Bullish sentiment intact , though global cues are negative

Despite a temporary dip due to selling pressure, the Indian market closed on Tuesday with the bullish sentiment intact. European markets fell over half a percent, and U.S. markets dipped slightly as uncertainty loomed over future interest rate decisions. Asian markets opened lower on Wednesday morning. The Indian market remains unconcerned about interest rate issues, but global concerns will likely affect it too.

In derivatives trading, GIFT Nifty closed Tuesday night at 24,690, opened on Wednesday morning at 24,710, and fell to 24,685. This indicates that the Indian market is expected to open lower today.

Global market scenario

European markets dropped up to 1% on Tuesday, with investors expressing concerns over the lack of clarity on economic matters. Sweden's central bank, Riksbank, cut its interest rate and hinted at further reductions.

The U.S. market experienced a slight decline on Tuesday, as concerns about upcoming employment data and the Federal Reserve Chairman’s speech on Friday weighed on the market. The Dow Jones index dropped 61.56 points (0.15%) to close at 40,834.97. The S&P 500 lost 11.13 points (0.20%), ending at 5597.12. Nasdaq fell 59.83 points (0.33%) to settle at 17,816.94.

U.S. futures are up this morning, with the Dow, S&P, and Nasdaq showing gains of 0.11%, 0.12%, and 0.10%, respectively.

After recent gains, Asian markets are down on Wednesday, with Japan’s Nikkei starting the day by three-quarters of a percent down.

Indian markets 

The Indian market saw a positive start on Tuesday, with further advances, but it gave up a significant portion of those gains by the close. The Sensex fluctuated between 80,517 and 80,943, while the Nifty moved between 24,607 and 24,734.

On Tuesday, the Sensex rose 378.18 points (0.47%) to close at 80,802.86. The Nifty gained 126.20 points (0.51%) to finish at 24,698.85. Bank Nifty climbed 0.86% (434.80 points) to close at 50,803.15.

The Midcap index increased by 0.84% to end at 58,247.85, while the Smallcap index rose 0.47% to close at 18,839.95.

Foreign investors sold shares worth ₹1,457.96 crore in the cash market on Tuesday, while domestic funds and institutions bought shares worth ₹2,252.10 crore.

If Nifty stays above 24,650, it could aim for 24,800-24,900. The index has support at 24,635 and 24,600, with resistance expected at 24,730 and 24,760.

Reliance-Disney merger faces threat

Reports suggest that the Competition Commission has opposed the merger between Reliance and Disney, citing concerns over a monopoly in cricket broadcasting rights, which could allow Reliance to dominate advertisers. The commission has asked the companies to provide justifications within 30 days if they want to avoid the merger being blocked.

Opposition to the merger is reportedly coming from industry giants like Sony, Zee, Netflix, and Amazon. It remains to be seen whether Reliance will give up cricket rights or make other concessions.

Gold prices continue to rise

Gold prices hit a new record, with December futures reaching $2,570 per ounce yesterday before retreating. Spot prices climbed as high as $2,530 before closing at $2,514.50. This morning, gold edged up to $2,516.

In Kerala, gold prices fell by ₹80 per sovereign to ₹53,280, but are expected to rise slightly today.

Silver is trading near $29.50 per ounce.

The dollar index dipped again, down by 45 points to 101.44, and this morning it stands at 101.40.

The rupee makes gains 

The rupee also made significant gains yesterday, with the dollar losing eight paise to end at ₹83.79. The weakness in the dollar index is the main reason, though many Asian currencies rose higher. The Reserve Bank intervened by buying dollars, preventing the rupee from strengthening further.

Crude oil prices remain low, with the market watching whether Hamas will agree to a ceasefire in Gaza, which Israel has already accepted. Brent crude fell slightly to close at $77.20 per barrel yesterday and rose to $77.28 this morning. WTI crude stands at $74.04, while UAE’s Murban crude is priced at $76.63.

Industrial metals, except copper, continue to rise. Copper fell by 0.62% to $9,085.67 per tonne. Aluminium climbed by 1.92% to $2,477.11 per tonne, while other metals increased by up to 2%.

Cryptocurrencies fell yesterday, with Bitcoin sliding towards $59,000. Ethereum is trading at $2,575 this morning.

Market Indicators (August 20, Tuesday)

Sensex 30: 80,802.86 +0.47%
Nifty 50: 24,698.85 +0.51%
Bank Nifty: 50,803.35 +0.86%
Midcap 100: 58,247.85 +0.84%
Smallcap 100: 18,839.95 +0.47%
Dow Jones 30: 40,834.97 -0.15%
S&P 500: 5597.12 -0.20%
Nasdaq: 17,816.94 -0.33%
Dollar ($): ₹83.79 -₹0.08
Dollar Index: 101.44 -0.35
Gold (ounce): $2,514.50 +$9.50
Gold (sovereign): ₹53,280 -₹80
Crude (Brent): $77.20 -$0.50