A look at cues from market in India and abroad to help you with your trade today.
The market is likely to see a strong start, following strong handover from Wall Street as well as Asian markets. In fact, SGX Nifty trends indicate a gap-up opening for D-Street.
Benchmark indices closed higher for the third consecutive session on Tuesday, backed by a healthy start to September quarter earnings season, rising rupee and falling oil prices.
The 30-share BSE Sensex gained nearly 300 points while the Nifty50 closed 72.30 points higher at 10,584.80 and made a small bullish candle on the daily charts.
"The Nifty50 appears to have made most of the gains in the first one hour of trade before signing off the session with a small bullish candle suggesting a narrow range for the day," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
"Hence, it looks inevitable for the said index to sustain above Tuesday’s low of 10,525 and witness followthrough gains. In such a scenario a higher target between 10,750–10,850 levels can be expected," he said.
Contrary to this if the index slips below Tuesday's low of 10,525 levels then it can come under selling pressure, according to him. He advised traders to trail stop loss level below 10,500 levels on a closing basis and look for higher targets.
Asian markets rise after good Wall Street handover
News agency Reuters reported that Asian equities got some much needed relief on Wednesday after upbeat US earnings reports drove a rebound on Wall Street and helped restore a little confidence in emerging market stocks and currencies.
Japan’s Nikkei leaped out of the gates with an early rise of 1.3 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5 percent and South Korea 1.5 percent.
Good earnings drive Wall Street
US stocks surged more than 2 percent on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off, Reuters reported.
Wall Street’s three major indexes tallied their biggest one-day percentage gains since March. The small-cap Russell 2000 recorded its biggest single-session gain in nearly two years.
Oil prices edge up on surprise drawdown in US crude stockpiles
According to a Reuters report, US oil prices extended gains on Wednesday after industry data showed a surprise decline in US crude inventories. Brent crude LCOc1 was up 36 cents, or 0.4 percent, at $81.77 a barrel, after settling up 63 cents the session before. The global benchmark, which hit a more than two-week low late last week as equity markets dropped, is trading about $5 below a four-year high of $86.74 marked on October 3, 2018.
Nifty futures on the Singaporean exchange are trading strong, gaining almost 100 points. It points to a gap-up opening on the index here as well.
Rupee gains 35 paise
The rupee climbed 35 paise to end at nearly two-week high of 73.48 per dollar on Tuesday amid softening crude oil prices and easing concerns over the trade deficit, PTI reported. Traders said foreign fund inflows and greenback weakening against other currencies were the other factors that provided support to the home unit.
RIL, Mindtree and Havells among 14 BSE companies to declare results
On the earnings front, the big index heavyweight, Reliance Industries, will be declaring its September quarter earnings later in the day. Apart from it, names such as Mindtree, Havells India, DCB Bank, ACC, and NIIT Technologies will also be in focus due to earnings announcements.
Investor wealth soars by Rs 5.30 lakh crore in three days
As the equity market continued its winning run for the third straight session Tuesday, investor wealth soared Rs 5.30 lakh crore in the rally since Friday, according to a PTI report. In the three trading sessions, the BSE benchmark Sensex has gained 428.9 points.
I-T Dept may probe tax evasion through F&O trades
The Income Tax Department may start an investigation against reversal of trade in the equity derivative segment. The department presented its case to the Central Board of Direct Tax (CBDT) last week and sought trade data from the market regulator, Securities and Exchanges Board of India (SEBI).
The move follows reversal of trade in around 14,000 entities in the illiquid derivative segment of the BSE. An official, on condition of anonymity, said the department is inspecting trade reversal on long-dated derivative contract of NSE, which is usually an illiquid or hardly traded contract.
P-note investments hit nine yr low in September
Investments in the Indian capital market through participatory notes (P-notes) hit a nearly nine-and-a-half year low of Rs 79,548 crore till September after registering a rise in such fund infusion in the preceding month, according to a PTI report.
P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through due diligence process.
India Ratings downgrades IL&FS schemesPTI reported that crippled IL&FS group on Tuesday faced more embarrassments after India Ratings downgraded its various mutual fund schemes and placed them on a rating watch negative (RWN). The agency downgraded three series-1, three series- 2 and two series -3 mutual fund schemes of the group "due to the deterioration in the underlying portfolio quality of the schemes due to its exposure to IL&FS group entities".