Gold Price Today, 31 August: MCX gold slips marginally; support at Rs 59200-58950, resistance at Rs 59650-59810

Gold Price Today, Gold Price Outlook, Gold Price Forcast: MCX Gold prices slipped marginally on Thursday, while silver rates tumbled 0.32%. On the Multi Commodity Exchange, gold October futures were trading at Rs 59,460 per 10 grams, down by Rs 18 or 0.03%. Silver December futures were trading down by Rs 243 at Rs 76,037 per kg on the MCX.

Gold prices firmed near one-month highs on Thursday as a fresh set of soft US data added to expectations that the Federal Reserve will pause rate hikes this year, although inflation readings due later in the day could amend this outlook, according to Reuters. Spot gold was up 0.2% at $1,945.40 per ounce. US gold futures steadied at $1,972.40.

Traders eye US PCE price index

“Gold and Silver hit its highest in nearly a month, as weak US economic readings reinforced a view that the Federal Reserve may have to hit pause on its interest rate hikes. Benchmark 10-year yields slipped to their lowest since August 11, while the dollar dropped to a two-week low after US GDP data showed a softening of the economy in the second quarter. The fall in US job openings added to the sentiment. ADP private payroll added about 177k jobs the previous month against expectations of 195k, while the US GDP was reported at 2.1% v/s expectations of 2.4%,” said Manav Modi, Analyst, commodity and currency, Motilal Oswal Financial Services.

“CME Fed-watch tool shows that Bets on the Fed leaving rates unchanged in September rose to nearly 91%, while bets of a pause in November rose to nearly 60%, supporting the safe haven appeal of gold and silver. Investors now await the US PCE price index scheduled today and the nonfarm payrolls report tomorrow, for further clues on interest rate trajectory,” Manav Modi, added.

Chandrayaan-3 success: Aerospace, defence stocks continue to rally

Shares of companies related to aerospace and defence sectors continued to remain in the limelight on Thursday, with firms such as Centum Electronics rallying nearly 20 per cent, after the successful touchdown of Chandrayaan-3 mission’s Vikram lander on the Moon.

The stock of Centum Electronics zoomed 19.69 per cent, Paras Defence and Space Technologies Ltd rallied 17.30 per cent, MTAR Technologies jumped 10.32 per cent and Hindustan Aeronautics Ltd climbed 2.69 per cent on the BSE.

Shares of Astra Microwave Products climbed 2.63 per cent, Larsen & Toubro went up 1.82 per cent and Bharat Forge gained 1.63 per cent.

Most of these firms hit their 52-week high levels during morning deals.

Shares of companies related to aerospace and defense sectors had jumped on Wednesday also.

In the equity market, the BSE Sensex jumped 402.83 points to trade at 65,836.13.

“The near-term market outlook has turned distinctly positive with the US economy’s soft landing narrative lifting sentiments globally and Chandrayaan-3’s successful soft landing on the Moon boosting sentiments in India,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

India’s Moon mission Chandrayaan-3 touched down on the lunar south pole at 6.04 pm on Wednesday, making it the first country to land on the uncharted surface.

In Kolkata, Amit Shah inaugurates Ram Mandir-themed Durga Puja Pandal

With Durga Puja being around the corner, Union Minister Amit Shah inaugurated a Durga Puja pandal in Kolkata on Monday. He said that he’d pray Maa Durga to end “corruption and atrocities” in West Bengal.

The Ram temple themed durga pandal that Shah inaugurated is located at Santosh Mitra Square in north Kolkata. The pandal had drawn inspiration from the under-construction Ram Temple in Ayodhya. The Union Home minister had inaugurated Puja Pandal in 2021 at the time of assembly elections in the state which was virtually attended by PM Modi.

It was during the inauguration that Shah prayed for corruption and atrocities to come to an end. He also praised the organizers of the pandal design which was in resemblance to the Ram Temple that is under construction in Ayodhya.

Shah notably said that the Ram Mandir in Ayodhya is set to be inaugurated in January. “However, the people of Kolkata have already celebrated the temple’s inauguration through this Durga Puja pandal. I extend my congratulations to all of you for this remarkable effort”, he added.

The Trinamool Congress leadership taunted Shah by pointing out that the ones who once alleged that Durga Puja festivities were not allowed in West Bengal are now rushing to the state to inaugurate pandals.

TMC Member of Parliament, Santanu Sen, commented, “Those who previously criticized the traditions and culture of West Bengal, claiming that permission was denied for Durga Puja celebrations, are now visiting the state to inaugurate pandals.”

Sen suggested that before propagating “baseless accusations” against West Bengal, Shah should examine the “deteriorating” law and order situation in BJP-governed states, particularly in Uttar Pradesh.

