Bulls hopeful despite selling pressure; Japan stocks fall

Bulls are optimistic about a market rebound today following a slight dip on Friday. Despite no change in the market's overall bullish sentiment, analysts caution that selling pressure persists. 

Foreign investors are showing significant interest in Indian stocks, providing some positive outlook. Asian markets, excluding Japan, are also bullish, while the Japanese market crash is attributed to the change in the prime minister.

Key economic indicators, including India’s core sector production index, central bank deficit, and current account deficit, will be released this evening. The Purchasing Managers’ Index (PMI), reflecting trends in the manufacturing and services sectors, is expected tomorrow. No major changes are anticipated.

In the derivatives market, Gift Nifty closed at 26,289 on Friday night and rose to 26,315 this morning, indicating a slight loss as trading begins today.

Global market update

European markets hit record highs on Friday, buoyed by the Chinese stimulus plan, boosting luxury product stocks. 

US markets showed mixed results: the Dow Jones rose slightly to a record, while the other two major indices dipped marginally. Weekly and monthly gains were strong, with the Dow up 1.8%, S&P 1.6%, and Nasdaq 2.3% in September. The Personal Consumption Expenditure inflation index rose 2.2% in August, less than expected.

The focus this week is the jobs report for September, with unemployment expected to remain at 4.2% and employment growth at 1.3 lakh. On Friday, the Dow Jones gained 137.89 points (0.33%) to close at 42,313.00, while the S&P fell by 7.20 points (0.13%) to 5,738.17, and the Nasdaq dropped by 70.70 points (0.39%) to 18,119.59. 

The US futures are slightly higher this morning. The Dow is up 0.08 percent, the S&P is up 0.14 percent, and the Nasdaq is up 0.18 percent.

The price of the US 10-year Treasury note rose to a yield of 3.75 percent.

Asian markets are mixed today, with Japan's Nikkei falling by 4% over concerns that Shigeru Ishiba’s appointment as prime minister may lead to higher interest rates. Meanwhile, the Australian index corrected a record, and the Chinese market surged by 15.7% last week, its biggest gain since November 2008, driven by the stimulus package. China's factory output data, due today, will be crucial.

Indian market update

Indian markets opened with modest gains on Friday but ended lower after a volatile session due to heightened selling pressure at higher levels. The Sensex rose to 85,978.25, and Nifty to 26,277.35 before market correction.

Mid-cap and small-cap stocks ended marginally lower. Foreign investors sold stocks worth Rs 1,209.10 crore in the cash market, while domestic funds and institutions bought shares worth Rs 6,886.65 crore.

Foreign investment in Indian stocks amounted to $2.83 billion last week, totalling Rs 57,539 crore in September—the highest since December.

On Friday, prices of 1,420 shares rose, while that of 1,391 shares fell on the NSE; on the BSE, prices of 1,932 share rose, while that of 2,017 fell.

The Sensex ended 264.27 points (0.31%) lower at 85,571.85, and the Nifty closed at 37.10 points (0.14%) less at 26,178.95.

Bank Nifty lost 1% (541.05 points) to close at 53,834.30. The mid-cap index fell by 0.15% to 60,381.15, and the small-cap index declined by 0.10% to 19,242.00.

Sectors that went up included auto, metal, public sector banks, IT, pharma, healthcare, oil-gas, and consumer durables, while banks, FMCG, financial services, realty, and media saw declines.

The market remains bullish, and as long as Nifty stays above 26,000, it will target the 26,300-26,500 range, with 25,800-26,000 acting as strong support levels. Today, Nifty has support at 26,150 and 26,125, while 26,250 and 26,280 will serve as resistance.

Gold prices fluctuate

Gold experienced a minor decline due to profit-taking over the weekend but rebounded this morning. It closed at $2,658.90 per ounce on Friday, rose to $2,666, and then dropped to $2,659. 

Gold prices in Kerala reached a record high of Rs 56,800 on Friday before falling b Rs 40 to Rs 56,760 on Saturday. Silver was slightly down at $31.66 per ounce.

Currency and crude oil update

The dollar index closed at 100.38 on Friday and edged up to 100.40 this morning. The Indian rupee weakened, with the dollar rising by six paise to close at Rs 83.70 on Friday.

Crude oil prices rose slightly over the weekend. Brent crude closed at $72.31, rising to $72.56 this morning. WTI crude stood at $68.39, and UAE's Murban crude was at $72.00.

Cryptocurrency and industrial metals

Cryptocurrencies experienced significant weekend gains before settling lower this morning. Bitcoin reached above $66,000 before dropping to $65,500, while Ether rose to $2,720 and then fell to $2,655.

Industrial metals moved in different directions on Friday. Copper dropped 0.99% to $9,846.36 per tonne, while aluminium rose 1.35% to $2,646.67. Zinc rose by 0.23%, tin by 0.10%, and nickel by 0.62%, while lead increased by 1.10%.

Market Indicators (27 September 2024, Friday)

•    Sensex 30: 85,571.85 (-0.31%)
•    Nifty50: 26,178.95 (-0.14%)
•    Bank Nifty: 53,834.30 (-1.00%)
•    Mid Cap 100: 60,381.15 (-0.15%)
•    Small Cap 100: 19,242.00 (-0.10%)
•    Dow Jones 30: 42,313.00 (+0.62%)
•    S&P 500: 5,738.17 (-0.13%)
•    Nasdaq: 18,119.59 (-0.39%)
•    Dollar ($): ₹83.70 (+₹0.06)
•    Dollar index: 100.38 (-0.14)
•    Gold (oz): $2,658.90 (-$15.60)
•    Gold (Sovereign – 8 gram): ₹56,800 (+₹320) (Saturday ₹56,760 -₹40)
•    Crude (Brent) oil: $72.31 (+$0.71)