Stock markets open positive: Sensex up over 260 points, Nifty above 17,200

The benchmark stock market indices opened positive on April 19. The Sensex rose more than 260 points on the opening bell. Nifty 50 index was up 0.20 percent while Bank Nifty was up 0.23 percent.

At 09:16 AM, the Sensex was up 269.23 points or 0.47 percent at 57,435.97. The broader Nifty was up 92.80 points or 0.54 percent at 17,266.50. About 1,687 shares have advanced, 328 shares declined, and 65 shares are unchanged.

Among early gainers on the Nifty were Grasim Industries, Eicher Motors, Bajaj Auto, Bajaj Finserv and Apollo Hospitals. HDFC Bank, HDFC, Infosys and Bharti Airtel were laggards at the opening bell.

Asian stocks up

Stocks in Asia mostly rose Tuesday with investors weighing Chinese measures to support the economy and the prospect for faster Federal Reserve policy tightening to fight inflation. On Monday, the People’s Bank of China announced it will increase financial support for industries, businesses and people affected by COVID-19.

US stocks close with small losses

All three major US stock indexes ended with small losses in a choppy trading session on Monday as earnings season prepared to move into full swing with rising uncertainty over the economic outlook. Investors remain concerned about rising inflation and how that may weigh on the economy, as the Federal Reserve struggles to keep a lid on rising prices.

US economy faces 35% chance of recession in 2 years: Goldman Sachs

Goldman Sachs’s chief economist Jan Hatzius and his team predicted the US economy faces a 35 percent chance of recession in the next two years, and 15 percent over the next year. Treasury yields have marched higher in response to surging inflation, with the 10-year rate rising to 2.86 percent on Monday for the first time since December 14, 2018.

Crude prices up

Natural-gas futures extended their gains into a fifth straight session on Monday, with prices settling at their highest in nearly 14 years, while oil prices finished at their highest levels of the month so far on worries about global energy supplies. West Texas Intermediate crude for May delivery rose $1.26, or 1.2 percent, to settle at $108.21 a barrel after trading as high as $109.81. May natural gas jumped 7.1 percent to $7.82 per million British thermal units, the highest levels since Sept. 23, 2008. The contract rose 16 percent last week.

Crude oil markets initially tried to rally during the trading session on Monday but gave back a little bit of the gains, still crude oil settled on a positive note as WTI crude settled at $107.61 per barrel and Brent settled at $112.66 per barrel, Domestic markets were also up by 3.21 percent at 8,337.

Libya's National Oil Corp on Monday said "a painful wave of closures" had begun hitting its facilities and declared force majeure at Al-Sharara oilfield and other sites. With global supplies now so tight, even the most minor disruption is likely to have an outsized impact on prices. Natural gas prices also surged to 14 year highs due to Russia-Ukraine crisis. The International Energy Agency had warned that roughly 3 million barrels daily of Russian oil could be shut in from May onwards due to sanctions. Russia-Ukraine crisis and shutdown in Libyan oil field could continue to support global energy prices.

We expect crude oil prices to remain volatile in today’s session, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Crude oil is having support at $104.50-$102.30 and resistance is at $109.80–112.50. In INR terms crude oil has support at Rs 8,120-7,960; while resistance is at Rs 8,490–8,620.

World Bank announces global growth forecast

The World Bank announced it was cutting its global growth forecast for 2022 by nearly a full percentage point due to the impact of Russia's invasion of Ukraine. The organization now expects economic growth of 3.2 in 2022, down from a prior 4.1 percent forecast. The largest single factor in the reduced growth forecast was a projected economic contraction of 4.1 percent across Europe and Central Asia.

Bullion outlook

Gold and silver rose to a one-month high on Monday, with gold just shy of the $2,000 an ounce level and silver also crossing $26 per troy ounce levels as concerns around the Russia-Ukraine conflict and rising inflationary pressures increased safe-haven bids for the precious metal.

The little step-up in tension due to the Russia-Ukraine war with inflationary pressures across the board and concerns over the economic slowdown from covid-led restrictions in China also boost safe-haven demand for gold and silver. Gold’s advance came despite a jump in benchmark 10-year US Treasury yields to the highest since December 2018 and a stronger dollar, both of which usually soften the appetite for gold among overseas buyers.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, Gold has support at $1962-1950, while resistance at $1998-2010. Silver has support at $25.58- 25.40, while resistance is at $26.05-26.22. In INR terms gold has support at Rs 52,950–52,780, while resistance is at Rs 53,550–53,680. Silver has support at Rs 69,350- 68,980 while resistance is at Rs70,370–70,740.

Rupee slips 6 paise to 76.35 against US dollar

USDINR 27April futures contract extended its gain and tested 76.5000 levels again. On the daily technical chart a pair is trading above its resistance level of 76.20. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, We observed that a pair is sustaining above 76.20 levels and technical chart is showing positive momentum. Looking at the technical set-up, if a pair continues to sustain above 76.20; could show further strength towards 76.55-76.70 in the upcoming sessions. We suggest for holding long positions in the pair for the upside targets of 76.55-76.70 keeping a closing stop loss of 76.05.

Results today

ACC, Larsen & Toubro Infotech, Mastek, Tata Steel Long Products, PCBL, Benares Hotels, Godavari Drugs, and Longview Tea Company will release quarterly earnings today.

Stock under F&O ban on NSE

Tata Power is under the F&O ban for April 19.

(With Reuters and Agencies inputs)

Published on: Tuesday, April 19, 2022, 09:27 AM IST