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NIFTY analysis with experts, Q2 review of Muthoot Finance, Indian markets plunge as selling pressure drags Nifty down…. Market updates for 06/12/18

PurpleTrades - stock market courses > News > NIFTY analysis with experts, Q2 review of Muthoot Finance, Indian markets plunge as selling pressure drags Nifty down…. Market updates for 06/12/18

Report by- Sabyasachi Bhattacharya

 

Q2 result of Muthoot Finance; Profit rises to 9% to Rs 484 crores-

Gold financing company Muthoot Finance has reported a 8.5 percent year-on-year increase in September quarter profit at Rs 483.8 crore with weakening asset quality. Let us take a look at the key insights of their report-

  • Profit in same period last year stood at Rs 445.7 crore.
  • Revenue from operations during the quarter declined 0.7 percent to Rs 1,650 crore compared to Rs 1,661.6 crore in corresponding period previous year.
  • Capital adequacy ratio for the quarter ended September 2018 stood at 25.92 percent, which has fallen compared to 26.44 percent in previous quarter.
  • Assets under management grew by 21 percent year-on-year to Rs 35,956 crore as of September 2018.
  • Company reported a 8.5 percent year-on-year increase in September quarter profit at Rs 483.8 crore

 

Let’s take a look at their Q2 performance-

Source- MoneyControl, Purple Trades Research Department   

 

 

Indian Indices took a nose dive as selling pressure increases ahead of election-

Chart source- ChartInk

Indian markets had a negative day today. As you can see on the chart Nifty had a GAP-DOWN opening today after which the Index started falling before consolidating at the levels of 10,645. The Index was not able to break the resistance at 10,700 and further moved below to close up with a loss of 181 points approximately. Due to the last hour of fierce selling the Index was dragged below 10,650 level. After rallying for six consecutive sessions, benchmark indices on Thursday corrected for the third straight session as traders turned cautious in the run-up to the announcement of five state elections’ results next week. The outcomes of these elections is what the market is predominantly keeping an eye out for. The other factors that will influence sentiment would be the outcomes of the OPEC meet later in the day and US Federal Reserve policy meeting next week. The RBI’s Monetary Poliy Review was along expected lines. At the end of the day benchmark indices remained under pressure throughout the session with Nifty ended just above 10,600 level, while Sensex lost 570 points. The Sensex was down 572.28 points at 35,312.13, while Nifty was down 181.70 points at 10,601.20. About 745 shares have advanced, 1778 shares declined, and 150 shares are unchanged. Maruti Suzuki, Tata Motors, Yes Bank, Reliance Industries and Adani Ports are the major losers on the Sensex.

 

Let’s take a look at the factors that dragged the markets down-

  • The outcomes of the five state elections seem to be crucial for the market as they will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana will take place on December 7 and the counting of votes in all the states will be done on December 11. Of these five states, Madhya Pradesh and Rajasthan are key ones for both national parties — BJP and Congress. The BJP, which is in power at the Centre, is the incumbent party in Chhattisgarh, Madhya Pradesh and Rajasthan.
  • The rupee went back to 71 to the dollar after trading around 69-70 for the last few sessions because of a weak dollar and a sharp correction in crude oil prices.
  • Investors would be tracking outcome of the OPEC meet while the US President has reiterated that the OPEC should consider lower oil prices that is positive for the global economy.
  • Crude oil prices have been quite volatile as investors around the world maintained a cautious stance ahead the OPEC meeting later in the day.
  • Globally, most experts expect OPEC members to cut supply by 0.5-1.5 million barrels per day, because over the last one month, oil prices have fallen more than 30 percent to around $60 a barrel due to oversupply, especially after the US allowed some countries to import oil from Iran.
  • The OPEC meeting on December 6 will be crucial from the inflation perspective as the members may consider constricting supplies in view of the falling oil prices. Additionally, there is a risk of the market misunderstanding the stance of the US Fed, which may not be in a position to hold rates longer in an US environment characterized by ultra-low unemployment and inflationary tendencies. Collectively, these factors may not give the RBI a long enough breather on the rate front.
  • Global markets continued to correct sharply for the second consecutive session ahead of a closely watched meeting by the Organization of the Petroleum Exporting Countries (OPEC). Japan’s Nikkei fell 1.91 percent, China’s Shanghai Composite dropped 1.68 percent, South Korea’s Kospi 1.55 percent and Hong Kong’s Hang Seng 2.47 percent, following negative lead from Wall Street.
  • The Nifty50 fell near 10,600 levels after hitting 10,900 levels few days back, losing nearly 300 points in these three consecutive sessions ahead of key events.
  • The index has also broken its 200-daily moving average, which was placed around 10,749, the crucial level to watch out for.

 

 

Let’s take a look at the performance of major Indices-

Global markets moved downwards as all of the Indices were down, NASDAQ was seen in the RED along with FTSE, DAX, CAC. Asian Markets were also in the RED as NIKKEI and Hang Seng were seen in the RED, except SGX Nifty which ended up in GREEN.

Source- MoneyControl, Purple Trades Research Department   

 

 

 

Key Points for Traders to watch out for while trading Nifty tomorrow-

  • 10,580 is a short term support for Nifty.
  • If Nifty breaks 10,580 then it has the potential to go down.
  • 10,620 is a short term resistance for Nifty.
  • If Nifty breaks 10,620 then it has the potential to go up.

 

 

Top sectors that moved the market today-                            Data source- Moneycontrol

 

 

 

Top Gainers for today-                                                                                        Data source- Moneycontrol

 

 

Top losers for today-                                                               Data source- Moneycontrol

 

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