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Markets face slight uncertainty; tonight's Nvidia results are crucial

Despite closing higher for the ninth consecutive day on Tuesday, the markets do not exhibit a bullish sentiment, with indices indicating the possibility of consolidation.

By TC Mathew 28 Aug 2024

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The market is witnessing slight uncertainty. Although broader economic indicators remain positive, a period of consolidation is expected in the coming days. Nvidia's results, expected tonight, are critical for the market's direction.

In the derivatives market, GIFT Nifty closed at 25,012 on Tuesday night and slipped to 24,995 this morning. This suggests a likely lower opening for the Indian market today.

European and US markets

European markets closed with modest gains yesterday. Meanwhile, the U.S. market opened lower on Tuesday but managed to close with marginal gains. Nvidia, which is set to release its results tonight, rose by one percent. Investors are keen to see if the company can replicate its stellar performance from previous quarters. Any signs of weakness could be a setback for the market.

The U.S. 10-year Treasury yield fell to 3.82%.

On Tuesday, the Dow Jones index rose by 9.98 points (0.02%) to close at a record 41,250.50. The S&P 500 gained 8.96 points (0.16%) to finish at 5625.80, while the Nasdaq climbed 29.06 points (0.16%) to close at 17,754.82.

U.S. futures are down this morning, with the Dow down by 0.09%, the S&P 500 by 0.18%, and the Nasdaq by 0.37%. Asian markets are also trading lower this morning.

Indian markets

The Indian market was volatile on Tuesday. The Nifty climbed to an all-time high of 25,078.30 but slipped due to profit-taking.

Zee Entertainment shares surged by 12% after resolving issues with Sony India following a failed merger attempt. Dish TV gained 4%, and Nifty Media rose by 4.1%.

On Tuesday, the Sensex rose by 13.65 points (0.017%) to close at 81,711.76, while the Nifty closed with a 7.15-point gain (0.029%) at 25,017.75. Bank Nifty climbed by 0.26% (130.65 points) to close at 51,278.75.

The Mid-cap index rose by 0.49% to 59,220.25, while the Small-cap index gained 1.05% to finish at 19,333.30.

Foreign investors bought shares worth ₹1,503.76 crore in the cash market on Tuesday, while domestic funds and institutions sold shares worth ₹604.08 crore.

Despite closing higher for the ninth consecutive day, the market does not exhibit a bullish sentiment, with indices indicating the possibility of consolidation.

Today, the Nifty has support at 24,985 and 24,960, while resistance is expected at 25,060 and 24,085.

Life insurance companies saw good gains yesterday. Medi Assist's acquisition of Paramount TPA led to an 8% rise in its shares. This acquisition is expected to significantly increase Medi Assist’s market share.

Hindustan Unilever fell by 2% after receiving a ₹962 crore tax notice. The issue pertains to taxes related to its acquisition of Horlicks, Boost, and other brands from GlaxoSmithKline. Other FMCG companies, including Marico, ITC, and Dabur, also declined by over 1%.

Gold rises, crude declines

Gold continues to trade at record levels, closing at $2,524.90 per ounce after reaching $2,529 yesterday. It is currently priced at $2,518 this morning. The weakening dollar index is supporting the rise in gold prices, which are expected to increase further.

December futures prices for gold have risen to $2,560 per ounce.

In Kerala, gold prices remain unchanged at ₹53,560 per sovereign. Prices are expected to rise today.

Silver prices, which reached $30 per ounce, have fallen to $29.83.

The dollar index fell to 100.55 on Tuesday and has slightly recovered to 100.61 this morning.

The rupee weakened yesterday, closing 3 paise lower at ₹83.93 against the dollar.

Crude oil prices have declined due to signs of easing tensions in the Middle East. Brent crude fell by 2.5%, closing at $79.55. This morning, prices have recovered slightly to $79.95. WTI crude is at $75.86, while UAE's Murban crude is at $78.68.

Cryptocurrencies declined yesterday, with Bitcoin falling to $59,000 and Ether dropping to $2,440.

Industrial metals are on the rise again, with copper up 1.67% to $9,326.35 per tonne. Aluminium gained 0.29% to reach $2,549.42 per tonne, and other metals also saw significant gains.

Market Indicators (August 27, Tuesday)