The benchmark Sensex and Nifty are expected to open moderately higher on November 6, with the GIFT Nifty indicating a 15-point gain for the wider market.
On November 3, the BSE Sensex rose 283 points to 64,364, while the Nifty50 rose 97 points to 19,231, forming the Spinning Top candlestick pattern on the daily charts, showing buyer and seller uncertainty about the future trend.
“The Nifty is expected to trade in the 19,000 to 19,300 range, with a sideways to positive bias.” A definitive breach of the upper range value will carry such gain to 19,500, while a sustained fall below the critical 19,000 level will spark additional selling for 18,800-18,700,” said Arvinder Singh Nanda, senior vice president at Master Capital Services.
The index is presently approaching the resistance zone of many moving averages (20, 100, and 50-day EMAs). “A decisive close above 19,500 is required to negate the bearish tone and inch towards 19,850.” On the downside, the 18,800of19,000 zone would provide support if the slide resumed,” said Ajit Mishra, SVP – Technical Research at Religare Broking.
According to the pivot point calculator, the Nifty may find support at 19,214, followed by 19,199 and 19,174. On the upside, 19,264 may be the first point of resistance, followed by 19,280 and 19,305.
Nifty GIFT
With a rise of 15 points, the GIFT Nifty predicts a somewhat favorable start for the wider market. GIFT Nifty futures were trading at 19,445 points, down from a high of 19,458 points.
The US Markets
On Sunday evening, US stock futures were flat as the main averages completed their greatest week of the year. Dow Jones Industrial Average futures increased 13 points, or 0.04 percent. S&P 500 futures were 0.03 percent higher, while Nasdaq 100 futures were 0.01 percent down.
All of the major averages were coming off their best weeks of the year, a bullish note to start November trading. The Dow Jones Industrial Average closed the week at 34,061.32, up 5.07 percent in its best week since October 2022. The S&P 500 gained 5.85 percent to 4,358.34, while the Nasdaq Composite gained 6.61 percent to 13,478.28. Both indices had their best week since November 2022.
“Oversold conditions, solid earnings, hope for an end to the Federal Reserve’s rate-hiking campaign, and a sizable drop in interest rates have brought buyers back into the market,” said Adam Turnquist, an analyst at LPL Financial.
Markets in Europe
European stock markets finished modestly higher on Friday, capping up a week-long rise fueled by a string of positive profit reports and a perceived dovish lean from central banks. The Stoxx 600 gained 0.2 percent, driven by retail stocks, which gained 1.7 percent. Oil and gas prices fell the most, by 2.2 percent.
The index avoided the 17 percent drop in shipping giant Maersk after it said profits would be at the low end of the forecast and announced 10,000 job layoffs. Siemens Energy finished more than 9% higher after rumors that it is considering selling its interest in India’s Siemens Ltd to bolster its financial sheet.
Asian Economies
Asia’s markets rose on Monday after weak monthly employment data from the United States reduced expectations that the Federal Reserve will continue to raise interest rates. Nonfarm payrolls climbed by 150,000 in October, less than the 170,000 gain predicted by the Dow Jones consensus.
Investors will be watching the final reading on business activity in October from Japan’s au Jibun Bank, which is coming later Monday. After a long weekend, Japan’s Nikkei 225 rose 2% at the outset, while the Topix gained 1.45% to its highest level in almost a month.
South Korea’s Kospi increased by 2.14 percent, while the Kosdaq increased by 3.39 percent. Hong Kong’s Hang Seng index futures were at 17,867, indicating a higher open compared to the HSI’s finish of 17,664.12. The S&P/ASX 200 index in Australia climbed 0.40 percent.
Oil Costs
Oil prices fell more than 2% on Friday as supply fears caused by Middle East tensions eased, while job reports fuelled hopes that the United States Federal Reserve will stop raising interest rates in the world’s largest oil-consuming nation.
Brent oil futures fell $1.92 per barrel, or 2.3 percent, to $84.89 per barrel. West Texas Intermediate oil futures in the United States lost $1.95, or 2.4 percent, to $80.51 a barrel. Both benchmarks fell by more than 6% during the week.
For the first time since the Israel-Hamas war began, Hezbollah leader Sayyed Hassan Nasrallah cautioned on Friday that a larger Middle East battle was likely, but he did not commit to establishing another front on Israel’s border with Lebanon.
“The market appears to be taking this conflict in stride, as it does not appear to be a significant demand or supply disruption event,” said John Kilduff, partner at Again Capital LLC in New York.
The Dollar Index
In futures trading, the Dollar index was 0.06 percent down at 105.07, while the value of one dollar was at Rs 83.16.
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Gold Rates
Gold prices rose on Friday as the US dollar and Treasury yields fell following dismal US employment statistics that confirmed the Federal Reserve’s decision to stop increasing interest rates.
By 3:14 pm ET (1914 GMT), spot gold was up 0.4 percent to $1,994.28 per ounce, having touched a session high of $2,003.69. Gold futures in the United States closed 0.3 percent higher at $1,999.2. In October, employment growth in the United States slowed more than predicted, but pay inflation fell, indicating that labor market conditions are improving. Employers added 150,000 jobs in October, less than the 180,000 projected by experts.
The FIIs and DIIs
On November 3, foreign institutional investors sold shares worth Rs 12.43 crore, while domestic institutional investors purchased equities for Rs 402.69 crore, according to preliminary data from the National Stock Exchange.
