A list of important headlines from across news agencies that could help in your trade today.
The index made a strong bearish candle on the daily candlestick chart, which also closely resembles a pattern similar to a Bearish Belt Hold.Free Equity Tips
Analysts advise investors to avoid long positions for now and stay on the sidelines till the monetary policy committee's meet gets done with. Hawkish commentary from the Reserve Bank of India could lead to a knee-jerk reaction in the market.
The Nifty broke below its crucial short-term moving averages (13-day,5-day, and 20-day EMA) and its next support is placed at 10,576 and 10,558. Bulls would only be able to take control over the market once Nifty closes above 10,770.
The Nifty, which opened at 10,765 on Monday, rose to an intraday high of 10,770.30. However, bears eventually took control over the index and pushed it below 10,700, and 10,650, to hit an intraday low of 10,618.35. The index finally closed 67.70 points lower at 10,628.50. stock market
"The tide may be slowly tilting in favour of bears as Nifty was sold off from day’s high of 10,770 levels before signing off the session with a strong bearish candle formation. Interestingly for last three sessions bulls struggled to get past the level placed around 10,770 which shall now become a formidable resistance point on the upside," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in.
According to Pivot charts, its key support is placed at 10,574.43, followed by 10,520.37. If the index starts moving upward, key resistance levels to watch out are 10,726.43 and 10,824.37.
The Nifty Bank index closed at 26,257.6. The important Pivot level, which will act as crucial support for the index, is placed at 25,959.8, followed by 25,662.0.
On the upside, key resistance levels are placed at 26,801.5, followed by 27,345.4.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
Wall Street ends higher
Wall Street’s three major indexes rose on Monday, led by a rally in tech stocks, pushing the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices weighed on the energy sector.
The Dow Jones Industrial Average rose 178.48 points, or 0.72 percent, to 24,813.69, the S&P 500 gained 12.25 points, or 0.45 percent, to 2,746.87. The Nasdaq Composite added 52.13 points, or 0.69 percent, to reach 7,606.46, a record closing high.
Asia stocks fall after rally
Asian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent after surging 1.4 percent the previous day. Japan's Nikkei gained 0.2 percent and South Korea's KOSPI lost 0.3 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 20.5 points or 0.19 percent. Nifty futures were trading around 10,593-level on the Singaporean Exchange.Powerful sanctions to remain on North Korea: White House
The White House said on Monday its policy of tough sanctions on North Korea has not changed, days after US President Donald Trump said he no longer wanted to use the phrase “maximum pressure” to describe the campaign to press North Korea to give up its nuclear weapons.
After meeting a senior official from Pyongyang at the White House on Friday, Trump said North Korea was being more cooperative and that although sanctions would remain in place, he would hold off on imposing new ones.
All eyes on MPC's rate decision scheduled on Wed
Expectations is of a status quo on policy rates but the commentary would be keenly watched, experts said. There is a higher probability of a change in stance and a rate hike probably in August. If the RBI changes monetary policy stance this week and the MSP hike remains in single-digit, the RBI’s credibility will take a serious hit.
A Reuters poll before the January-March growth data showed that 40 percent of nearly 60 respondents saw a rate hike on Wednesday, while nearly 70 percent of 44 projected that in August.
Oil climbs, but record U. crude output, higher OPEC supplies drag
Oil prices edged higher on Tuesday after falling nearly 2 percent in the previous session, but growing US production and expectations of higher OPEC supplies continue to weigh on sentiment.
Brent crude futures added 15 cents, or 0.2 percent, to USD 75.44 a barrel after settling down 2 percent at USD 75.29 a barrel on Monday. US West Texas Intermediate crude was up 28 cents, or 0.4 percent, at USD 65.03 a barrel.
Government plans Rs 7000 cr bailout for sugar mills
The government is likely to announce a bailout package of more than over Rs 7000 cr (USD 1.04 billion) to the cash-starved sugar mills to help clear dues to farmers. The country’s Cabinet Committee on Economic Affairs is scheduled to meet on Tuesday to decide on the bailout, according to the report.
The government is keen to placate India’s 50 million cane growers, who make up an influential political lobby, especially with national elections barely a year away in May 2019.
US Fed must go slow with balance sheet unwind: Urjit Patel
The US Federal Reserve must slow down the pace of trimming its balance sheet in order to avoid a crisis in the dollar bond market, RBI governor Urjit Patel said.
