8 Things That Changed for the Markets Overnight: Gift Nifty, Surge in Tesla Shares, Global Market Indicators for Sensex Today

Gift Nifty is expected to open more than 70 points higher today, following a rise of over 70 points on Nifty Futures since Monday’s close, driven by positive global cues and favorable domestic market benchmarks.

Asian share markets stumbled, while American stock market indicators closed at record levels overnight.

On Monday, both Nifty and Sensex closed in the green for the sixth consecutive day, with each gaining approximately 3%. Nifty touched its new record level of 20,008.15, surpassing its previous all-time high of 19,991.85, which was reached on July 20th this year, setting a new record in 36 sessions.

Sensex closed at 67,127.08, up by 528.17 points or 0.79%, while Nifty closed at 19,996.35, up by 176.40 points or 0.89%.

The benchmark index has reached a historic high, crossing 20,000 points for the first time. This impressive rally follows a breakout from a declining channel that occurred last week. Looking ahead, market sentiment is expected to improve. As long as Nifty stays above 19,900 levels, optimism should prevail. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there’s a solid breakthrough above 20,200, it could pave the way for further gains for Nifty. 20,500 points,”  said Rupak Day, Senior Technical Analyst at LKP Securities.

Today’s major global market indicators for Nifty and Sensex are as follows: [Note: The original text did not provide specific details about these indicators.]

On Tuesday, Asian stock markets experienced moderate fluctuations as the dollar showed signs of relief. Recent progress in the currency, along with anticipation of economic data releases later this week in Europe and America, kept traders on the lookout for signals regarding interest rate changes.

The Governor of the Bank of Japan, Kaziyo Ueda, suggested that there might be sufficient economic data by the end of the year for policymakers to consider raising short-term rates, as the yen experienced its best days in two months compared to the dollar.

On the other hand, the yuan saw its best day in six months as a result of the government’s commitment to rectifying one-sided transactions.

In Japan, government bonds remained under pressure on Tuesday, with 10-year JGB yields rising to a new high of 1 basis point, reaching 0.71%. The MSCI index of Asia-Pacific shares outside Japan remained unchanged, while Japan’s Nikkei rose by 0.3% as the market awaited the European Central Bank’s meeting this week to decide on interest rates and policy direction.

On Wall Street

U.S. stocks closed higher on Monday as the dollar weakened. This move was in line with investor expectations ahead of Wednesday’s monetary policy report and the Bank of Japan’s indication that it could move towards ending the era of negative interest rates.

Tech-heavy Nasdaq led the U.S. equity rally with a 1.1% gain, driven by electric vehicle manufacturer Tesla Inc. and online retailer Amazon.com, both providing the biggest increases for the day.

Both the Dow and the S&P 500 saw gains of 0.3% and 0.7%, respectively. The market displayed a sense of calmness ahead of the important Consumer Price Index (CPI) report on Wednesday, reflecting relatively tranquil sessions compared to the recent volatility.

The Nasdaq Composite gained 156.37 points or 1.14% to reach 13,917.89, while the S&P 500 rose by 30.01 points or 0.67%. The Dow Jones Industrial Average gained 87.32 points or 0.25% to close at 34,663.91.

Tesla Shares Soar:

Prior to the release of the CPI, Treasury yields rose. Tesla’s stock saw an increase due to a prediction by Morgan Stanley analysts, who cited the company’s forthcoming Dojo supercomputer as a catalyst for the stock’s growth.

Morgan Stanley predicted that Tesla’s Dojo supercomputer, focusing on robotics and network services, could drive the company’s market value up by nearly $600 billion. Analysts raised their price target on Tesla shares from $400 to $250, suggesting investors “add more weight” to their positions in the stock. Tesla’s stock has recently outperformed the S&P 500, gaining over 9%.

As of Friday’s closing price of $248.5, the stock is nearly 76% above Tesla’s market capitalization of approximately $789 billion. On Monday, the stock increased by nearly 5.7% to reach $262.70.

Investment in Reliance Retail by KKR

Reliance Retail Ventures Limited, a subsidiary of Reliance Industries, announced on Monday that it would invest ₹2,069.50 crore in the company through a co-investment with global investment firm KKR. This investment values RRVL at ₹8.361 lakh crore, making it one of the top four companies in India in terms of equity value.

Following this development, Reliance Industries will be in the spotlight today.

Also Read: Uncovering the Dynamics of International Trade: Promoting Global Trade

L&T’s Share Buyback

Larsen & Toubro (L&T) raised its offer price for the proposed ₹10,000 crore share buyback on Monday evening from ₹3,000 per share to ₹3,200 per share. This adjustment was made as the stock surged, and the market premium has decreased since the announcement in July. L&T had announced the buyback on July 26 – its first such offer in its nearly eight-decade history. L&T said it could consider a buyback of up to 2.4% or 33.33 million shares held by the public through a book-building process on a stock exchange.

Crude Oil

On Tuesday, Brent crude oil futures traded slightly above $90 per barrel as investors awaited extensive economic data that will be released later this week. This data could indicate whether interest rates will continue to rise in Europe and the United States.

At 00:03 GMT, the international benchmark Brent contract was trading 6 cents higher at $90.58 per barrel, while West Texas Intermediate crude futures were 2 cents lower at $87.27 per barrel.

Last week, after Saudi Arabia and Russia stated that they would gradually increase voluntary production cuts by 1.3 million barrels per day until the end of the year, Brent crude oil reached $90 per barrel.

Gift

Merchant Discount Rate (MDR)
Nifty

 

Gift Nifty showed an uptrend on Monday, trading more than 70 points higher following the closing of Nifty futures. According to analysts, the major support for Nifty in Tuesday’s trading session will be around 19,807 points.

As long as Nifty trades above 19,807 points, the technical outlook remains positive. From a technical perspective, an immediate target for Nifty can be seen at 20,500 points, as psychological resistance is established at that level. Nifty’s 200 DMA is at 18,417 points.

European Markets

On Monday, European stock markets closed higher as traders anticipated extensive economic data releases during a busy week. The benchmark STOXX 600 index ended the

European stock markets closed higher on Monday as traders anticipated a busy week of global economic data releases. The Stoxx 600 index increased by 0.3% at the close, reversing earlier gains of up to 0.9%. This marked the end of the longest losing streak for the Stoxx 600 since February 2018, which had lasted seven sessions.

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