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

Mumbai: People look at a screen displaying the stock prices on the facade of the Bombay Stock Exchange (BSE) building in Mumbai on Monday. The market plunged by over 100 points in early trade at the begining of the year. PTI Photo by Mitesh Bhuvad (PTI1_2_2017_000042B)

The Nifty which closed above its crucial resistance level of 9,133 in the previous trading session should be able to reclaim 9,150 and may make a dash towards 9,200 in morning trade backed by positive global and domestic cues on Thursday.

The market could remain volatile due to March F&O expiry but it should not turn negative. Hence, investors should stay long as long as Nifty holds 9,075 levels on closing basis.

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

The market is likely to react positively on Thursday after the Lok Sabha passed four crucial legislations to introduce countrywide Goods and Services Tax (GST) bringing India closer to a unified tax regime.

The Lok Sabha passed the Central GST Bill, 2017 (CGST Bill), Integrated GST Bill, 2017 (IGST Bill), Union Territory GST Bill, 2017 (UTGST Bill) and the GST (Compensation to the States) Bill 2017 after more than eight hours of debate.

GST related stocks will be in focus as the passage of the Bills marks a big step forward in India’s plans to rollout GST from July 1.

It looks like the Wall Street has tempered its expectations for any big bang reforms such as tax cuts from in the US President after healthcare bill failed to impress Congress.

The next big trigger for US stocks will be first-quarter earnings which could support lofty valuations for stocks. First-quarter earnings for S&P 500 companies are expected to rise 10.1 percent, according to Thomson Reuters I/B/E/S.

The Dow Jones Industrial Average fell 42.18 points, or 0.2 per cent, to 20,659.32, the S&P 500 gained 2.56 points, or 0.11 per cent, to 2,361.13 and the Nasdaq Composite added 22.41 points, or 0.38 per cent, to 5,897.55.

The Nifty futures on the Singapore Stock Exchange were trading 33 points higher at 9,177 indicating a flat opening for the domestic market.

Trump to Unveil $1 Trillion Infrastructure Plan:

U.S. Transportation Secretary Elaine Chao on Wednesday said the Trump administration would unveil a $1 trillion infrastructure plan later this year, but she did not offer details of funding for projects, said a report.

Chao said at an event at the department's headquarters that the infrastructure initiative would include "a strategic, targeted program of investment valued at $1 trillion over 10 years. But, investors have been growing more sceptical that the infrastructure plan will win approval this year.

Jeff Bezos, founder of Amazon has leapt past Amancio Ortega and Warren Buffett to become the world’s second-richest person, said a Bloomberg report.

Bezos, 53, added $1.5 billion to his fortune as Amazon.com Inc. rose $18.32 on Wednesday, the day after the e-commerce giant said it plans to buy Dubai-based online retailer Souq.com.

Bezos has a net worth of $75.6 billion on the Bloomberg Billionaires Index, $700 million more than Berkshire Hathaway Inc.’s Buffett and $1.3 billion above Ortega, the founder of Inditex S.A. and Europe’s richest person, said the report.

Payment banks could be staring at an even more uncertain future with the launch of Kotak Mahindra Bank's 811 digital banking service. On Wednesday, the bank unveiled its ambitious digital, paperless savings account called 811 which can be opened in five minutes.

The bank is expecting to double its current 8 million customer base on the back of 811 in less than 18 months which is a positive sign. Although Street was anticipating a news about a merger and the share could see some kneejerk reaction.

The fundamentals of Kotak Mahindra Bank remain robust and in case it falls in morning trade on Thursday, it is still a good buy on dips stocks, say experts.

The rupee on Wednesday stormed to a new 17-month high and closed above 65, a level not seen since October 2015, on heavy dollar selling by speculative traders and exporters.

The domestic currency finally ended the day at 64.91, up 13 paise. The home currency hit an intra-day high of 64.88, triggering panic dollar selling by exporters.

The appreciation of rupee could continue in the short term, but in the long-term, experts feel that the rupee will weaken against the USD.

“We see this trend continuing and might see the Rupee appreciate up to the 63 levels, this works favorably for foreign investors who are buying up Indian debt on the back of higher returns caused by a currency move in Rupees favour,” Nikhil Kamath, Co-Founder & Head of Trading, Zerodha told Moneycontrol.com.

After Deloitte, another Big4 accounting firm Ernst & Young (EY) will carry out a forensic audit of trading systems of the National Stock Exchange (NSE), India's largest bourse, said a report quoting sources familiar with the development.

NSE is fighting allegations of giving unfair access to certain brokers for high-frequency trading and collocation facility -a charge that was triggered by a series of whistleblower letters.

Oil prices rallied Wednesday, settling at their highest level in roughly three weeks after data from the Energy Information Administration showed a weekly rise in US crude inventories to 867000 last week, said a report.

Brent crude futures LCOc1 settled $1.09, or 2.1 percent, higher at $52.42 a barrel after hitting a session high of $52.46, the highest since March 16.

The Nifty, which started with a small gap of over 20 points in the previous session and managed to close above its crucial resistance level of 9,133, is a bullish sign for the market. It made a bullish candle as the closing level was higher than the opening level.

It is important to note that the index is already up by 2.29 per cent in this series and is trading 100 points higher from its volume-weighted average price (VWAP) which indicates that bulls have an upper hand.

Based on the options data, March series is likely to expire in the 9,100-9,200 range. However, any risk of a steep correction will only become valid if the index slips below 9,100 levels.

Investors who are holding long positions should continue to maintain them as long as Nifty50 holds above 9,075.