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Market Movers: What changed for D-Street while you were sleeping

Nifty50 topped the 12,100 mark for the first time ever on Wednesday.

ETMarkets.com|
Nov 28, 2019, 08.08 AM IST
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NEW DELHI: Expiry of November series F&O contracts can trigger volatility in domestic stocks on Thursday, even as derivative positions of traders suggest Nifty is unlikely to fall below 12,000 level.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 24.50 points, or 0.20 per cent, lower at 12,100.50, indicating a negative start for Dalal Street.

Tech view: Nifty forms large bullish candle
Nifty50 topped the 12,100 mark for the first time ever on Wednesday. Analysts said the index is likely to see more upside in the coming sessions, but the resistance at 12,133 needs to be taken out first, they said.

Asian shares waver on Hong Kong tensions
Asian share markets wobbled as concerns that tensions over Hong Kong could stymie a US-China trade deal cast a pall over cheer from positive US economic data, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, while Japan's Nikkei flitted in and out of positive territory.

US stocks closed at record highs
In overnight trade, Wall Street stocks hit new all-time highs following better-than-expected US economic data, AFP reported. The Dow Jones Industrial Average concluded the day at 28,164.00, up 0.2 per cent. The broad-based S&P500 index gained 0.4 per cent to end at 3,153.63, while the tech-rich Nasdaq Composite index advanced 0.7 per cent to close at 8,705.18.

November F&O series to expire today
November series futures and options contracts of will expire today. On Wednesday, traders added huge open interest (OI) at the 12,100-strike put for the current expiry. Over 13 lakh shares (75 shares equal one contract) were added, taking total OI to 26.45 lakh shares. This huge selling of at-the-money puts means that traders don’t expect the market to close below 12,100.

Oil prices fall on US inventory buildup
Oil prices fell on Thursday, extending losses from the previous session after official data showed US crude and gasoline stocks rose against expectations and production hit a record, Reuters reported. Brent crude futures were down 16 cents, or 0.3 per cent, at $63.90 a barrel, having dropped 0.3 per cent on Wednesday.

DIIs buy Rs 440 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 42.93 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 439.51 crore, data suggests.

MONEY MARKETS

  • Rupee: The rupee appreciated by 15 paise to close at more than two-week high of 71.35 against the US dollar on gains in domestic equities and sustained foreign fund inflows.

  • 10-year bonds: India 10-year bond yield fell 0.19 cent to 6.47, after trading in 6.47-6.50 range.

  • Call rates: The overnight call money rate weighted average was 5.04 per cent, according to RBI data. It moved in a range of 3.70-5.30 per cent.

MACROS

China angry over Trump legislation on HK
China's Foreign Ministry on Thursday said it will take "firm counter measures" if the United States continues to interfere in Hong Kong. It said legislation signed by US President Donald Trump on Wednesday backing protesters in Hong Kong was a serious interference in Chinese affairs and US efforts were "doomed to fail".

States' debt threat to fiscal deficit: Moody's
State governments will likely face difficulties in reducing deficits as economic growth slows and infrastructure spending continues, according to a report by credit ratings agency Moody's. Challenges in controlling deficits at the state level will also impact fiscal consolidation efforts at the Centre which Moody's projects will post a fiscal deficit of 3.7% of GDP instead of the 3.3% target. Moody's expects the debt burden of state governments to increase significantly from Rs 7.5 lakh crore in loans budgeted for this fiscal, which itself represents an increase of 28% over total state borrowing in FY2019.

Growth down, but no recession, says FM
Finance Minister Nirmala Sitharaman on Wednesday launched a spirited defence of her handling of the economy, comparing macroeconomic indicators with past Congress rules and said the growth may have slowed down but the economy will never slip into recession. Replying to a short-duration discussion on the state of the economy in the Rajya Sabha, she said steps taken by the government post her maiden budget have started bearing fruits and some sectors such as automobiles have shown signs of recovery.

Wholesale onion prices hit Rs 100/kg
Wholesale onion prices have shot up Rs 100/kg for the first time in history of the country and expected to remain high until new supply reaches the market in the second half of December. Good quality onions have traded above Rs 90 a kg in most wholesale markets in Maharashtra, with some reporting threedigit rates, traders said. Wholesale rates in Solapur and Sangamner in Maharashtra rose to Rs 110/kg while Vashi reported Rs 100/kg on Monday. On Wednesday, though, prices had eased in the Vashi wholesale market to trade in the range of Rs 55/kg to Rs 95/kg, while the average rate was Rs 75/kg.

Air India will have to close if not privatised: minister
India’s state-run airline will have to cease operations if it is not privatised, the country’s junior minister for civil aviation said in parliament on Wednesday, in response to a lawmaker’s question on the subject. A group of officials, including India’s home and finance ministers, is finalising the process of inviting bids from the private sector for the loss-making national carrier.

Biggest fall in China’s Oct industrial profits
Profits at China’s industrial firms continued to slide in October, posting their steepest fall since 2011 as producer prices remained weak and trade tensions with the US weighed on the world’s second largest economy, reports South China Post. Industrial profits plummeted 9.9 per cent to 427.56 billion yuan (US$60.7 billion) in October from a year earlier, down from a 5.3 per cent contraction in September, according to the National Bureau of Statistics (NBS). The result was below analysts’ expectations.

Telecom records Rs 41k cr dip in gross revenue
The telecom sector's gross revenue fell about Rs 41,000 crore in three years on account of a dip in mobile services rates, said Telecom Minister Ravi Shankar Prasad on Wednesday. Gross revenue of the telecom sector in 2016-17 was Rs 2.65 lakh crore, which had reduced to Rs 2.46 lakh crore a year later and then to Rs 2.24 lakh crore in 2018-19, Prasad said in a written reply to a question in the Lok Sabha.
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