Silver Hits A New All Time High

Market Update - Friday, 28 Nov

The key action today wasn't in the equity markets, which had a relatively dull session, but in precious metals, which were booming. Silver is truly on fire, hitting new all-time highs in the Comex, Shanghai, and Indian rupee markets, exceeding ₹1,64,000 per kilogram.

Gold is also nearing its previous all-time high, up 0.37% to ₹12,703 per gram, climbing close to its earlier peak of ₹13,000 or ₹13,100.

After the massive run-up on Wednesday, the equity market has been extremely quiet for two consecutive days. Thursday was quiet, and Friday was an inside day, a technical term used when the entire trading range of the current day falls within the range of the previous session, essentially making today's candle engulfed by yesterday's.

• Nifty was down 0.05%, Nifty Junior was very flat at 0.1%, Mid-caps were down 0.11%, and Small-caps dipped 0.22%, showing a deviation from the large-cap space as they are still reasonably far from their all-time highs.

• Nifty Bank was also very flat at 0.03%, making it feel almost like the market was on a holiday.

• The primary focus remains on silver, which has hit a new all-time high in rupee terms, surpassing ₹1,64,000 per kilogram. In US dollar terms, it's also performing very well, registering a new weekly high close at nearly 54, with the Shanghai market reportedly reaching 55 or 56.

Other Market Triggers

• On the Nifty heat map, losses were seen in finance companies like Shriram Finance, life insurance companies such as HDFC Life and SBI Life, IT stocks like Infosys and HCL Tech, and energy/power stocks including ONGC, Coal India, L&T, BEL, and Power Grid.

• Gains were concentrated in Auto stocks (Mahindra & Mahindra, TVS Motors) and the Pharma space (Dr. Reddy's and Sun Pharma), with State Bank and Kotak Bank also up slightly.

• The Nifty Next 50 heat map showed more volatility, featuring both brighter green and deeper red.

• Gas Authority lost 4%, with further losses in other energy and gas stocks like IOC and BPCL, which are getting thrashed. However, Bajaj Housing went up 2%, and Adani stocks (Adani Green, Adani Enterprise, and Enrin) were up.

• Vedanta, Hindustan Zinc, Varun Beverages, HAL, and LTIM also posted gains.

• In the Mover of the Day segment, Wellspun Living saw the biggest jump with significant volume and price action, forming a rounding bottom pattern and gaining new ground on the higher side.

U.S. Market Update

• Looking at the US markets' previous session, the indices had a very good week, with S&P 500 up about 3% weekly, NASDAQ at 4.2%, and the Russell 2000 (the broader market index) leaping up 4.9%. However, over the last month, the NASDAQ has lost 2.57%.

• Annually, the NASDAQ has performed well at 21% and the S&P 500 at 12.93%, though a significant part of these gains is concentrated in a few large-cap stocks. In contrast, the Russell 2000 is up only 2% for the entire year, underscoring the narrowness of the US market rally.

What to watch next ?

• The surge in Silver & Gold is setting the stage for the upcoming Fed meet in December, where markets widely anticipate rate cuts.

• There was an unusual stoppage in silver futures trading at the Comex this morning, attributed to a very unusual cooling tower failure at the exchange.

• Everyone hopes this doesn't lead to a market disruption over the weekend, and more information will be available on Monday morning.

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