GDP DATA AND F&O EXPIRY TO NAVIGATE THE MARKET

Indian equity benchmarks fell on Thursday, snapping a three-week winning streak as immense selling seen among major sectors and a weak trend in the global market. The Indian equity market was shut down on Friday for Gurunanak Jayanti. On the weekly chart, Nifty 50 ended 1.46 percent lower at 10,526.75 and Sensex fell 1.3 percent in the week gone by and ended below 35,000.

The broader market outperformed benchmark indices. The BSE Mid-cap index slipped 0.78 percent while the BSE Small-cap index was down by 0.9 percent in the same period. Nifty Pharma is a major looser fell by 4.4 percent as the rupee strengthened that led to a selloff of tech shares.

THE US MARKETS FALL CONTINUES

U.S. market indices dropped more than 3.5 percent as the energy sector tumbled due to the  continues weakness in oil prices that slid below USD 51 a barrel, its lowest price in a year. For the week, the Nasdaq tumbled 4.3%, the Dow ended the week 4.4% lower, while the S&P 500 decline of 3.8%.

It’s the largest weekly fall since March and closed down over 10% from the September 20 closing high. They also had their biggest loss for a Thanksgiving week since 2011. Apart from the energy sector, declines in technology and internet stocks including Apple and Amazon took the markets lower.

The European markets fell for a second straight week as concerns about slowing global growth, weak earnings, and a U.S.-China trade war.  The euro-area economy stumbled again this month growing at its slowest pace in nearly four years in November. The PMI manufacturing index slipped to 51.5 in November and the gauge of services fell to 53.1, both the lowest in more than two years.

INDIAN RUPEE GAINS 220 PAISE IN JUST 7 DAYS AGAINST THE DOLLAR…

The Indian currency continued its upward rising streak for the seventh straight day by rising 45 paise to 71.01; it’s highest in over three months. The recent fall in the prices of crude oil has worked in favour of the rupee and has boosted sentiment for the currency. In the last seven trading sessions including today, the Indian unit has appreciated by Rs 2.2 against the dollar.

OPEC MEETING WILL GUIDE FOR CRUDE OIL PRICES…

Oil prices slipped after US crude inventories swelled to their highest level since December 2017; registering its sixth successive weekly loss in a row. U.S. WTI crude dropping by 7.8% on Friday, to USD 50.39 a barrel and now it’s off 34% from its October high of USD 76.

Whereas Brent crude dropped 5.9 percent to USD 58.94 which are the lowest level since late October 2017. OPEC and non-OPEC ministers meet in Vienna on December 5 where the cartel and allied producers — notably Russia — will decide on potential output cuts aimed at tightening the market.

COMING UP NEXT WEEK!

The major event for the Indian equity market would be the Q2GDP data on November 30 along with derivatives expiry on November 29. Meanwhile, volatility is expected to remain high due to F&O expiry and uncertainty ahead of the G-20 summit kept this space subdued. A Brexit negotiation is also at a “critical moment” ahead of an EU summit.