Share Market Today - 8th May 2019

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MARKET RECAP

                                                             
Key Market Data Points
Key Market Data Points 8th May 2019

The domestic markets maintained its downside momentum during yesterday’s session along with high volatility. Although the benchmark indices started the session on a positive note but selling pressure during the second half forced them to close with considerable loss. The index Nifty spot registered an intraday high of 11657 and closed way below the same i.e. it closed below 11500 mark. Meanwhile the Nifty Bank index too lost more than 400 points from previous close.

The positive market breadth turned in the favour of declining counters as the day progressed which indicates broad based selling. On the sectoral front, apart from NIFTY IT (+0.15%) all the other group indices close in negative terrain. With regards to losers, NIFTY MEDIA (-2.74%) and NIFTY PSUBANK (-2.20%) stocks remained under pressure. From the F&O space, STAR (+7.38%), MARICO (+5.70%) and HEXAWARE (+1.94%) were the biggest performers.


MARKET OUTLOOK

NIFTY Chart:
NIFTY Chart 8th May 2019

Finally the range of 11550 – 11800 has been breached decisively. We expected the index to hold the support of 11550 but yesterday it not only sneaked below the support but closed with more weakness. Now going ahead, till the time Nifty trades below 11650 traders should avoid any aggressive long bet. On the downside, next supports are placed at 11450 – 11420 levels.

In case of any pullback, 11580 might act as strong resistance in the coming session. Overall, we expect the markets to turn more volatile in the coming weeks due to election results and hence advice traders to avoid over leveraged positions.

 


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Share Market Today - 7th May 2019

MARKET RECAP                                                                  Key Market Data Points The week kicked off on an extreme pessimistic note for the domestic markets following the plunge in Asian indices. The Asian markets corrected sharply on fears that the trade negotiations between the U.S. and China were on the verge of failure. The index Nifty spot started the session with a downside gap of around 100 odd points and remained under pressure throughout the session. Eventually, it closed below 11600 mark. Meanwhile the Nifty Bank index too lost more than 300 points from previous close. The market breadth remained in the favour of declining counters due to broad based selling. On the sectoral front, apart from NIFTY IT (+0.11%) all the other group indices close in negative terrain. With regards to losers, NIFTY MEDIA (-2.18%) and NIFTY METAL (-2.03%) stocks remained under pressure. From the F&O space, PCJEWELLER (+13.97%), TATACHEM (+8.06%) and RAYMOND (+4.92%) were the biggest performers. MARKET OUTLOOK NIFTY Chart The given daily chart of Nifty spot indicates that the index is trading near the lower end of the range 11550 – 11800. Hence for further downside Nifty needs to clear 11550 mark decisively. In such scenario, Nifty might slide towards 11450 mark. On the upside, the intermediate resistance is placed at 11630. A move above the same might bring the bulls back in action. Overall, we expect the markets to turn more volatile in the coming weeks due to election results and hence advice traders to avoid over leveraged positions.Disclaimer)

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Daily Commodity Research Report – 7th May 2019