“Given the rapid rise in the size of the US deficit, the Fed must respond by slowing plans to shrink its balance sheet. If it does not, Treasuries will absorb such a large share of dollar liquidity that a crisis in the rest of the dollar bond markets is inevitable,” Patel said.
BSE brings 109 firms under enhanced surveillance
The BSE yesterday decided to bring 109 companies, including Reliance Naval and Engineering, Amtek Auto, GVK Power & Infrastructure under enhanced surveillance measures. "100 percent margins shall be applicable with effect from June 6, 2018 on all open positions as on June 5, 2018 and new positions created from June 6, 2018 onwards," the exchange said in a circular.
Par panel asks bankers to prepare road map to deal with NPAs
Parliamentarians asked bankers to prepare a road map to deal with mounting bad loans in the system, which touched Rs 8.31 lakh crore at end-December 2017. It was also emphasised during a meeting of the bankers with Parliamentary Standing Committee on Finance, headed by Lok Sabha MP Verappa Moily, that corporates should not be painted with a same brush as all are not wilful defaulters, said sources.
Gross NPAs of state-owned banks had crossed Rs 7.77 lakh crore at the end of December 2017, according to official data. Among others, SBI Chairperson Rajnish Kumar and PNB MD Sunil Mehta briefed the panel on various aspects of non-performing assets (NPAs) and banking frauds.
Rupee turns soft ahead of RBI policy meet, down 5 paise
The rupee yesterday slipped from its near one-month high to end lower by 5 paise at 67.11 against the US dollar due to some demand for the American currency from importers and banks.
It swung between a high of 66.84 and a low of 67.17 during the day. Heavy sell-offs in local equities along with massive capital outflows further added to the volatility.
Sebi lowers expenses charged by Mutual Funds to increase penetration
Sebi has drastically slashed the 'additional expense' charged by mutual funds to just 5 basis points to help increase the penetration of such products among investors. The move will help reduce the cost of investing in MFs and industry players believe that it may result in lower commissions for distributors.
The additional expense of 20 basis points has been reduced to 5 basis points across all MF schemes, the Securities and Exchange Board of India said in a notification dated May 29.
Sebi provides relaxations for insolvent firms
Sebi has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges.
The move is expected to provide succour for various listed companies that have been referred for resolution under the Insolvency and Bankruptcy Code. More than 750 entities, including many listed firms, are facing insolvency proceedings.
Analysts advise investors to avoid long positions for now and stay on the sidelines till the monetary policy committee's meet gets done with. Hawkish commentary from the Reserve Bank of India could lead to a knee-jerk reaction in the market.
The Nifty broke below its crucial short-term moving averages (13-day,5-day, and 20-day EMA) and its next support is placed at 10,576 and 10,558. Bulls would only be able to take control over the market once Nifty closes above 10,770.
The Nifty, which opened at 10,765 on Monday, rose to an intraday high of 10,770.30. However, bears eventually took control over the index and pushed it below 10,700, and 10,650, to hit an intraday low of 10,618.35. The index finally closed 67.70 points lower at 10,628.50. stock market
"The tide may be slowly tilting in favour of bears as Nifty was sold off from day’s high of 10,770 levels before signing off the session with a strong bearish candle formation. Interestingly for last three sessions bulls struggled to get past the level placed around 10,770 which shall now become a formidable resistance point on the upside," Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in.
According to Pivot charts, its key support is placed at 10,574.43, followed by 10,520.37. If the index starts moving upward, key resistance levels to watch out are 10,726.43 and 10,824.37.
The Nifty Bank index closed at 26,257.6. The important Pivot level, which will act as crucial support for the index, is placed at 25,959.8, followed by 25,662.0.
On the upside, key resistance levels are placed at 26,801.5, followed by 27,345.4.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
Wall Street ends higher
Wall Street’s three major indexes rose on Monday, led by a rally in tech stocks, pushing the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices weighed on the energy sector.
The Dow Jones Industrial Average rose 178.48 points, or 0.72 percent, to 24,813.69, the S&P 500 gained 12.25 points, or 0.45 percent, to 2,746.87. The Nasdaq Composite added 52.13 points, or 0.69 percent, to reach 7,606.46, a record closing high.
Asia stocks fall after rally
Asian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent after surging 1.4 percent the previous day. Japan's Nikkei gained 0.2 percent and South Korea's KOSPI lost 0.3 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 20.5 points or 0.19 percent. Nifty futures were trading around 10,593-level on the Singaporean Exchange.Powerful sanctions to remain on North Korea: White House
The White House said on Monday its policy of tough sanctions on North Korea has not changed, days after US President Donald Trump said he no longer wanted to use the phrase “maximum pressure” to describe the campaign to press North Korea to give up its nuclear weapons.
