Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:Nifty today: GIFT Nifty up 230 points; here’s the trading setup for today’s session– What Just Happened and why it matters right now.
The Nifty 50 jumped 399.75 points, or 1.78%, to close at 22,912.40, while the 30-share BSE Sensex surged 1,372.06 points, or 1.89%, to settle at 74,068.45.
Despite today’s gains, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty closed with an indecisive candle, indicating that the direction of the next move remains uncertain.
“The Nifty started higher following the first comments suggesting a possible de-escalation of the Middle East conflict. The index rallied sharply but encountered resistance around 23,000, where call writers had significant positions. It appears that much will depend on Wednesday’s opening. A negative opening may create bearish sentiment in the market, while a positive opening could indicate positive sentiment for the short term,” De said.
Here’s breaking down of the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a gap-up start
GIFT Nifty on the NSE IX traded higher by 228.5 points, or 1 per cent, at 23,157.50, signaling that Dalal Street was headed for a gap-up start on Wednesday.
- Tech View: Decoding the charts, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said a small bull candle formed on the daily chart with an upper and long lower shadow. Technically, this market action indicates a sharp bounce back in the market amidst high volatility. The negative chart pattern of lower tops and bottoms is continued, and the present up move is expected to be a new lower top of the pattern, which needs to be confirmed at the highs, he added.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 7.44% to settle at 24.74 over the last closing.
Asian shares gain
Oil declined, while equities advanced as optimism strengthened around Washington’s push to resolve the near month-long Middle East conflict. The dollar edged lower.
- S&P 500 futures rose 0.6% as of 9:02 a.m. Tokyo time
- Hang Seng futures were little changed
- Japan’s Topix rose 1.6%
- Australia’s S&P/ASX 200 rose 1.4%
- Euro Stoxx 50 futures rose 0.3%
US stocks end lower
Wall Street indexes lost ground in Tuesday’s volatile session as investors swayed between fears of rising oil prices and hopes for a resolution to the U.S.-Israeli war on Iran as U.S. President Trump claimed progress in talks even as reports suggested that more American troops were headed to the Middle East.
- Dow dips 0.18%,
- S&P 500 down 0.37%,
- Nasdaq falls 0.84%
Oil drops
Oil prices dropped more than 5% on Wednesday on the prospect of a possible ceasefire easing supply disruptions from the key Middle East producing region after reports the U.S. sent Iran a 15-point plan to end the war between them.
Dollar subdued
Currency markets showed signs of fatigue early in Asian trade on Wednesday, with traders cautious over U.S. President Donald Trump’s efforts to bring an end to the war with Iran.
Gold falls
Gold rose more than 2% on Wednesday, buoyed by a softer dollar, while a drop in oil prices eased concerns about elevated inflation and higher global interest rates, amid reports of a U.S. plan to end the Middle East war.
FII/DII action
Foreign institutional investors (FIIs) were net sellers of Indian equities as they sold shares worth Rs 8,009.56 crore on Tuesday while the domestic institutional investors (DIIs) shares purchased shares worth Rs 5,867.15 crore.
Stocks in Ban
No securities are under F&O trade ban today.
Rupee
The Indian rupee paused a three-day run of hitting record lows to nudge higher on Tuesday as traders parsed dissonant signals emanating from Washington and Tehran about a potential resolution to the conflict in the Middle East. The rupee nudged up 0.1% to end the session at 93.8650, from its close at 93.9750 in the previous session.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)