The Nifty is likely to open flat on Friday tracking muted handover from Wall Street. The Nifty touched a record high of 9450.65 but then came under selling pressure and closed 15 points higher at 9,422.40.
The trajectory of the Indian market remains intact and investors should remain long on the index with a target of 9,500 and a stop loss of 9,300-9,250.
The options data indicate a higher possibility of consolidation as it will be tough for the index to surpass strike price 9,500 in a hurry due to the high concentration of Call OI.
Maximum Call open interest (OI) of 66 lakh contracts stands at strike price 9,500 which will act as a crucial resistance level for the index in May series.
Stay tuned with Moneycontrol.com to find out what happens in currency and equity markets on today.
Wall Street Ends Flat
The US markets ended flat with a negative bias after worse-than-expected sales drop at Macy's and Kohl's sparked a selloff in shares of department stores.
Macy's dismal quarterly performance sent its shares tumbling 17 percent, taking a toll on the consumer discretionary sector, which fell 0.59 percent, said a Reuters report. The weak corporate reports left investors looking to April retail sales data due out on Friday.
The Dow Jones Industrial Average fell 0.11 percent to end at 20,919.42 points and the S&P 500 lost or 0.22 percent to 2,394.44. The Nasdaq Composite dropped 0.22 percent to 6,115.96.
The Nifty futures on the Singapore Stock Exchange were trading 10 points higher at 9,360 indicating a flat-to-positive opening for the domestic market.
Skymet Holds to Weak Monsoon View
India's only private weather agency on Thursday warned against "irrational exuberance" after a state forecast flagged heavier-than-expected monsoon rains, said a report.
The Indian Meteorological Department (IMD) told Reuters late on Tuesday that the June-September monsoon season - critical for the half of the country's farmland that is not irrigated - was likely to bring more rain than its previous forecast as concerns over the El Nino weather condition had eased.
Softbank Gets Nexus' Nod for Selling Snapdeal to Flipkart
Japan's SoftBank has secured the crucial nod from co-investor Nexus Venture Partners (NVP) for sale of Snapdeal to India's largest e-commerce firm, Flipkart, sources said.
SoftBank — the largest shareholder in Snapdeal — had secured a go-ahead from the founders and Kalaari last month. However, NVP was not in agreement over the valuation suggested by the Japanese firm and hectic parleys were held in the last few weeks to resolve the impasse.
Dollar Weakens vs Yen
The dollar fell for the first time in five days against the yen on Thursday weighed down by concerns related to the fallout of U.S. President Donald Trump's unexpected dismissal of Federal Bureau of Investigation chief James Comey also undermining the currency.
The outlook for the greenback is bright, especially after upbeat US data on Thursday solidified expectations of an interest-rate hike by the Federal Reserve next month, Reuters said in a report.
The dollar fell 0.4 percent against the safe-haven yen to 113.87 yen. Against the Swiss franc, another safe haven, the dollar fell 0.2 percent to 1.0073 francs. The dollar index was down 0.1 percent at 99.625.
Rupee Zooms 25 Paise to 64.38 Against US dollar
The rupee on Thursday rallied by 25 paise to 64.38 a dollar on heavy selling of the US currency. The forex market sentiment also got a boost from the domestic equities' record-setting spree.
The domestic unit opened substantially higher at 64.49 from Tuesday's closing of 64.63 at the Interbank Foreign Exchange market.
Cognizant H-1B hiring down 50%
More proof India’s fabled outsourcing story is fast crumbling came from Cognizant Technologies' analyst call last week. Chief Financial Officer Karen McLoughlin told analysts in the call that there was no big price differential for the same set of skills while hiring onshore, said a Moneycontrol.com report.
That is a blow to the business models of most Indian IT companies which owe their existence to wage arbitrage more than anything else. For nearly two decades, India’s USD 154 billion outsourcing industry fattened itself on a steady stream of orders from overseas firms.
HUDCO IPO oversubscribed 79.49 times
The initial public offer of state-owned HUDCO, which has seen a robust investor demand, was oversubscribed 79.49 times on the final day of offer on Thursday.
The IPO to raise Rs 1,224 crore received bids for 16,22,12,70,600 shares against the total issue size of 20,40,58,747 shares, data available with the NSE till 1915 hrs showed.
SBI to charge no-frills account holders
The country's largest public sector bank State Bank of India (SBI) will now charge for withdrawals at branches and ATMs beyond the four free transactions. This will be applicable to basic savings banks deposit account (BSBDA) holders.
BSBDA is a zero balance savings account that take care of your simple banking needs with free ATM card, monthly statement, and cheque book. It was started by the Reserve Bank of India to promote financial inclusion.
Crude Oil Up 1%
Oil prices rose 1 percent, extending Wednesday's 3 percent gains as support grew for OPEC cut a day after the US reported a big drop in inventories, said a report.
In recent days major producers like Iraq, Algeria and Kuwait have voiced support for extending last year's deal from the Organization of the Petroleum Exporting Countries and other producers to cut supply by almost 1.8 million barrels per day (BPD), said a Reuters report.US light crude oil ended the day up 50 cents, or 1.6 percent, at USD 47.83. Brent settled at USD 50.77, up 55 cents or 1.1 percent. It was the highest closing price in a week for both benchmarks.