Moneycontrol
Mar 17, 2017 07:58 AM IST | Source: Moneycontrol.com

What changed for market while you were sleeping: 10 things you should know

Here’s are top cues from domestic as well as international markets which could have a bearing on D-Street.


The Nifty might just make a fresh record high on Friday as goods & services tax (GST) just inched closer to becoming a reality. US stocks ended mixed, but the SGX Nifty is already pointing towards a level beyond 9,200 which will ensure a fresh record high

in the opening trade.

Here’s are top cues from domestic as well as international markets which could have a bearing on D-Street:

GST inches closer to reality

The GST Council on Thursday paved the way for rolling out the new tax regime from July, clearing all legislations required for one implementation of the tax by July 1, 2017.

The Council, which met in the national capital, approved the state GST (SGST) and the union territory GST (UTGST) bills. The bills will now have to be cleared by Parliament and state assemblies.

SGX Nifty signals fresh high

The Nifty futures on the Singapore Stock Exchange were trading 18 points higher at 9,204 indicating a positive opening for the domestic market.

Wall Street ended mixed

US stocks slipped on Thursday, weighed down by healthcare shares after proposals made in President Donald Trump's Budget signalled higher regulatory costs for the sector and a cut in federal funding for medical research.

The Dow Jones Industrial Average (DJIA) fell 15.55 points, or 0.07 percent, to close at 20,934.55, the S&P 500 lost 3.88 points, or 0.16 percent, to 2,381.38 and the Nasdaq Composite added 0.71 point, or 0.01 percent, to 5,900.76.

Rupee near 17-month high

The rupee on Thursday pared some gains, but still closed near a 17-month high against the US dollar as the Reserve Bank of India’s (RBI’s) intervention via state-run banks capped the steep rise, dealers said.

The rupee closed at 65.41, a level last seen on October 30, 2015, up 0.43 percent from its previous close of 65.82. The rupee has become the third-best performing currency in Asia after the South Korean won and Taiwanese dollar so far in 2017.

It gained nearly 3.85 percent in this period.

Dollar sank to 5-week low

The dollar slipped to a five-week low on Thursday, while US bond yields rose for the second day in a row after US Federal Reserve increased rates by 25 basis points, but indicated that there would be no pick-up in the pace of monetary tightening.

The dollar fell 0.4 percent against a basket of key currencies to 100.36, adding to Wednesday's steep slide after the Fed's decision. It touched a five-week low.

Oil prices slipped

Oil prices slipped on Thursday as support from a weaker dollar was offset by US crude inventories near record high levels. Brent crude ended the session 7 cents lower at USD 51.74 a barrel. US light crude settled 11 cents lower at $48.75 a barrel.

Reliance Capital to list finance arm

Anil Ambani-run Reliance Capital in on track to list its home finance subsidiary and also divest its stakes in non-core assets that include stakes in travel portal Yatra, Sula Vineyards and also radio and television businesses in the next financial year, said a

report.

The company also told analysts that its health insurance business will be hived off from its general insurance and would focus only on retail insurance buyers. The company was also open to look at buyout opportunities for faster growth, it said.

Technical Check

Investors should remain on the long side as Nifty made a strong bull candle on the daily candlestick charts. Investors can keep a strict stop loss below 9,075 on a closing basis for all long positions.

A bullish candle formed on the daily chart signifies that the market witnessed sustained buying interest from the bulls for the most part of the trading day which is a bullish sign.

The index witnessed a range breakout and now it has to continue to hold above 9,119 to extend its up move towards 9,200-9300 level. If the momentum sustains, Nifty will continue to register fresh highs in the coming week as well.

Options Data

On the options front, maximum Put OI was seen at strike prices 8,800 followed by 8,900 while maximum Call OI was seen at strike prices 9,200 followed by 9,300 strike.

Fresh Put writing was seen at strike prices 9,100, 9,200, 9,000 and 8,900 which are supporting the bullish market undertone while Call unwinding in 9,000 and 9,100 strikes are also giving the scope for next up move, suggest experts.

Anil Agarwal bids for Anglo American

Billionaire metals maven Anil Agarwal made a surprise bid for as much as 13 percent of British mining giant Anglo American for USD 2.4 billion, said a news report. The move will give him a foot in the door of the USD 23-billion conglomerate, which is largerthan his Vedanta Resources.
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