Daily Market Reports From CapitalHeight

Daily Market Reports From CapitalHeight
Market commentary
                        Today Nifty opened in green and thus it tried to make comeback right from the opening of the day, Nifty point 70 up 11391, Bank Nifty future up 80 point 27963, Sensex up 106 points 37749, INR 69.74.The Indian rupee opened at record low today and opened at 69.74 due to turkey economic woes persisted, and expectedbreak the psychological level of 70. Yesterday Nifty closed by forming doji candlestick pattern on daily chart and today it opened gap up forming a small green candle indication of bulls taking charge following global cues. By the closing time Nifty future up 83 points at 11,464, Bank Nifty future up212 points 28082, Sensex up 228 points 37873.
                                        Nifty Daily Chart
Nifty Daily Chart by CapitalHeight

Market Highlight
·   The Indian rupee has seen the worst day in its history on Tuesday, touching 70 a dollar for the first time, led by depreciation in the Turkish Lira that put more pressure not only on Euro but also on other Asian currencies. The fall in currency started couple of days back, taking total dip to 2.4 percent in August and year-to-date around 10 percent.
·       The Turkish lira has plunged by about 25 percent in a week or 45 percent on a year-to-date basis, due to heady mix of high foreign debt, rising  CAD and deteriorating political situation. Although India is less vulnerable relative to other EMs in terms of external debt and current account deficit, but if the crisis continues further, it could hurt economic recovery.
·     India's annual rate of inflation based on wholesale prices eased to 5.09 per cent in July from a four-year high of 5.77 per cent in June, official data showed on Tuesday. The data on wholesale price index (WPI) furnished by the Ministry of Commerce and Industry showed that the rate of inflation had increased to 1.88 per cent during the corresponding month in 2017.
·    Allahabad Bank on Tuesday reported a net loss of Rs 19.44 billion in the first quarter ended June due to higher provisioning for bad loans. Total income of the bank also fell to Rs 47.94 billion as against Rs 49.68 billion mainly owing to fall in income from other sources.
·   IDBI Bank's net loss widened to Rs 2,410 crore in the first quarter of this fiscal against Rs 853 crore in the year-ago quarter due to a huge jump in loan loss provisions. The net loss in the reporting quarter, however, is lower that the preceding quarter's net loss of Rs 5,663 crore.
·   Rupee touched life time low today at 70.1 and thus could benefit the IT and Pharma stocks which get their earnings in dollar. So we can see bullish for IT and Pharma stock; as per our analysis the rupee may fall upto 70.5 level soon if the cues continue.
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