The domestic market main indices are expected to open higher, with the GIFT Nifty up more than 70 points on Nifty Futures from Monday’s close and matching bullish global trends. Asian stock markets dropped slightly overnight, but US stock market indices finished higher.
The Nifty and Sensex closed in the green for the sixth day in a row on Monday, each gaining about 3%. The Nifty reached a new record high of 20,008.15. The Nifty reached an all-time high of 19,991.85 on July 20, this year. As a result, it set a new record in 36 sessions.
The Sensex closed 528.17 points, or 0.79 percent, higher at 67,127.08, while the Nifty gained 176.40 points, or 0.89 percent, to 19,996.35.
Rupak De, Senior Technical analyst at LKP Securities stated, “Bulls continue to lead the way as the benchmark index surged to a historic high, breaching the 20,000 mark for the very first time. This impressive rally followed a breakout from a descending channel that occurred last week.
He also added, “Looking ahead, market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark.”
Here are today’s important worldwide market cues for the Nifty and Sensex:
Also informative: Indian real estate sector likely to expand by $5.8 trillion by 2047.
Asian Economies
Tuesday saw Asian stock markets move sideways as the dollar took a breather, its recent gains being checked by pushback from China and Japan’s central banks, as well as speculators awaiting US inflation data to determine whether or not interest rates have peaked.
After Bank of Japan Governor Kazuo Ueda said that policymakers might have enough economic data by the end of the year to decide whether to raise short-term interest rates, the yen had its best day against the dollar in two months overnight.
As a result of the government’s resolve to correcting one-way transactions, the yuan had its best day in six months.
Japanese government bonds were under pressure again on Tuesday, with 10-year JGB rates increasing 1 basis point to a fresh high of 0.71%. The largest MSCI Asia-Pacific index outside of Japan remained unchanged.
The Nikkei in Japan rose 0.3% as investors awaited US inflation data and the European Central Bank’s meeting this week to determine interest rate expectations and attitude.
Wall street
On Monday, US stocks closed higher on Wall Street, but the dollar fell. As investors awaited Wednesday’s inflation report, the Bank of Japan signaled that the period of negative interest rates may be coming to an end.
The tech-heavy Nasdaq led the US equities jump with a 1.1% gain, with electric vehicle manufacturer Tesla Inc. and online retailer Amazon.com providing the biggest boost to the upswing.
The Dow and S&P 500 both rose 0.3% and 0.7%, respectively. The relatively calm session in US economic statistics this week appeared to be the calm before the storm, with Wednesday’s critical consumer prices report (CPI) taking center stage.
The Nasdaq Composite rose 156.37 points, or 1.14%, to 13,917.89, while the S&P 500 advanced 30.01 points, or 0.67%. The Dow Jones Industrial Average rose 87.32 points, or 0.25 percent, to 34,663.91.
The rate on US Treasury bonds increased ahead of the CPI data.
Tesla stock rises as Morgan Stanley forecasts a $600 billion value increase from Dojo.
Tesla stock jumped when Morgan Stanley analysts boosted the firm on Monday, highlighting the potential of the supercomputer that Tesla is creating.
According to Mogan Stanley, Tesla’s Dojo supercomputer will raise the company’s worth by roughly $600 billion by accelerating the use of robotaxis and network services.
Morgan Stanley analysts boosted their price target for Tesla shares from $250 to $400, a 60% increase, and recommended that investors upgrade to a “overweight” position. The stock recently gained more than 9%, surpassing the S&P 500.
Based on the stock’s close price of $248.5 on Friday, that is over 76% more than Tesla’s market capitalization of $789 billion. On Monday, the shares rose over 5.7% to $262.70.
KKR is planning to invest in Reliance Retail.
Reliance Retail Ventures Ltd, a retail subsidiary of Reliance Industries, stated on Monday that global investment company KKR will invest $2,069.50 crore in RRVL, a subsidiary of Reliance Industries Limited, through an associate. This investment places RRVL at a pre-money equity value of 8.361 lakh crore, ranking it among the top four corporations in the country by equity value.
Reliance Industries will be the focus of attention today as a result of this development.
Buyback of Larsen & Toubro (L&T) shares
L&T raised its offer price for its projected future 10,000 crore share buyback from 3,000 to 3,200 per share on Monday evening, after the stock rose and the premium to market price reduced since the original announcement in July. L&T announced the buyback on July 26th, the first such offer in the company’s eight-decade history. L&T previously stated that it may propose to buy back a 2.4% interest, or 33.33 million shares, held by public shareholders through a stock exchange book-building procedure.
Crude oil
Brent oil futures traded just above $90 per barrel on Tuesday, as investors awaited a flood of macroeconomic data due later this week, which could indicate whether Europe and the US will continue to boost interest rates.
Brent crude prices were down 6 cents at $90.58 a barrel at 00:03 GMT, while West Texas Intermediate crude futures were down 2 cents at $87.27.
Last week, benchmark Brent crude traded at $90 per barrel after Saudi Arabia and Russia said that they will extend their voluntary production cut of 1.3 million barrels per day until the end of the year.
GIFT Nifty
GIFT The Nifty surged, trading more than 70 points higher than the Nifty Futures close on Monday. According to observers, the 19807 level will be the Nifty’s strongest support for Tuesday’s session.
As long as the Nifty remains above 19807, the technical picture remains bullish. Technically, the Nifty’s psychological 20,500 level is considered as an immediate aggressive bullish goal. The 200 DMA of the Nifty is at 18417.
Markets in Europe
On Monday, European stock markets finished higher as traders braced themselves for a hectic week of global economic data releases.
The Stoxx 600 index gained 0.3% in the end, reversing earlier advances of up to 0.9%. On Friday, the Stoxx 600 ended its biggest losing streak since February 2018. The trend had been in place for seven sessions.
