Mar 20, 2017 07:36 AM IST | Source: Moneycontrol.com

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

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

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

Moneycontrol News

The Nifty50 might just make a breather in opening trade on Monday following weak global cues, but the initial weakness should be bought into and the index should resume its upward journey.

Stay tuned with Moneycontrol.com to find out what happens in currency and equity markets on today.

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

EPFO may invest up to 15% in equity markets

The Employees Provident Fund Organisation (EPFO) may propose to invest up to 15 percent of its investable amount in equity markets during the next fiscal, Union labour minister Bandaru Dattatreya said.

According to the minister, so far in the current year, the Provident Fund body invested the amount in the two index-linked Exchange Traded Funds (ETFs) — the BSE’s Sensex and the NSE’s Nifty which yielded a return of 18.13 percent.

Wall Street ends mixed 

US stocks ended mixed on Friday, even if the Nasdaq Composite touched a record intraday high. The 10-year benchmark US Treasury note yield dipped below 2.5 percent.

The Dow Jones Industrial Average fell 19.93 points, or 0.1 percent, to end at 20,914.62, the S&P 500 lost 3.13 points, or 0.13 percent, to 2,378.25 and the Nasdaq Composite added 0.24 point, or 0 percent, to 5,901.00.

The Wall St. rallied higher on the expectation of tax reforms and spending splurge on infrastructure projects. But, it looks like the priority for Trump administration is to pass a Republican-proposed healthcare bill which spooked investors.

SGX Nifty

The Nifty50 futures on the Singapore Stock Exchange were trading 10 points lower at 9,160 indicating a flat opening for the domestic market.

CL Educate IPO opens

CL Educate, the latest entrant in the initial public offering (IPO) arena aims to raise Rs 239 crore. The issue will open on March 20 and close on March 22 with a price band of Rs 500-502. The company operates segments in the education sector, which includes test preparation, K-12 and vocational training.

No visas for junior staff: Infosys

Infosys has decided not to apply for H-1B visas for junior employees, a media report said quoting sources, as the IT company comes to terms with the prospect of a tougher regulations governing the work visas.

Rupee

The Indian rupee on Friday weakened marginally against the US dollar. The rupee closed at 65.48, down 0.10 percent from its previous close of 65.41. The rupee opened at 65.46 a dollar.

The rupee has appreciated sharply on account of increase in the foreign institutional investment (FII) flows. The dollar continues to trade lower near 100 level which is its five weeks low, fuelling the emerging market asset class appeal.

"The rupee has appreciated to almost 18 months high on the expectations of a strong reform process, which will keep government’s balance sheet in good shape," Rakesh Tarway, Head of Research, Reliance Securities said.

Big news from Uttar Pradesh

The Bharatiya Janata Party (BJP) clinched a majority victory in the key Uttar Pradesh (UP) state assembly elections 2017, winning 325 out of the 403 seats.

The government appointed Yogi Adityanath who was sworn in as the 21 st Chief Minister of Uttar Pradesh on Saturday - the most populous state of the country.

Technical Setup

The index formed a bearish candle on an intraday basis as the closing level was lower than the opening level. The Nifty50 made a bearish candle on an intraday basis, but the major market trend may remain positive till it holds above psychological 9,000.

Overall, the index has been making higher top and higher bottom formation while the supports are shifting higher from 9,075 to 9,119 on an immediate basis which is giving confidence to the bulls.

Dollar Index

The dollar fell to a five-week low on Friday and remained under pressure for a third straight session after the Federal Reserve reiterated its stance of gradual rate hikes.

The dollar index slipped 0.1 percent to 100.30, after earlier falling to a five-week low. “The index was down almost 1 percent overall for the week and 1.2 percent since the Fed raised rates on Wednesday,” said a Reuters report.

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 strikes.

Fresh Put writing was seen at strike prices 9,200, 9,100, 9,000 and 8,900 which is supporting the market while intact Call writing was seen at strike prices 9,200, 9,250 and 9,300 are giving pause to its momentum.

More hedge funds closed in 2016 than in 2008

More hedge funds closed in 2016 than in any year since the financial crisis as investors moved money to larger firms and withdrew assets. Liquidations totalled 1,057 last year, the most since 2008, according to data released Friday by Hedge Fund Research Inc.

“Though assets managed by the industry rose slightly to $3.02 trillion during 2016, at the end of the year there were 9,893 funds managing that cash, including funds of hedge funds -the fewest since 2012,” said a Bloomberg report.
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