Things to Know before Trading on 3rd June 2019
by BM Research www.bmresearch.co.in
Nifty Index witnessed wild swing on Friday session with index dropping to an intraday low of 11832 after posting a high of 12038 just three points away from the 52 weeks high posted on Lok Sabha election result day.
In Sectoral indices, IT closed positive 1% while other sectors such as Auto, Banks, Realty, Pharma and Metals dropped. Bank Nifty slide 0.51%.
In Small and Midcap Space, NSE Midcap index fell 0.21% while NSE Small cap index fell 1.18%.
In the global, the US and the UK market gets fell overnight with President Trump’s announcement of imposing tariffs on Mexico.
- US Dow Jones Industrial Average falls sharp more than 350 points or 1.41% on Friday following Trump’s decision to impose tariffs on Mexico.
- The Nasdaq composite also dropped 1.5%.
- The UK blue-chip index FTSE also ended down 56.45 points or 0.78%
- US Treasury yield curve inversion deepens raising concerns
In Asian markets,
Indian and Global market at a glance
US- China working on a “Phase 1” trade deal
Positive news from the Brexit front boost the Global and…
- Japanese Nikkei opened 300 points lower and is down more than a percent
- SGX Nifty opens positive and currently trading 48 points up or 0.40% up which can indicate a positive start when Indian market opens.
- Hong Kong’s Hang Seng is also giving a positive start with 28 points up or gaining 0.11%
Events to watch out globally this week
- Nikkei manufacturing data, USD Markit Manufacturing PMI, US ISM manufacturing Data shall be released on Monday.
- The Reserve Bank of Australia (RBA) shall make decisions on the interest rate followed by speech by the RBA Governor and also US Fed’s Chair Powell will give a speech on Tuesday.
- Nikkei Services PMI data shall be released along with US ISM Non Manufacturing Data on Wednesday.
- US Non Farm Payroll Data shall also be released on Friday.
In India, all eyes will be on the RBI Monetary Policy Committee meet on June 6, hoping of another rate cut with the slowing of the GDP Growth, falling yields and rising bond prices. Traders will also keep an eye on the new reforms from the newly formed Modi Government. Market is hoped to rally again the Government comes with strong reforms.
In Commodities market, Crude oil prices have fallen since President Trump’s imposing tariff on Mexico. WTI Sweet Crude had fallen more than a percent today to quote around $52.70/bbl while Brent Crude has fallen from $64/bbl last Friday to open at $61.22/ bbl and has further declined to $60.98/bbl at the time of writing.
Disclaimer: https://bmresearch.co.in/ represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose