Bulls press forward despite selling pressure; gold surges

The bulls managed to hold their ground despite selling pressure trying to pull the market back from its rally on Tuesday. Concerns over Maruti's earnings expectations may dampen market sentiment today. However, a rise in US futures and strong results from tech companies could support IT stocks. It's encouraging that foreign investors are selling less, and Asian markets are up today.

In the derivatives market, Gift Nifty closed at 24,450 on Tuesday night but has fallen to 24,440 this morning, suggesting that the Indian market is set to open lower today.

Global markets

European markets were down on Tuesday, although HSBC saw a 4% increase due to strong results. Novartis, despite good earnings, saw a decline.

US markets were mixed yesterday: the Dow Jones fell, while the other two major indexes rose. The Dow closed down by 154.52 points (0.36%) at 42,233.05, while the S&P rose by 9.40 points (0.16%) to 5,832.92, and the Nasdaq gained 145.56 points (0.78%) to finish at 18,712.75.

This morning, US futures are up, with the Dow rising by 0.16%, the S&P by 0.31%, and the Nasdaq by 0.33%. Alphabet's after-hours results exceeded expectations, leading to a 5.5% increase in its shares. Snap shares jumped by 10%, and Reddit soared by 24%. However, despite good growth, chipmaker AMD saw its shares fall by 8%.

The yield on US 10-year Treasury notes rose to 4.246%.

Asian markets are up today, with Japan's Nikkei index rising by 1%. The Australian market is slightly down.

Indian market

The Indian market opened lower on Tuesday morning but managed to close with gains after some fluctuations. The Sensex, despite dropping to a low of 79,421.35, closed higher, while Nifty dipped to a low of 24,140.85.

The auto, IT, pharma, healthcare, and FMCG sectors struggled yesterday, while the banks, financial services, real estate, metals, consumer durables, and oil and gas sectors saw gains. The Public Sector Banks Index rose by 3.64%, with SBI shares climbing by 5.5%. Following excellent second-quarter results, Federal Bank shares surged by 9%, crossing Rs 200.

On Tuesday, foreign investors sold a net of Rs 548.69 crore in the cash market. This brings their total sales for the month to Rs 1,04,018.94 crore. In contrast, domestic funds and institutions made net purchases of Rs 730.13 crore, totaling Rs 99,221.81 crore for the month.

Overall, on Tuesday, 1,730 shares rose while 1,064 fell on the NSE. On the BSE, 2,189 shares rose and 1,679 fell.

The Sensex closed at 80,369.03, gaining 363.99 points (0.45%), while the Nifty rose by 127.70 points (0.52%) to end at 24,466.85. The Bank Nifty jumped by 1,061.40 points (2.07%) to close at 52,320.70. The mid-cap index rose by 0.92% to finish at 56,251.30, and the small-cap index gained 0.76% to close at 18,198.95.

Despite yesterday's positive closing, the prospects for further gains remain uncertain due to disappointing company results. The Nifty may continue to rise only if it closes strongly above 24,500. Support levels for today are expected at 24,235 and 24,155, while resistance levels are at 24,495 and 24,575. 

Gold price escalates

Gold prices are soaring, with December holiday contracts climbing above $2,787. Spot prices rose more than 1% on Tuesday, closing at $2,775.60 an ounce, and currently stand at $2,779. Gold has increased over 40% this year, driven by lower interest rates, increased central bank purchases, and ongoing conflicts.

In Kerala, gold prices rose by Rs 480 on Thursday to reach Rs 59,000, and further increases are expected today. Silver closed at $34.43 per ounce.

The dollar has softened slightly, with the dollar index closing at 104.28 and dropping to 104.24 this morning. The Indian rupee gained marginally on Tuesday, closing down by two paise at Rs 84.06.

Crude oil prices fell slightly, with Brent crude closing at $71.12 yesterday and at $71.26 this morning. WTI crude was at $67.39, and UAE's Murban crude was at $70.59 to the dollar.

Cryptocurrencies also surged, with Bitcoin rising more than 5% to $73,512.65, slightly below its record price of $73,601.59 reached on March 14. Ether also rose by 5% to above $2,635.

Industrial metals showed mixed results yesterday. Copper fell by 0.14% to $9,387.87 a tonne, while aluminum rose by 0.42% to $2,661.96. Tin decreased by 0.67%, nickel by 1.27%, and lead by 1.23%, while zinc rose by 1.81%.

Market indicators

Sensex: 80,369.03 (+0.45%)
Nifty50: 24,466.85 (+0.52%)
Bank Nifty: 52,320.70 (+2.07%)
Mid Cap 100: 56,251.30 (+0.92%)
Small Cap 100: 18,198.95 (+0.76%)
Dow Jones: 42,233.05 (-0.36%)
S&P 500: 5,832.92 (+0.16%)
Nasdaq: 18,712.75 (+0.78%)
Dollar (₹): 84.30 (+₹0.22)
Dollar index: 104.28 (-0.04)
Gold (oz): $2,775.60 (+$32.80)
Gold (Pavan): ₹59,000 (+₹480)
Crude (Brent): $71.12 (-$0.30)