After meeting a senior official from Pyongyang at the White House on Friday, Trump said North Korea was being more cooperative and that although sanctions would remain in place, he would hold off on imposing new ones.
All eyes on MPC's rate decision scheduled on Wed
Expectations is of a status quo on policy rates but the commentary would be keenly watched, experts said. There is a higher probability of a change in stance and a rate hike probably in August. If the RBI changes monetary policy stance this week and the MSP hike remains in single-digit, the RBI’s credibility will take a serious hit.
A Reuters poll before the January-March growth data showed that 40 percent of nearly 60 respondents saw a rate hike on Wednesday, while nearly 70 percent of 44 projected that in August.
Oil climbs, but record U. crude output, higher OPEC supplies drag
Oil prices edged higher on Tuesday after falling nearly 2 percent in the previous session, but growing US production and expectations of higher OPEC supplies continue to weigh on sentiment.
Brent crude futures added 15 cents, or 0.2 percent, to USD 75.44 a barrel after settling down 2 percent at USD 75.29 a barrel on Monday. US West Texas Intermediate crude was up 28 cents, or 0.4 percent, at USD 65.03 a barrel.
Government plans Rs 7000 cr bailout for sugar mills
The government is likely to announce a bailout package of more than over Rs 7000 cr (USD 1.04 billion) to the cash-starved sugar mills to help clear dues to farmers. The country’s Cabinet Committee on Economic Affairs is scheduled to meet on Tuesday to decide on the bailout, according to the report.
The government is keen to placate India’s 50 million cane growers, who make up an influential political lobby, especially with national elections barely a year away in May 2019.
US Fed must go slow with balance sheet unwind: Urjit Patel
The US Federal Reserve must slow down the pace of trimming its balance sheet in order to avoid a crisis in the dollar bond market, RBI governor Urjit Patel said.
“Given the rapid rise in the size of the US deficit, the Fed must respond by slowing plans to shrink its balance sheet. If it does not, Treasuries will absorb such a large share of dollar liquidity that a crisis in the rest of the dollar bond markets is inevitable,” Patel said.
BSE brings 109 firms under enhanced surveillance
The BSE yesterday decided to bring 109 companies, including Reliance Naval and Engineering, Amtek Auto, GVK Power & Infrastructure under enhanced surveillance measures. "100 percent margins shall be applicable with effect from June 6, 2018 on all open positions as on June 5, 2018 and new positions created from June 6, 2018 onwards," the exchange said in a circular.
Par panel asks bankers to prepare road map to deal with NPAs
Parliamentarians asked bankers to prepare a road map to deal with mounting bad loans in the system, which touched Rs 8.31 lakh crore at end-December 2017. It was also emphasised during a meeting of the bankers with Parliamentary Standing Committee on Finance, headed by Lok Sabha MP Verappa Moily, that corporates should not be painted with a same brush as all are not wilful defaulters, said sources.
Gross NPAs of state-owned banks had crossed Rs 7.77 lakh crore at the end of December 2017, according to official data. Among others, SBI Chairperson Rajnish Kumar and PNB MD Sunil Mehta briefed the panel on various aspects of non-performing assets (NPAs) and banking frauds.
Rupee turns soft ahead of RBI policy meet, down 5 paise
The rupee yesterday slipped from its near one-month high to end lower by 5 paise at 67.11 against the US dollar due to some demand for the American currency from importers and banks.
It swung between a high of 66.84 and a low of 67.17 during the day. Heavy sell-offs in local equities along with massive capital outflows further added to the volatility.
Sebi lowers expenses charged by Mutual Funds to increase penetration
Sebi has drastically slashed the 'additional expense' charged by mutual funds to just 5 basis points to help increase the penetration of such products among investors. The move will help reduce the cost of investing in MFs and industry players believe that it may result in lower commissions for distributors.
The additional expense of 20 basis points has been reduced to 5 basis points across all MF schemes, the Securities and Exchange Board of India said in a notification dated May 29.
Sebi provides relaxations for insolvent firms
Sebi has relaxed requirements to comply with delisting norms for companies facing insolvency proceedings provided the resolution plan lays down the procedure for delisting that particular entity from the exchanges.
The move is expected to provide succour for various listed companies that have been referred for resolution under the Insolvency and Bankruptcy Code. More than 750 entities, including many listed firms, are facing insolvency proceedings.
