Business & Finance

Market Change Overnight - Know The 8 Things That Did It

As per happenings on Monday, it is expected that the domestic market would open higher with GIFT Nifty. The opening would be higher than 70 points. The US stock market indices closed higher at night while Asian stock markets smoothly went sideways.

On Monday, both Sensex and Nifty had a gain of around 3% and remained green for six days in a row. Nifty broke its previous record of all-time high (19, 991.85 on 20 July 2023) by touching a new record high of 20, 008.15 level. Nifty got this new record in just 36 sessions. On the other hand, Sensex had a higher of 67, 127.08 with a closing point of 528.17 or 0.79 % . Nifty had a gain of 176.40 points or 0.89% at 19, 996.35.

Rupak De, senior technical analyst at LKP Securities, said to reporters of various media houses, “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. 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 the 8 things/global market cues that changed market overnight and hint record opening on Tuesday:

1. GIFT Nifty

GIFT Nifty experienced a significant trading increase on Monday. Its closing points were more than 70 that was above the closing points of Nifty Futures. Share market experts stated that the opening points of 19, 807 will be the biggest support for Nifty on Tuesday. As Nifty trades above the 19 807 mark, the technical landscape will be more positive for Nifty. Technically instant aggressive bullish targets will help Nifty go above 20 500 mark on Tuesday and its 200 DMA at 18417.

2. Asian Markets

In early hours on Tuesday, Asian stock markets went in a slight sideways movement. It happened due to the steps the Central Banks of Japan and China are taking somes steps to push back the US dollar and speculation of US inflation data about the peak of interest rates.

Kazuo Ueda, Bank of Japan Governor, advised policymakers to have abundant economic data by the end of the current year. This data will facilitate deciding whether short-term rates need to increase or not. This suggestion helped the yuan, Japanese currency, experience well against the dollar. The government’s effort to correct one-way transactions facilitated the yuan at its best constantly in the last six days.  

3. European Markets

The traders’ anticipation of a busy week of world economic data releases helped European stock markets had a higher closing on Monday. There was an increase of 0.3% in the benchmark Stoxx 600 index at the end. It caused a reverse in early gains of 0.9%. Since February 2018 Friday, the Stoxx broke its own losing streak. This trend ran for 7 day sessions.

4. Wall Street

There was a decline in the dollar and an increase in US stocks on Monday. Investor anticipation for inflation on Wednesday and the steps being taken by the Bank of Japan paved the way for the ending of negative interest rates. With a 1.1% increase, the tech-heavy Nasdaq helped a surge in the US equity while Tesla, electric vehicle manufacturer, and Amazon.com, an online retailer, are paving the way for the biggest lift.  

Both the S&P 500 and the Dow saw an increase of 0.7% and 0.3% respectively. As per the US economic data this week, the relatively tranquil session was almost calm before the storm. Further, Wednesday’s CPI (Crucial consumer prices report) is getting in the focal point. The Nasdaq Composite experienced a 1.14% increase with closing 13 917.89 points while The S&P 500 experienced only a jum of 30.01 points or 0.67%. The Dow Jones Industrial also witnessed an increase of 87.32 points and ended at 34 663.91.    

5. KKR’s Announcement About Investment in Reliance Retail

Retail subsidiary of Reliance Industries, Reliance Retail Ventures Ltd (RRVL) made it public on Monday that KKR, a global investment firm, is going to invest INR 2 069.50 crore in RRVL through an affiliate program. With this investment, the RRVL will be in the top four companies in India in terms of equity value. This can make Reliance Industries remain in focus on Tuesday.

6. A Jump in Tesla shares

Morgan Stanley analysts cited that Tesla is engaged in building the supercomputer. It helped the company experience an increase in its share prices on Monday. According to Morgan Stanley’s prediction, the supercomputer, Dojo, that Tesla is developing will increase the company’s value. The value amount will be around $600 billion caused by the adoption of network services and robotaxis.

After prediction, Tesla’s share price had a 60% increase. One share cost only $250, but it raised to $400 after Morgan Stanley’s prediction. On Friday, Tesla’s share had a closing price of $248.5. The stock had a 5.7% increase on Monday.

7. L&T Buyback

On Monday evening, L&T raised its offer price from INR 3000 a share to INR 3200 per share. The company did it for its proposed share buyback of INR 10 000 Crore as the narrowing of premium price and the stock alliance. It was the 26th of July 2023 when the company announced its buyback. The offer is the first of its kind in around 80 years. As per the announcement, the company could buy a share of 2.4% stake or 33.33 million shares.

8. Crude Oil

On Tuesday morning, Brent oil futures trading was slightly above 90 US dollars a barrel. Investors are eagerly waiting for microeconomic data release that could make it clear whether the US and Europe keep their interest rates going or not. The global benchmark Brent contract was down 6 cents at 00:03 GMT. West Texas Intermediate crude futures were at $ 87.27, 2 cents down.

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