Indian Market- on a flat note

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Indian Equity market ended higher on Friday gaining almost a percent after a volatile trade. On the sectoral front, auto stocks rallied the most, followed by metal and media stocks. The Nifty Auto index ended at 7,102 levels, up over 2.61 per cent. However, auto stocks may be in focus s cut in GST rate might not be in the radar as reports came that the auto industry demands to hold back any cut in GST as it is under a weak revenue position.

In US, the Non Farm Payroll data which released on Friday signalled a slowdown in the labor market indicating that trade war has taken a toll on the economy. The U.S. economy added 130,000 jobs in August, the Labor Department said Friday. This marked the third straight monthly slowdown in jobs growth. Economists polled by Dow Jones expected jobs to grow by 150,000 last month. The Dow Jones Industrial Average ended the day up 69.31 points, or 0.3% at 26,797.46. The S&P 500 climbed just 0.1% to close at 2,978.71 while the Nasdaq Composite slipped 0.2% to 8,103.07.

In the speech of US Fed Chairman at a conference in Switzerland, Jeremy Powell mentioned that the central bank is not expecting a U.S. or global recession and are monitoring a number of uncertainties, including trade conflicts an appropriate manner to sustain.

Asian markets were generally higher in early trading Monday. On Monday, the Japanese government released revised economic growth data for the April-June quarter which showed that the GDP had grown at annual rate of 1.3%.

Japan’s Nikkei rose 0.5% while Hong Kong’s Hang Seng Index slipped 0.1%, as pro-democracy protests continued over the weekend. The Shanghai Composite SHCOMP, +0.36%   gained 0.4% and South Korea’s Kospi 180721, +0.45%   rose 0.6%.

The two days of deep correction in precious metals lead by some optimism in the financial market may get halted today after a weaker Chinese export data release on Sunday. On MCX, gold prices may stay firm above the support of 38300-350 range and one can buy for a target 38700 to 38900 with stop loss below the mentioned support. Silver can be bought at 48000 for target 48400 to 48700 with stop loss below 47700.

Nifty gives a negative start trading flat at the present moment. A pullback in Indian shares managed to push the rupee for past two sessions however the underlying trend remains weak for the local currency. FII continue to dump Indian stocks and sold over 5272 crores in Sep 2019 till date. We expect the USD/INR to trade between 71.60 to 72.10 today and one can look to buy around 71.60 with stop loss below 71.40.

Indian markets will be closed on Tuesday for ‘Muharram’. Investors will watch out for data on factory output (IIP) for July and retail inflation (CPI inflation) for August, scheduled to be out on Thursday, for further cues.

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

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