With favorable global cues and a rise of over 70 points in benchmark indexes serving as gift benchmarks for the Nifty, there is optimism for a gain of more than 70 points in local markets from Monday’s closing. For the sixth day running, the Nifty and the Sensex both closed on Monday with gains of around 3% each. The Nifty reached a fresh high of 20,081.15 points. The Nifty’s previous record high was 19,991.85, which was attained on July 20 of this year. As a result, it broke a record in 36 sessions.
The Nifty closed at 19,996.35, up 176.40 points or 0.89%, while the Sensex closed at 67,127.08, up 0.79% or 528.17 points.
“The benchmark index has surpassed 20,000 points for the first time and hit a record high. This strong rally came after last week’s escape from a downward channel. The market’s prognosis is anticipated to improve in the future. Stay positive as long as the Nifty remains above the 19,900 level. On the upside, a zone of immediate resistance between 20,100 and 20,200 can be seen. The Nifty may experience additional gains if there is a strong breakout over 20,200, according to a senior technical analyst at LKP Securities.
Chinese markets
Tuesday’s Asian stock markets experienced only minor fluctuations as the dollar took a break in anticipation of the release of extensive economic data for Europe and the US. Speculators were also anticipating the US monetary tightening as signaled by the central banks of China and Japan, ending their wait for the American currency to depreciate.
As the yen experienced its best two months vs the dollar in over a year, Bank of Japan Governor Kajuo Ueda hinted that policymakers may have enough economic data by the end of the year to assess whether short-term rates need to be raised.
The yen has gained value during the previous six months as a result of efforts to reverse one-way bets on the currency. The yen has performed best in the past two months since the financial crisis of 2008.
On Tuesday, Japanese government bonds also increased in value. The 10-year JGB rates hit a fresh high of 0.71%. The MSCI index of shares outside of Japan from Asia-Pacific was unchanged. As markets anticipated the European Central Bank meeting later this week, which would offer more information about US monetary data and interest rate forecasts, the Nikkei gained 0.3% in Japan.
Market Street
On Monday, the dollar fell while US stocks ended the day higher. The currency’s relief had been anticipated by investors, who also thought that the Bank of Japan may move through with plans to end the era of negative interest rates.
With a gain of 1.1%, the tech-heavy Nasdaq took the lead in the equities rally, with electric vehicle maker Tesla Inc. and online retailer Amazon.com giving the quick growth the biggest boost.
The gains for the Dow and S&P 500 were 0.3% and 0.7%, respectively. With the eagerly awaited Consumer Price Index (CPI) report set for Wednesday, last week’s relatively quiet session in terms of US economic data resembled the calm before the storm.
The S&P 500 gained 30.01 points or 0.67%, while the Nasdaq Composite increased by 156.37 points or 1.14% to reach 13,917.89. To achieve 34,663.91, the Dow Jones Industrial Average increased by 87.32 points, or 0.25 percent.
Due to Morgan Stanley’s Prediction, Tesla Stock Rose
Following Tesla’s revelation of the capabilities of its Dojo supercomputer, Morgan Stanley analysts upgraded the firm, and the stock of the company increased on Monday. The quick adoption of robotics and network services by the corporation, according to Morgan Stanley, may increase the market value of Tesla’s stock by about $600 billion.
Due to Tesla’s anticipated capabilities with the Dojo supercomputer, analysts at Morgan Stanley advised investors to “upgrade in a more weighted position” in the stock. Tesla’s shares recently increased by more than 9%, outperforming the S&P 500.
At its closing price of $248.5 on Friday, Tesla had a market capitalization of almost $789 billion, which is roughly 76% higher than the price of the stock. On Monday, it increased by nearly 5.7% to $262.70.
Reliance Retail to put money into KKR
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, declared on Monday that it will make a subsidiary investment of 2,069.50 crore in the international investment company KKR. According to RRVL’s pre-money equity value, this investment is worth 8.361 lakh crore, ranking RRVL as one of the top four corporations in the nation in terms of equity value.
L&T Announces Buyback
As the stock rose and the premium over the market price shrank since the announcement in July, Larsen & Toubro (L&T) boosted its offer price for the projected 10,000 crore share buyback on Monday evening, increasing it from 3,000 per share to 3,200 per share. The buyback, the company’s first of its kind in nearly eight decades, was announced by L&T on July 26. L&T stated that it could propose to repurchase 33.33 million shares, or 2.4% of its share capital, through a book-building procedure on a stock exchange.
Cripple Oil
Investors were anticipating a plethora of economic data that will be presented later this week, so Brent crude oil prices were marginally higher on Tuesday than they were at the close on Monday. This information may reveal if interest rates in Europe and America will rise further.
West Texas Intermediate (WTI) oil price was down 2 cents to $87.27 per barrel as of 00:03 GMT, while the benchmark Brent contract was trading 6 cents higher at $90.58 per barrel.
After Saudi Arabia and Russia stated last week that they will increase their voluntary production restrictions by 1.3 million barrels per day until the end of the year, the price of Brent crude oil soared to $90 per barrel.
Nifty Gifts
Gift Nifty experienced a spike, closing Monday’s trading more than 70 points higher than Nifty futures. The Nifty is anticipated to find its strongest support on Tuesday in the area of 19,807 points, according to analysts.
The technical picture is still favorable as long as the Nifty is above 19,807 points. Technically, 20,500 points is considered to be the Nifty’s psychological target. The 200 DMA of the Nifty is at 18,417 points.
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European Economies
The European stock markets ended the day Monday higher as investors awaited the publication of a large amount of economic data for the world economy. At the close, the benchmark Stoxx 600 index increased 0.3%, erasing its 0.9% decline from the previous session. The Stoxx 600’s seven-session losing streak, which had been its longest since February 2018, came to an end.