Stock Market News For 24 February 2015

MARKET BUZZ

Market News: Crude oil futures jumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity after Libya, the holder of Africa’s largest oil reserves, resumed a crude pipeline after a fire while Oman said that it means to upward production by as much as possible, widening a global supply glut. Oil fields in eastern Libya restarted crude supply to Hariga port after a pipeline was recovered while Oman, the largest Middle East producer outside of the OPEC said that it plans to boost production to 980,000 barrels/day in 2015. An OPEC official in an interview to a media news channel, ruled out the prospect of an OPEC emergency meeting to discuss production. Sales of US existing homes in the US dumped to the lowest level in nine months in January while manufacturing in the Texas region shrank this month, signaling a slowdown in the world’s largest economy, dimming the desired outlook for the fuel. US existing home sales slide by 4.9 % to an annualized rate of 4.82 million in January 2015. The gauge measuring Dallas manufacturing activity slide to -11.2 in February from -4.4 in January, with a reading below zero signaling contraction. Oil may extend a decline today as sentiment remains bearish amid worries over a widening supply glut. Crude oil futures, for the March 2015 contract, ended at Rs 3,096/barrel, down by 3.7 %, after opening at Rs 3,196, against the last close price of Rs 3,215. It touched an intraday low of Rs 3,055 till the ending.

Copper futures closed lower in the domestic market on Monday as investors and speculators closed positions in the industrial metal amid tepid desired from China, the world’s largest metals consumer, with markets being closed for a fourth day on the trot due to the Lunar New Year holidays. Plunging oil prices signaled a worsening health of the global economy, restrain desired prospects for the base metal. Despite a deal between Greece and Euro area finance officials who allowed a four month funding extension to the debt-laden country, the accord only provided Greece with some breathing space rather than offering a long term solution to its problems, fadding the demand outlook for copper. A snapshot of national activity in the US edged bigger last month, easing worries over a slowdown in the world’s largest economy, supporting the desired outlook for copper, cutting losses in the base metal. The Chicago Fed National Activity Index increased to 0.13 in January from -0.07 in December, with a reading above zero signaling expansion. Copper may extend losses today as sliding US home sales dampen the demand prospects for the metal. Copper futures for February 2015 contract ended at Rs 355.90/1 kg, downward by 0.25 % after opening at Rs 357.90, against the last ending price of Rs 356.80. It touched the intra-day low-lying of Rs 352.75 till the ending.

Gold futures ended lower in the domestic market on Monday as investors and speculators closed positions in the precious metal as a powerful dollar restrain the demand for the bullion as an alternative asset. Stronger bullion makes gold more expensive for those holding other currencies, thus fadding demand. Further, plunging crude oil prices threatened to exert further downward pressure on global booming, dimming the appeal of gold, a hedge against rising consumer prices. Gold also slides after Greece struck a provisional deal with Euro group finance ministers to get a four-month extension on its bailout, repress safe haven demand. Caution ahead of the testimony of Fed Chair Janet Yellen to a US Congressional Committee on Tuesday where she may offer cues over the Fed’s assessment of the world’s largest economy and the timing of the maiden US interest rate increased since 2006 also weighed on sentiment. Gold may extend a decreased today as investors cautiously await the Yellen speech to the Congress. Gold futures for April 2015 contract ended at Rs 26,153/10 gram, downward by 0.47 % after opening at Rs. 26,228 against the last closing price of Rs. 26,277. It touched the intra-day low-lying of Rs 25,955 till the ending.

Natural Gas futures closed lower in the domestic market on Monday as investors and speculators booked profits in the energy commodity after prices rise in the last session when forecasts for a polar blast extending into early March bolstered the desired outlook for the heating fuel. Latest weather forecasting models have called for below normal temperatures in the key US Northeast and Midwest regions through 6 March 2015. Natural Gas futures for February 2015 contract ended at Rs 181.60/1 kg, downward by 1.3 % after opening at Rs 186.3, against the last ending price of Rs 184. It touched the intra-day low-lying of Rs 180.40 till the ending.

Zinc futures closed lower in the domestic market on Monday as investors and speculators closed exited positions in the industrial metal amid weak physical desired for zinc in the domestic spot market. However, an upward in German business confidence for a fourth month on the trot in February, signaled a pickup in Europe’s largest economy, lifting the desired outlook for industrial metals, cutting losses in zinc futures. The gauge measuring German business confidence rose to 106.8 in February from 106.7 in January. Zinc futures for February 2015 contract ended at Rs 126.65 /1 kg, downward by 0.20 % after opening at Rs 127.75, against the last ending price of Rs 126.90. It touched the intra-day low-lying of Rs 126.35 till the ending.

Silver futures slid by 0.17 percent on profit booking as our Market News says Silver prices slid by 0.17 % to Rs 36,253/kg in futures trade today amid profit booking by speculators and a weak global trend. At the MCX, silver for delivery in March decreased by Rs 61, or 0.17 %, to Rs 36,253/kg in a business throughput of 1,278 lots. At the MCX, silver for delivery in March decreased by Rs 61, or 0.17 %, to Rs 36,253/kg in a business turnover of 1,278 lots. The metal for delivery in May traded lower by Rs 57, or 0.16 %, to Rs 36,610/kg in 155 lots. Market researchers said besides profit-booking by speculators at prevailing levels, a weak global trend mainly increased to the decline in silver prices at futures trade. Silver slid by 0.06 % to USD 16.26 an ounce in Singapore.

 

About Derivative Analysis

Nifty futures opened upward at 8945.00 with +95.55 point from the last day ending at 8849.45. From the opening we saw continuous selling in Nifty. Nifty opened with same day max of 8945.00 and slided downward, at the end of the market day Nifty Futures ended negative at 8742.10 with -1.21%, -107.35 points downward with day low of 8735.20. And the full day Nifty Futures traded between 8945.00 to 8735.20. At the end of the day Nifty futures Loosed -1.21%, -107.35 points downward to close at 8742.10 from the last day closing at 8735.20 with premium of 12.85 points and percent change in open interest of -18.54%. 

India Indices- On Monday market Nifty index opened upward at 8856.85 with +23.25 points from the last day closing at 8833.60 and ended negative at 8754.95. From the morning we saw constantly selling in Nifty Index, Nifty opened with day maximum of 8869.00 slided downward with continuous selling and at the closed of the market day Nifty Index closed negative at 8754.95 with -0.89%, -78.65 points down ward with day low-lying of 8736.10. And the full day Nifty Index traded between 8869.00 to 8736.10. At the end of the day Nifty futures Loosed -1.21%, -107.35 points downward to end at 8742.10 from the last day of ending at 8735.20 with premium of 12.85 points and percent change in open interest of -18.54 percent. 

About Forex Market

Russia's rouble edged bigger on Friday, helped by a modest increase in oil prices and the end-of-month tax period, but traders were likely to continue cautious before an upcoming holiday weekend.

The rupee regained by 14 paise at 62.20 against the US dollar in trade today at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.

Forex dealers indicate though selling of the US currency by exporters and banks supported the rupee but the dollar's strength against other currencies overseas and a lower opening in domestic equity markets, limited the rise. As per latest updates on our Market News Blog.

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