Back in 2019, Shah had inaugurated a communal Durga Puja in Salt Lake, situated on the eastern outskirts of the city. The West Bengal BJP launched its own Durga Puja festivities in 2020, becoming the first and only political party in the state to do so. Subsequent celebrations took place in 2021 and 2022. However, the state’s BJP announced last year that it would no longer be organizing the puja starting from 2023.

Nifty continues record-setting spree, targets 19,700; Bank Nifty undergoes profit-booking, buy on dips

By Dharmesh Shah

Nifty 50 endured its record setting spree over third consecutive week buoyed by firm global cues. As a result, Nifty settled last week at 19,565, up 1.2%. The broader market performed in tandem with the benchmark as Nifty Midcap, Smallcap gained 1.3% and 1.9%, respectively. Sectorally, IT, metal, realty while financials took a breather.

Going ahead, we reiterate our positive bias and expect Nifty to gradually head towards our earmarked target of 19,700. The index is showing significant resilience as intermediate corrections are getting bought into. Consequently, the buy on dips strategy has worked well since March-23. Key point to highlight is that the US dollar index breakdown below multi quarter support of 100 indicates downward acceleration towards 96 in coming months. This will act as a tailwind for more foreign funds flowing in EM and India is a key beneficiary given strong macros.

On the broader market front, Nifty midcap recorded a fresh all time high and small cap index closed at 15 months high. The current up move is backed by sturdy market breadth as currently 78% stocks are trading above 200 DMA, highlighting inherent strength that bodes well for durability of ongoing up move.

Sectorally, BFSI, IT, metal, PSU, Pharma would remain in focus. Highlighting point is that, the laggard sectors like IT, Metals have been a relative outperformer last week and price action indicates money flowing to these sectors amid lower US inflation, weak US dollar index and declining Chinese steel exports. We expect these sectors to catch up from hereon.

On stock front, in large cap we prefer Kotak Mahindra Bank, SBI, Tech Mahindra, LTI Mindtree, Sun Pharma, ONGC, Hindalco, DLF while in midcap Ashok Leyland, Granules, AIA Engineering, Newgen, GMDC, Balkrishna Industries, Oberoi Realty, Biocon, Delhivery, Escorts, Indian Bank will remain in focus. Structurally, since March buy on dips strategy has continued to fare well as Nifty has not corrected more than 400 points while sustaining above 20 days EMA. Thus, any decline from hereon should not be construed as negative instead capitalize it as an incremental buying opportunity as we do not expect index to breach the key support threshold of 19,300-19,200, being confluence of:

A) 38.2% retracement of current up move (18,645-19,523), at 19,232;

B) Since March index has not closed below previous weeks low. Last week’s low was placed at 19,327.

Nifty Chart

Bank Nifty Outlook

The Bank Nifty index underwent profit booking last week amid marginal profit booking in PSU banks after higher inflation and ahead of Q1FY24 earnings. The Bank Nifty closed at 44,819, down 0.24% for the week. The Weekly price action formed Doji with lower high low formation indicating extended profit booking near life highs.

Key observation in recent decline from life highs of 45,655 is that the index has retraced preceding six session rally (43,519-45,655) by just 50% over eight sessions. Shallow pace of retracement of rally is a sign of inherent strength and positive price structure and therefore strategy of buying dips is recommended.

We expect the index to hold key support of 44,000 and gradually head towards life highs of 45,655 in coming weeks. Sustaining above 45,655 would indicate resumption of upward momentum towards 46300 in July as it is 138.2% external retracement of Dec-Mar decline (44,151-38,613).

Structurally, PSU banks are expected to relatively outperform as the PSU banking index is poised for multi-year breakout indicating structural turnaround. Correction in PSU stocks is a buying opportunity. We expect strong support to exist around 44,000 as it is 61.8% retracement of most recent up move from lows of 43,519 and confluence of rising 50 day EMA (44,000).

(Dharmesh Shah – Head Technical at ICICI Direct. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Nifty to surpass 19400 or give up gains? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty was 0.03% lower during Tuesday’s early trading session at 19,382, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Domestic benchmarks NSE Nifty 50 and BSE Sensex broke their two-day slide on Monday. Sensex rose by 0.41% to 65,216.09, and Nifty 50 increased by 83 points, settling nearly at 19,400 at 19,393.6.