BULLION Gold prices up after WGS report as central bank raise stake by 68% in Q1. Trend volatile.Review Yesterday, both the precious metals were trades mixed in international markets. Gold settled at $1283.80 per troy ounce up by 0.20% while silver settled at $14.92 per troy ounce down by 0.40%. Domestic markets were also settled mixed. Gold settled at Rs.31563 per 10 gram with the gain of 0.37% and MCX Silver settled at 37376 per 1 kilogram with the loss of 0.04%. Gold prices get support after world gold council report. According to the World Gold Council, net buying by central banks reached 145.5 tons in the first quarter of 2019. That’s a 68% increase over last year. And it’s the most gold central banks have bought in the first quarter since 2013. Russia and China led the buying spree, with Russia snapping up 55.3 tons and China purchasing 33 tons. Monthly purchases from the People’s Bank of China have averaged 11 tons over the past four months. Other notable buyers include Turkey (40 tons), Kazakhstan (11.2 tons), Qatar (9.4 tons) and India (8.4 tons). We expect buying of central banks will support gold prices in international markets and it will hold key support of $1266. Gold is having support at $1276-1266 and resistance at $1288-1292. Silver is having support at $14.76-14.60 while resistance at $15.10-15.24. TECHNICAL OUTLOOK Today, Gold is having support at 31472-31382 while resistance at 31652-31740, silver is having support at 37146-36915 and resistance at 37512-37647. Traders are suggested to trade in a range with strict stop loss. ENERGY Crude oil price gain after a report as Iran strikes U.S. in gulf. Trend volatile. Review Yesterday, Crude oil prices rebound in international market WTI Crude settled at $62.25 while Brent settled at $71.24 per barrel. At MCX Crude oil settled positive at 4369 per barrel with the gain of 0.92%. We have seen extreme volatile session yesterday as crude oil prices tumbled after a Sunday’s twit of U.S. President Donald Trump for increasing tariffs on $200 billion Chinese imports and it looks trade negotiations between two countries are not in right direction. But Crude oil prices gain momentum in afternoon trade as tension increase in gulf. Oil prices went from 2% down to settling up on Monday after Axios quoted Israel's Channel 13 diplomatic correspondent Barak Ravid as saying that Israel has passed information to the U.S. about an alleged Iranian plot to attack U.S. interests in the Persian Gulf. This was before (U.S.) national security adviser John Bolton threatened Iran with 'unrelenting force' last night, senior Israeli officials told me, Ravid said in the report carried by Axios.com. We expect crude oil prices remain volatile. Crude oil is having support at $61.50-60.80 and resistance at $62.60-63.20. TECHNICAL OUTLOOK Crude oil is having support at 4262-4155 while resistance at 4429-4489, trades are suggested to trade in a range with strict stop loss. BASE METALBase metals show volatility after President Donald Trump remark on tariff. Trend volatile. ReviewYesterday, base metal prices settled mixed in international market. 3M LME copper settled at $6241 per metric ton unchanged from previous close as LME were closed yesterday. Base metal prices shows volatility in yesterday’s trading session after President Donald Trump remark on tariff as U.S. will increase tariff on $200 billion Chinese imports from Friday. Market shows weakness in early trade but prices get support in domestic markets as rupee get weaker against dollar. Prices also get support as statement came from China as Chinese trade delegation will visit U.S. and will negotiate trade deals and will come out with statements after meeting with U.S. trade officials. We expect today market will remain volatile as LME will open after three days holiday and volatility in dollar index. Today, Copper is having support around 432-426 while resistance at 441-445. Nickel will trade in a range of 828-858, Zinc will trade in a range of 216-223, and Lead will trade in a range of 128-134 while Aluminium trade in a range of 142-148. TECHNICAL OUTLOOK Copper is having support at 432 and 426 while resistance at 441 and 445, traders are suggested to trade as per levels with strict stop loss. AGRI COMMODITYWeakness in rupee supports agriculture commodities in domestic markets. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3634 per quintal with the gain of 0.78%. CBOT were settled at 826. Agriculture commodities opened on weaker note after weakness in global markets but in domestic market prices get support at lower levels due to weakness in rupee. Soybean unable to close below 3580 and get support and shows strength again. Mustard also get support at lower levels as crushers are hopeful as crushing activity will increase as prices are lower this year. We expect due to volatility in global markets and movement in dollar will impact domestic agriculture commodities and market remain volatile. Agriculture commodities shows strength at NCDEX, Chana settled with the gain of 0.79%, Castor seed settled positive with the gain of 0.93%. RM Seed closed positive with the gain of 0.83%. Guar Seed settled positive with the gain of 1.66% while Guar Gum settled with the gain of 1.49%. Spices pack settled mixed Coriander and Turmeric settled weak while Jeera settled positive. Cotton seed oilcake closed positive with the gain of 1.72%. Refined Soyoil closed negative with the loss of 0.60%. We expect Refined Soyoil to trade in a range of 724-740.TECHNICAL OUTLOOK Soybean is having support around 3600-3580 while resistance at 3660-3680, Refined Soyaoil is having support at 727-724 while resistance at 737-740 traders are suggested to trade as per levels with strict stop loss. News Source: Bloomberg, investing.com, kitco.com and ticker news.   Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)

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