 16,700.
SGX Nifty was up 55 points on Wednesday morning, extending gains and signalling a positive start for domestic markets.
"Nifty finds support around 16400 while 16700 will act as resistance. Bank Nifty finds support around 35500 while 36200 will act as resistance on the upside. Asian markets opened in the green led by the Japanese 'Nikkei' traded higher by over 100 points in early trade. Asian markets have been seeing profit booking due to the Chinese tech selloff and the chip shortage which is hurting Taiwan and South Korean markets main Corporates. For today expect some consolidation as Chinese stocks to see buying interest as valuations become very attractive," said IIFL Securities.
"Nifty is relentless while Bank Nifty is struggling to find its feet. The next target of 16,800 is on cards. Support placed at 16,495 and 16,400," said Rahul Sharma, Director & Head - Research, JM Financial.
On Wednesday, against the backdrop of the weekly expiration of index options, the Nifty would find resistance between the 16650 and 16700 levels. On the other hand, 16500 and 16450 would serve as a major support level for the short term. The Bank Nifty has seen a bullish reversal after moving to the lower limit of the trading zone between 35600 and 36300. Based on that, the Bank Nifty should move towards the 36300 levels.
"Nifty is expected to open positive at 16650, up by 50 points since yesterday's close. Nitty has strong support at 16480 and 16450 levels. It may face some minor resistance at 16680 and 16720 levels. Buying on dips with strict stop-loss can be a good strategy," said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Petrol prices remain unchanged for the 32nd consecutive day across metros but oil marketing companies have trimmed the rate of diesel today. Petrol in the national capital today costs Rs 101.84 per litre, while Diesel in the capital city is retailing at Rs 89.67 per litre, down 20 paise from yesterday. Fuel prices have increased 41 times since May 4, now sitting at all-time highs. The price of petrol in Delhi has increased by Rs 11.15, while diesel price surged Rs 10.80 per litre before today’s cut. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.
After posting record closing highs on Tuesday, BSE Sensex and Nifty 50 were likely to open at fresh record high levels on the day of weekly F&O expiry. On Tuesday, BSE Sensex surged 210 points or 0.4 per cent to 55,792.27, while the Nifty 50 index ended at 16,614, rising 0.31 per cent or 51.55 points. Analysts see Nifty 50 touching 16,850 as next target in the short term.
The year 2021 could turn out to be India’s year of IPO with the domestic unicorns through their public issues setting “domestic stock markets on fire and global investors in a frenzy”, an RBI article said on Tuesday. The successful Initial Public Offerings (IPOs) by new-age companies in the recent months are a reflection of bullishness about Indian technology, it said.
"Presently, Nifty is showing a sustainable upmove with range bound action. On the weekly chart previous 7-8 weeks range movement has resulted into an upside breakout in the past (May-21) and similar market action has observed recently (early part of Aug). Hence, there is a higher chance of further upside for the Nifty for next 1 -2 weeks, before shifting into another broader high low range movement. The short term trend of Nifty continues to be positive. There is a possibility of further upside with range bound action for short term. The next upside levels to be watched 16800-16900 levels in the next few sessions. Immediate support is placed at 16540 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
SGX Nifty is trading with gains on Wednesday morning. Nifty futures surging higher ahead of the opening bell hint at positive momentum ahead of the day's trade.
Inflation is set to follow the trajectory anticipated by the central bank and may stabilise during the rest of the current financial year, executives at the Reserve Bank of India (RBI) wrote in the State of the Economy article in the August bulletin. “So far, inflation is on track to staying within the trajectory envisaged and it is likely to stabilise during the rest of the year. In our view, this is a credible forward-looking mission statement for the path of inflation,” said the authors, one of whom is deputy governor Michael Debabrata Patra.
Share Market LIVE: Sensex off record high, turns negative, Nifty gives up 16,600 support; Kotak Bank top loser - The Financial Express
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