“A rebound in the global market after a significant correction prompted buying in domestic equities, particularly within the IT sector. However, the potential for volatility to linger in the near term remains due to the increasing dollar index and elevated US bond yields, fuelled by concerns about rate hikes. Investors are keenly observing the commentary from the Fed chair during its forthcoming summer conference for interest rate insights. Meanwhile, Asian markets displayed a mixed performance, reacting to the smaller-than-anticipated rate cut initiated by the Chinese central bank,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Markets

Shares in the Asia-Pacific region were trading in the green on Tuesday. China’s Shanghai Composite and Shenzhen Component was higher by 0.91% and lower by 0.09% respectively. Japan’s Nikkei 225 traded with gains of 0.56%. South Korea’s Kospi advanced 0.39% while Hong Kong’s Hang Seng gained 0.48%. The Taiwan Weighted index recorded a gain of 0.26%.

Crude Oil

Oil prices were up in early trade on Tuesday ahead of data later expected to show a draw in U.S. crude oil and gasoline inventories, though persistent concerns over a slowdown in China’s economy limited the upside.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 1,901.10 crore, while domestic institutional investors (DII) bought shares worth net Rs 626.25 crore on 21 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has PNB, India Cements, Hindustan Copper, GNFC, SAIL, Chambal Fertilisers, Delta Corp, Metropolis Healthcare, ZEEL, and Indiabulls Housing Finance securities on its F&O ban list for 22 August. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“The Bank Nifty saw a recent attempt by bulls to defend the support around 43750, coinciding with the 100 DMA. Maintaining this support suggests a bullish stance for the index. Immediate resistance lies at 44200. A breakthrough could pave the way for further gains towards 44500.The momentum indicator, RSI, trading in oversold territory, signals the potential for a bounce from current levels. This factor should not be disregarded,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Technical View

“Technically, after a muted opening, the Nifty took support near the 50 day SMA (Simple Moving Average) or 19320 and reversed the trend thereafter. On daily charts, the index has formed a bullish candle and on intraday charts, and has also formed a double bottom formation. As long as the index is holding the 19,320 level, the bullish sentiment is likely to continue. Above which, the index could rally till 19,475-19,500. On the flip side, below 19,320, the uptrend would be vulnerable and could slip till 19,250-19,225,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

BHEL, Shakti Pumps, Suzlon Energy, Axis Bank among 127 stocks that hit 52-week highs; 7 touch 52-week lows

Benchmark indices NSE Nifty 50 and BSE Sensex were trading in the green during the intraday session on Wednesday. The Nifty 50 gained 90.55 points or 0.47% to reach 19,433.20, and the 30-share Sensex surged 312.59 points to reach 65,388.41. Midcap stocks took the lead in driving gains among the broader market indices. The sectoral indices were broadly trading in the green, with gains led by Nifty Metal, Realty, and Media.

Zomato, Adani Enterprises, HDFC Bank, Reliance Industries, ICICI Bank, Reliance Power, BHEL, Cochin Shipyard, Gokaldas Exports, Axis Bank, and State Bank of India were the most active stocks on NSE.

Stocks At 52-Week Lows

Pyramid Technoplast, Rajesh Exports, Bkm Industries, Shrenik, and Steel Exchange India were among 7 stocks that hit 52-week lows.

Volume Gainers

UFLEX, Shakti Pumps (India), Sun Pharma Advanced Research Company, Ram Ratna Wires, Neogen Chemicals, Delta Manufacturing, Take Solutions, and Menon Bearings were among the volume gainers.

Delhi rains: Parts of NCR receive rainfall, brings respite from the heat – See Photos

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Parts of the Delhi-National Capital Region (NCR) received light rain on Monday morning. According to the India Meteorological Department (IMD), this led to muggy weather conditions in Delhi.The city received 5 mm of rainfall during the 24-hour period which ended at 8:30 am on Monday. The minimum temperature settled at 25.5 degrees Celsius, normal for this time of the year, the IMD said, reported news agency PTI.At 8:30 am, the relative humidity in the city was recorded at 96 per cent. The weather department has forecast generally cloudy skies with light rain or thundershowers during the day.The maximum temperature is expected to settle around 38 degrees Celsius.Delhi, on Sunday, recorded a minimum temperature of 28.6 degrees Celsius (a notch above the season’s average) and a maximum of 38.6 degrees Celsius.

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New Delhi: Commuters keeping their vehicles’ headlights on during a rainy morning, in New Delhi. (PTI)

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New Delhi: A commuter wrapped in a plastic sheet to protect himself from rains pedals his bicycle to workplace, in New Delhi. (PTI Photo)

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New Delhi: A man walks near India Gate amid light showers, in New Delhi. (PTI Photo)

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Gurugram: A commuter rides a bike through the waterlogged service road of Delhi-Gurugram Expressway after rain, in Gurugram. (PTI Photo)

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Gurugram: A man rides a tricycle on a road amid rain, in Gurugram. (PTI Photo)

Transportation and industrial business help drive Tata Elxsi’s profit to Rs 200 crore in Q2 FY2024

Bengaluru-based technology and design company Tata Elxsi has reported improvement in financial performance in Q2 FY2024. The company reported revenue of Rs 881.7 crore, up 15.5 percent YoY and net profit of Rs 200 crore, up 14.8 percent YoY.

