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The Nifty closed flat on Tuesday with a negative bias, but triple digit cut on Wall Street may push the index below 9,100 in opening trade on Wednesday. The index is still a buy on dips as long as it holds above 9,075-9,087 levels.
Here’s are top cues from domestic as well as international markets which could have a bearing on D-Street:
Wall Street ends lower:
US markets fell sharply in overnight trade as investors got spooked on concerns that President Donald Trump might not be able to do tax cuts and other infra reforms which propelled the market to record highs in recent months.
The S&P 500 and Dow Jones Industrial Average lost over 1 percent in their worst one-day performances since before Trump's election victory in November said a report.
The Dow Jones Industrial Average dropped 1.14 percent to end at 20,668.01 points, while the S&P 500 lost 1.24 percent to 2,344.02. The Nasdaq Composite fell 1.83 percent to 5,793.83.
SGX Nifty:
The Nifty futures on the Singapore Stock Exchange were trading 43 points lower at 9,108 indicating a negative opening for the domestic market.
World stocks seen as most overvalued in 17 years: Survey
World stocks are their most expensive in 17 years, but bond yields will need to be much higher than they are currently to trigger an equity bear market, a media report said referring to the monthly fund manager survey showed on Tuesday.
Global investors' allocation to stocks hit a two-year high, according to the poll, with a net 48 percent now overweight the market. A net 34 percent of fund managers now thing equities are overvalued, the highest proportion since 2000, BAML said.
Shankara Building Products' IPO to hit D-St:
Shankara Building Products (SBPL) IPO is going to hit capital markets on Wednesday (March 22) to raise around Rs 350 crore. The company has fixed a price band of Rs 440-460 per equity share with face value of Rs 10.
Nirmal Bang has recommended to "Subscribe ". On the valuation front, at the upper end of the price band of Rs 460, as per our estimates, SBPL is offered at PE of 18x its FY17E EPS of Rs 25 and 15x its FY18 EPS of 31.
CL Educate IPO closes today:
CL Educate, which owns brand Career Launcher, saw its IPO subscribed 77% on the second day of the issue on Tuesday. The issue will close today for subscription.
The initial public offering received bids for 25,71,053 shares against the total issue size of 33,32,000 shares, data available with the NSE till 5 pm showed.
The Qualified institutional buyers (QIBs) segment was oversubscribed 1.97 times while that of non-institutional investors 4%. Retail investors category received 40% subscription.
Dollar index:
The dollar index, which measures the greenback against a basket of six major currencies, dipped below the 100 level for the first time since Feb. 7. The dollar was down 0.73 percent at 111.73 yen.
The dollar moved higher after Donald Trump's US presidential win and his pledge on tax cuts, deregulation and infrastructure spending.
Crude Oil hits November low:
Oil prices fell on Tuesday, with US crude dropping to its lowest since November, as concerns about new supplies overshadowed the latest talk by OPEC that it was looking to extend output cuts beyond June, said a media report.
Brent futures for May delivery fell 66 cents, or 1.3 percent, to settle at $50.96 a barrel, its lowest since March 14.
Rupee closes near 17-month high:
The Indian rupee on Tuesday rebounded and closed near 17-month high against the US dollar. It closed at 65.28 a dollar, up 0.12 percent from its Monday’s close of 65.36. The rupee opened at 65.40 a dollar and touched a high and a low of 65.21 and 65.44, respectively.
Technical Check:
The Nifty moved in a tight range with a negative bias throughout the trading session on Tuesday but bulls managed to push the index towards its opening level which made a ‘hammer’ like pattern on the daily candlestick charts.
Formation of a hammer type pattern after a bearish belt hold in the previous session is a positive sign for investors. It suggests that market is attempting to determine a bottom. Investors can create long positions on dips for a target of 9,218-9,250 which was its recent record high.
Traders to create long positions by making use of current dip for initial targets placed around 9,218 with a stop below 9,030 on a closing basis, suggest experts.
Gold Climbs to near 3-week high:
Gold rallied to near 3-week high after U.S. interest rate hikes pushed the dollar to a six-week low versus the euro. Weakness in the U.S. currency helped pull the metal off early lows hit after a sharp drop in Asian trading hours.
Spot gold was at USD 1,242.11 an ounce, up 0.8 percent, after earlier touching its highest since March 2 at $1,242.81 an ounce, said a report.
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