Wall Street gained some confidence to snap the negative trend as the BoE announced it was temporarily buying up long-dated UK government bonds “to restore orderly market conditions” following a historic slump in the pound. Asian markets also opened in the green in the morning.
Cryptocurrency prices today gain as Bitcoin, ether surge over 5%. Check latest rates
Cryptocurrency prices today rebounded with Bitcoin, the world’s largest and most popular cryptocurrency, trading more than 5% higher at $19,427. The global crypto market cap today remained below the $1 trillion mark, even as it was up over 2% in the last 24 hours at $984 billion, as per CoinGecko. (Full Story)
Sensex adds 500 points at open and Nifty 130 points to start on a bright note
Geojit Financial Services views on today’s Nifty, Derivative and Rupee
Anand James – chief market strategist at Geojit Financial Services
With 16860 encouraging bulls to regroup on anticipated lines, the play today would be to see how far Nifty could stretch on the bounce. The 17170 region is a natural resistance. We expect this to be overcome, but fear that long liquidation pressure will re-emerge much before 17350 is achieved. As maintained earlier, rejection trades would rekindle prospects of 16650-16300.
Nifty weekly contract has highest open interest at 17000 for Calls and 16000 for Puts while monthly contracts have highest open interest at 17000 for Calls and 16800 for Puts. Highest new OI addition was seen at 17000 for Calls and 16000 for Puts in weekly and at 17000 for Calls and 16700 for Puts in monthly contracts. FIIs increased their future index long position holdings by 64.12%, increased future index shorts by 16.54% and index options by 9.26% in Call longs, 12.57% in Call short, -1.33% in Put longs and 14.50% in Put shorts.
The sharp pull back after playing around in the 82 vicinity hints at bullish exhaustion. Inability to pull back above 81.6 would confirm a drop extending as far as 80.95. Alternatively, expect sideways moves while above 81.6.
China’s Yuan gains first time in nine days after verbal support
China’s onshore yuan advanced for the first time in nine sessions, after the central bank issued a verbal warning against currency speculation.
The currency advanced 0.3%, halting an eight-session slide around 3%. The gains came after the People’s Bank of China late on Wednesday issued a strongly-worded statement saying that speculators will definitely lose money in the long term and key market participants need to “protect the authority of the fixing.” It also set the fix at a stronger-than-expected level for the 26th straight session. (Full Story)
Sensex preopens in green; Vodafone Idea, Hindustan Copper, IDBI in focus
Reliance Securities Stock to Focus today: Crompton Greaves
STOCK IN FOCUS
Crompton Greaves (CMP Rs.407)
We have a BUY rating, with a Target Price of Rs475.
UBL (PREVIOUS CLOSE: 1,687) BUY
For today’s trade, long position can be initiated in the range of Rs1,676- 1,665 for the target of Rs1,750 with a strict stop loss of Rs1,643.
BIOCON (PREVIOUS CLOSE: 284) BUY
For today’s trade, long position can be initiated in the range of Rs281- 279 for the target of Rs292 with a strict stop loss of Rs276.
UPL (PREVIOUS CLOSE: 664) SELL
For today’s trade, short position can be initiated in the range of Rs669- 673 for the target of Rs646 with a strict stop loss of Rs682.
Stocks to Watch: Vodafone Idea, Hindustan Copper, PNB, IDBI, Ambuja Cements, Hindustan Motors, Edelweiss Financial, UCO Bank, Bharti Airtel, Sangam Ltd
Vodafone Idea will be the only stock to be under the F&O ban list for Thursday. This stock will be under the ban for the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
INDIA BONDS-Bond yields may open down tracking fall in U.S. peers; RBI policy watched
Indian government bond yields are expected to open lower on Thursday, tracking a sharp decline in U.S. yields, although sentiment is expected to remain cautious ahead of the Reserve Bank of India’s policy decision that is due on Friday.
The benchmark Indian 10-year government bond yield is seen in a 7.24%-7.29% band, a trader with a private bank said. The yield ended at 7.3340% on Wednesday.
“U.S. yields have sharply corrected within a day, after seeing nearly 10 basis points rise daily since the last few days, and this should result in a gap-down opening for local bond yields,” the trader said.
“Still, after some reaction at open, yields may be range-bound ahead of (the) all-important monetary policy decision.” (Reuters)
Hindustan Copper shareholders approve 23.2% dividend for FY22
Shareholders of state-owned Hindustan Copper Ltd (HCL) on Wednesday approved a 23.2% dividend for the financial year ended in March 2022.
The company would make a total dividend payout of ₹112.17 crore as approved in the 55th Annual General Meeting, HCL said in a statement.
During the meeting, HCL Arun Kumar Shukla said the production from the company’s flagship project, Malanjkhand underground mine, has commenced.
He also informed that the company has repaid a loan of ₹729 crore in FY2021-22 from its internal accruals.
As the global economy moves toward net zero carbon emissions through the energy transition, the role of copper remains pivotal as the most efficient conductive material, indispensable for capturing, storing and transporting green energy, he said. (PTI)
Market wrap for Wednesday: Views by Geojit Financial, Kotak Securities, LKP Securities and Angel One
Vinod Nair, head of research at Geojit Financial Services: Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens. Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession. Domestic investors are turning to IT and pharma companies, which have been in a consolidation phase for the past year and are now gaining from the INR depreciation. The RBI policy meeting is currently underway, and the central bank is likely to raise repo rates by 35-50 basis points, however, the inflation outlook may soften in reaction to declining commodity prices.
Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd: Markets remained choppy with a sharply downward bias, as investors exited banking and metal stocks ahead of the monthly F&O expiry with the likely rate hike by the RBI & other central banks indicating that bearish sentiment could continue going ahead. Technically, we are of the view that 17000 would act as an immediate resistance level. Below which, the correction wave is likely to continue till 16700-16650. On the flip side, a short recovery rally is possible only after the dismissal of 17000. Above the same the index could move up to 17100-17200. The Nifty is having major support between 16700-16650 (which is important retracement support level). Buying is advisable in index heavyweight stocks if Nifty falls to 16700 levels.
Rupak De, senior technical analyst at LKP Securities: Nifty ended in the red after a volatile trading session. The index closed below 200 DMA for the first time after several days. The momentum oscillator RSI is in a bearish crossover. On the daily chart, the index has made a low around the historical swing high. The trend is likely to remain weak as long as it remains below 17000. On the lower end, 16800-16830 will likely remain supported. On the higher end, resistance is visible at 17000.
Osho Krishan, sr. analyst – technical & derivative research, Angel One Ltd: Technically, the positive structure has been shaken a bit as the psychological support of 17000 got breached decisively. Also, the closure below the 200-day SMA has dampened the overall sentiments, implying weakness in the comparable period. However, the formation of the ‘Inverted Hammer’ candle on the technical chart could be seen as a ray of hope for a reversal from the ongoing selling saga. As far as levels are concerned, the unfilled gap of 16750-16650 is to be seen as the next potential support. While on the higher end, the 17000-mark followed by 17200 is likely to be seen as immediate resistance for the index.
Since the market is extremely oversold, one needs to keep a cautious view and avoid undue risk during the monthly expiry session. Meanwhile, a close tab should be kept on global developments, which may lead to an immediate trend setup, and it is advisable to be very selective in finding trading opportunities.