The robust growth can be attributed to the improvement in performance in transportation business and industrial design division.

Tata Elxsi’s Transportation business, which accounts for 46.2 percent of the revenue coming from three verticals, witnessed strong growth of 7.1 percent QoQ and 26.1 percent YoY. During the quarter it landed a multi-year large deal for SDV (software defined vehicles) from one of the leading automotive OEMs.

The Healthcare & Lifesciences business registered a growth of 8.5 percent YoY.

“OurDesign-Digitalstrategy is playing out well and has helped our Industrial Design division to cross Rs 100 crore revenue mark for the first time in company history. The division grew by 4.1 percent QoQ and 35.4 percent on a YoY basis, driven by strong demand fordesign-ledengineering services.”

The company says it added 585 employees in the quarter and also focussed on employee retention strategies that helped it improve attrition to 13.7 percent.

Sebi submits report to Supreme Court, says probe done

The Securities and Exchange Board of India (Sebi) in a fresh affidavit to the Supreme Court (SC) on Friday said that it has completed its investigation into the Adani Group. Sebi “shall take appropriate action based on outcome of the investigations,” it added.

The market regulator said that it has investigated 24 transactions involving the group’s listed firms and 22 of them are final. On the other two probes, it is awaiting inputs from external agencies.

Sebi has been investigating if there was a violation of rules concerning minimum public shareholding, related party transactions and manipulation of stock prices. It is also investigating the rout in Adani Group stocks following Hindenburg’s report.

The market regulator’s investigation was undertaken after a report by US short seller Hindenburg citing grave corporate concerns wiped out around $150 billion in the group’s market capitalisation within a month. That is, the market capitalisation of the group stood at $235 billion which crashed to $82 billion between January and February end.

The group’s fortunes changed after Australia-based GQG Partners – a global boutique asset management firm with asset under management of over $100 billion – started buying into the group’s stocks. On Friday, the group’s market capitalisation stood at $131 billion.

Hindenburg, on January 24, had alleged that the Adani group was involved in brazen stock manipulation and accounting fraud.

The group has denied the allegations.

Following this, the SC asked the market regulator to look into the allegations and submit its findings to a six-member panel formed in March, which included a retired judge and veteran bankers.

The SC-appointed expert committee had said in an interim report that it had found “no evident pattern of manipulation” and there was no regulatory failure.

However, it had also said that several amendments the Sebi made between 2014 and 2019 constrained the regulator’s ability to investigate, and its probe into alleged violation in money flows from offshore entities has “drawn a blank”.

Sebi refuted these charges by saying that the amendments in the rules in 2018 did away with the requirement of old guidelines.

After seeking an extension of six months initially, which was denied by the SC, on August 14, Sebi had filed an application with the SC seeking 15 more days to submit probe report, saying that it has completed investigating 17 out of the 24 transactions it had taken up for probe.

Jio Financial Services shares hit 5% lower circuit on second trading session

The share price of Jio Financial Services slid 5% on Tuesday, hitting its lower circuit for the second consecutive session due to worries about passive outflows. The financial arm carved out of Reliance Industries witnessed its stocks pegged at a 5% lower circuit restriction on its first day on the bourses, down from the discovered price of Rs 261.85.

Jio Financial Services outlook

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the valuation of JFS largely hinges on its future growth potential and its 6.1 per cent stake in RIL. He notes that the company’s outlook is undeniably promising, given its expansive reach among consumers and merchants. However, it’s this very promise that may be leading to its current turbulence. With JFS shares placed in the T segment, institutional selling is exerting downward pressure on its price in the short term.

“We do not remain alarmed towards threat for existing players as we believe loan origination through existing sets of customers is important, however other factors such as cost of funds, appropriate risk assessment as well as prudent recovery mechanism also plays an important role for the success of a lender,” added InCred Equities.

Despite these near-term challenges, the bigger picture for JFS remains optimistic. The company’s diverse interests spanning consumer and merchant lending, insurance, payments, asset management, and digital broking underline its potential to carve a significant niche in the financial sector. Notably, the firm’s decision to forge a 50:50 joint venture with BlackRock, aiming to penetrate the mutual fund industry, showcases its ambitious forward trajectory.