1 MAJOR GLOBAL INDICES Indian shares ticked higher on Thursday, as coronavirus cases in the world's second-most populous nation neared 1 million, while an upbeat earnings by Infosys Ltd lifted IT stocks and capped losses. Shares of bellwether Infosys Ltd surged over 9% after it reported a better- than-expected first quarter profit on Wednesday evening and reinstated its full-year revenue growth guidance. Nifty IT index was up nearly 4% in early trade. The pandemic has de- pressed domestic demand, with India reporting a trade surplus for the first time in over 18 years for June, as imports of crude oil, gold and other industrial products plunged, reflecting a slowing economy. Top Headlines Reliance's stake sale talks with Aramco stall over price, sources say Oil prices ease after OPEC+ agrees to ease output curbs Gold dips on firm dollar, stays above $1,800 on virus fears Dollar climbs as traders focus on weak Chinese retail sales MARKET RADAR 17 JULY 2020 IT stocks lift Nifty as virus cases near a million BOND YIELDS Index Last High Low Chg. Niſty 50 10,739.95 10,755.30 10,595.20 121.75 BSE Sensex 36,471.68 36,524.62 36,038.41 419.87 Dow 30 26,819.64 26,832.11 26,660.03 -50.46 S&P 500 3,209.37 3,212.08 3,199.09 -17.19 Nasdaq 10,418.30 10,466.82 10,386.96 -132.19 DAX 12,884.15 12,912.55 12,797.82 -46.83 FTSE 100 6,267.07 6,282.67 6,225.85 -25.58 CAC 40 5,095.40 5,103.39 5,048.32 -13.58 Nikkei 225 22,770.36 22,925.90 22,739.42 -175.14 Shanghai 3,210.10 3,373.53 3,209.73 -151.21 Hang Seng 24,970.69 25,576.49 24,919.95 -510.89 KOSPI 2,183.76 2,207.34 2,177.82 -18.12 IDX Composite 5,098.37 5,107.26 5,075.83 22.58 Maturity Yield Change India 3M 3.240 0.010 India 6M 3.350 -0.040 India 1Y 3.588 -0.037 India 2Y 4.164 0.006 India 3Y 4.350 0.023 India 4Y 4.697 0.007 India 5Y 4.885 0.004 India 6Y 5.327 0.005 India 7Y 5.625 -0.009 India 8Y 5.815 -0.012 India 9Y 5.884 -0.015 India 10Y 5.813 -0.003 India 15Y 6.322 -0.005 India 30Y 6.417 0.009
Transcript
1
M A J O R G L O B A L I N D I C E S
Indian shares ticked higher on Thursday, as coronavirus cases in the world's second-most
populous nation neared 1 million, while an upbeat earnings by Infosys Ltd lifted IT stocks
and capped losses. Shares of bellwether Infosys Ltd surged over 9% after it reported a better-
than-expected first quarter profit on Wednesday evening and reinstated its full-year revenue
growth guidance. Nifty IT index was up nearly 4% in early trade. The pandemic has de-
pressed domestic demand, with India reporting a trade surplus for the first time in over 18
years for June, as imports of crude oil, gold and other industrial products plunged, reflecting
a slowing economy.
Top Headlines
Reliance's stake sale talks with Aramco stall over price, sources say
Oil prices ease after OPEC+ agrees to ease output curbs
Gold dips on firm dollar, stays above $1,800 on virus fears
Dollar climbs as traders focus on weak Chinese retail sales
MARKET RADAR 17 JULY 2020
IT stocks lift Nifty as virus cases near a million
Nifty edged higher in yesterday's trade with the index gaining around 120 odd points over previous close. The index gapped open higher near 10700 levels but fell back immediately, covering the
gap. The index consolidated later on with marginal upward bias before wit-nessing a minor surge towards the close taking the index beyond the day's open-ing levels as well as previous day's opening levels. The technical picture, in spite of the higher close, remains incon-clusive for most part with some marginal
bullish bias. As has been iterated in this space, only a close beyond 11000 -10300 levels can there be certainty in direction. For the day traders can ex-pect some marginal upside movement, though it is advisable to trade with less leverage and prefer spread strat-egies with proper hedge.
Bank Nifty more or less mirrored the benchmark Nifty in yesterday's trade with the index closing on a positive
but indecisive note. The banking in-dex opened on a marginally positive note but maintained a lower stance initially, almost testing 21000 levels, which are strong supports for the in-dex. The index witnessed sideways price action thereafter before surging higher in the later half of the day and
closing in the green. The technical picture remains indecisive for now with yesterday's price action more
corrective in nature for now. The pullback was on cards since intraday charts were oversold. Thus we cannot read much into the move and only a decisive close beyond the resistance zone around 22000-22500 can induce bullishness in the index. Traders can expect sideways to higher price action for the day, but are advised to be cautious and trade with less leverage
NESTLEIND 16322.7 16889.9 17327.3 17894.5 18331.9 DOWN
S T O C K S T O W A T C H
5
FX PAIR Expiry S1 PIVOT R1 R2 TREND S2
USDINR JUL 75.22 75.30 75.38 75.46 Down 75.14
EURINR JUL 85.75 85.85 85.96 86.06 Down 85.64
GBPINR JUL 94.30 94.48 94.61 94.79 Down 94.17
JPYINR JUL 70.20 70.36 70.44 70.60 Down 70.12
Dollar Index Spot 95.74 96.01 96.18 96.45 Indecisive 95.57
EURUSD Spot 1.1392 1.1417 1.1456 1.1481 Down 1.1353
GBPUSD Spot 1.2551 1.2587 1.2655 1.2691 Down 1.2483
USDJPY Spot 106.86 107.04 107.24 107.42 Up 106.66
107.22 107.46 107.94 108.18 108.66
Rupee closed marginally lower yesterday with the currency losing 9 paisa against the greenback. The domestic currency opened on a rather flat note and main-tained a sideways to lower stance for most part before closing midway through the day's highs and open, which was also the day's low. The technical picture is in-conclusive for now with the currency re-maining range bound broadly between 75.5 - 74.5 and within that again finding strong resistance around 75 levels. Also
the rather indecisive nature of the domestic indices can have some impact on FII flows and thus on rupee. For now traders would do well to avoid the counter or deal with it only near the ranges' support or resistance levels.
F X O U T L O O K
R U P E E O U T L O O K
DISCLAIMER: This Report has been prepared by Rajesh Kumar Jain Palrecha of Wealth Tree Group registered as Research Analyst
with SEBI having registration number INH200007186. and distributed as per SEBI (Research Analysts) Regulations 2014. This report
does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any
transaction. Securities as defined in clause (h) of section2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instru-
ments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be relia-
ble. although its accuracy and completeness cannot be guaranteed.This report is provided for assistance only and is not intended to be
and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this infor-
mation. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an
investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to
determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.
Wealth Tree or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to
any person from any inadvertent error in the information contained in this report. Neither Wealth Tree nor any of its associates, group
companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or conse-
quential including loss of revenue or lost profits that may arise from or in connection with the use of the information .Please ensure that
you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and Exchange
Board of India before investing in Indian Securities .
