Where is the market headed?
The global financial landscape continues to face significant turmoil with no immediate signs of relief. U.S. markets experienced a dramatic fall yesterday, while yields in both the U.S. and Japan are on the rise. There is a growing fear regarding the potential sell-off of U.S. Treasuries by European institutions.
In an unexpected turn of events, gold and silver are making moves that few anticipated, with gold ETFs rising almost 7% today. This surge accompanies a deeper story that warrants close attention.
The current market data reveals a striking abnormality in gold pricing. While gold prices typically track calculated global benchmarks, the MCX futures and gold ETFs in India have suddenly shot up, creating a gap of 5% to 10% over the last two days. This suggests that the market may be front-running a potential increase in gold import duties in the upcoming Union Budget.
Market Overview
Turning to the domestic equity markets, the Nifty remains highly volatile, ending the day on a flattish note with a minor dip of 0.3%. Despite a “dead cat bounce” during the day, the market remains oversold, having dropped from 26,400 to 25,100 in just a few days.
Nifty Next 50
The Nifty Junior formed a Doji candle, where the opening and closing prices were the same, offering a small glimmer of hope for a bounce tomorrow. However, the technical charts are damaged, and most trends have turned negative.
Nifty Mid and Small Cap
Mid-caps fell 1.01% without showing any signs of a positive reversal, and Small-caps declined by 0.7%.
Bank Nifty
The Nifty Bank also dropped 1.02%, leaving only the long-term trend in positive territory as market sentiment appears thoroughly crushed.
GOLD
In the commodities space, gold is technically up another 2.77% at 15,191, but prices on the MCX and Gold BeES are trading much further ahead. The far-month contracts for gold have even reached 1,60,000, with short, medium, and long-term trends currently appearing very positive.
SILVER
Silver is also inching higher, up 1.33% at 297,361.
Advance Decline Ratio
The advance-decline ratio for the day remained flat, with both advances and declines hovering around the 184 to 316 range.
Heat Maps
Individual stock performance was mixed. Major players like ICICI Bank, HDFC Bank, Coal India, BEL, and Nestle lost ground. On the positive side, Reliance, Zomato, UltraTech Cement, and JSW Steel saw gains. Other gainers included Mother Son, Siemens, Adani Enterprises, Naukri, and DLF.
Mover Of The Day
However, the “mover of the day” was Kalyan Jewellers, which collapsed 12.1%, marking its eighth consecutive day of losses. Jewelers are reporting a significant drop in footfalls and business as rising prices deter consumers.
Sectoral Overview
Sectoral trends showed capital markets leading the decline with a 1.88% drop, followed by defense stocks down 1.2% and banks down 1%. The only sectors to see gains were metals, tourism, oil and gas, infrastructure, and commodities.
Sector of the Day
Nifty Capital Market Index
Major financial entities like UTI Asset Management, Nuvama, Motilal Oswal, and Angel One all lost between 3% and 4%.
U.S. Market
The weakness extends to the U.S. markets, where the NASDAQ, Dow Jones, and Russell 2000 all fell by 2% in the previous session. Significant losses were seen in 3M, Oracle, Broadcom, Accenture, and IBM, with drops ranging from 4% to 6%.
The NASDAQ 100 heat map was predominantly red, with heavyweights like Nvidia, Apple, Google, Microsoft, Amazon, Tesla, and Meta all moving down significantly.
Tweet Of The Day
In the cryptocurrency space, Bitcoin has broken down from its flag formation, dropping from 128,000 to approximately 80,000. Unless previous highs are reclaimed, the technical chart suggests a potential further slide toward the 40,000 level. This indicates a very poor outlook for the crypto world currently.
