A look at cues from market in India and abroad to help you with your trade today.
The Nifty 50 continued to gain for the fifth consecutive session and reclaimed 10,900 levels intraday on December 17, driven by buying across major sectors and positive Asian cues.
The 30-share BSE Sensex rallied 307 points to 36,270.07 while the Nifty 50 gained 82.90 points to close at 10,888.40, forming a bullish candle on the daily charts.
As the Nifty has reached the 10,800-10,900 zone, a bit of profit taking amid consolidation could be possible especially ahead of Federal Reserve's last policy meeting of the year, experts said.
India Volatility Index fell by 4.32 percent to 14.50 levels. VIX has seen a sharp cut of 32.50 percent in last five sessions which suggests now bulls are getting a grip on the market with the expectation of limited downside.
According to Pivot charts, the key support level is placed at 10,855.3, followed by 10,822.3. If the index starts moving upward, key resistance levels to watch out are 10,910.8 and then 10,933.3.
The Nifty Bank index closed at 27,015.80, up 189.80 points on December 17. The important Pivot level, which will act as crucial support for the index, is placed at 26,932.46, followed by 26,849.13. On the upside, key resistance levels are placed at 27,075.26, followed by 27,134.73.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
S&P 500 hits 14-month low on economic jitters ahead of Fed meeting
Wall Street’s major indexes all slid more than 2 percent on Monday, with the benchmark S&P 500 closing at its lowest in 14 months, on concerns about slowing economic growth ahead of a highly anticipated decision from the Federal Reserve this week on the course of US interest-rate hikes.
The S&P 500 hit its lowest since October 2017 to breach lows reached during its sell-off in February, having wiped out about $3.4 trillion of market value since late September. The small-cap Russell 2000 index confirmed a bear market, having fallen more than 20 percent from its August 31 closing high.
The Dow Jones Industrial Average fell 507.53 points, or 2.11 percent, to 23,592.98, the S&P 500 lost 54.01 points, or 2.08 percent, to 2,545.94 and the Nasdaq Composite dropped 156.93 points, or 2.27 percent, to 6,753.73.
Asian stocks slide as global growth worries deepen
Asian share markets stumbled on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.25 percent in early trade while Japan’s Nikkei tumbled 1.5 percent. On Monday, MSCI’s broadest gauge of the world’s stock markets, ACWI, slumped to its weakest level since May 2017, having declined 16 percent from a top hit on January 29.
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 9 points or 0.08 percent. Nifty futures were trading around 10,904-level on the Singaporean Exchange.
Govt tussle with RBI could undermine long-term financial stability: S&P
Terming the exit of Urjit Patel as credit negative, S&P Global Ratings said the increasing involvement of the government in the affairs of the RBI could undermine the hard-fought improvements in the banking system over the past few years.
“In particular, S&P Global Ratings views as credit negative the circumstances leading to the recent resignation of Urjit Patel, governor of the Reserve Bank of India (RBI). We await any changes to banking system regulation at the next RBI board meeting in January 2019,” it said.
US oil prices drop 1 percent on oversupply fears
US oil prices fell 1 percent on Tuesday after slipping below $50 a barrel in the previous session, with reports of a big climb in US inventories and forecasts of record shale output stoking worries about oversupply.
Concerns around future oil demand amid weakening global economic growth and doubts on the impact of planned OPEC-led production cuts were also hurting prices, traders said.
US West Texas Intermediate (WTI) crude futures were at $49.35 per barrel at 0035 GMT, down 1.06 percent, or 53 cents, from their last settlement. US crude prices have tumbled more than 35 percent since early October and are currently at levels not seen since October 2017.
Sebi lays down more robust risk management framework for equity derivatives
Regulator Sebi on Monday put in place a more robust risk management framework with regard to margin system for the equity derivatives segment. The framework has been prepared on the basis of recommendation by Sebi's Risk Management Review Committee.
Now, the payment of mark to market margin (MTM) would mandatorily be made by all the members on T+0 basis -- before start of trading on the next day, as per a circular.
Currently, stock exchanges and clearing corporations offer a choice to the trading members to opt for payment of MTM either before the start of trading on the next day (T+0) or on the next day (T+1). This would be with scaled up margins to cover the potential for losses over the time elapsed in the collection of MTM.
Rupee settles 34 paise higher at 71.56 against US dollar
The Indian rupee on Monday recovered by 34 paise to close at 71.56 against the US dollar as forex market sentiments were driven by the country's narrowing trade deficit in November as also smart gains in domestic equities.
Besides, the American currency's weakness against its major rivals globally helped the rupee further its gains. According to commerce ministry data, India's trade deficit came down to USD 16.67 billion in November 2018 from USD 17.13 billion in October this year. At the Interbank Foreign Exchange, the rupee opened higher at 71.84 a dollar and soon gathered momentum to touch a high of 71.51.
Sebi makes investing in MFs less pricey; puts cap on total expenses
In a major overhaul of the fee structure that mutual funds charge from investors, markets regulator Sebi has issued new norms to cap total expenses for investment in such funds at 2.25 percent.
Rationalising the total expense ratio (TER), the fee that mutual funds (MF) collect from investors every year to manage their money, Sebi said the new fee structure would come into force from April 1, 2019. The move comes after the board of Sebi cleared a proposal in this regard in September.
The regulator has capped the maximum TER for closed-ended equity schemes at 1.25 percent, and other than equity schemes at 1 percent.
Studds Accessories gets Sebi's go-ahead for IPO
Studds Accessories Ltd, manufacturer of helmets and two-wheeler accessories, has received markets regulator Sebi's approval to float an initial share sale.
The company, which had filed its draft papers with the markets regulator in August seeking its clearance for the initial public offer (IPO), obtained Sebi's observations on December 14, latest data with the capital markets watchdog showed.
Studds Accessories' IPO comprises fresh issuance of shares worth Rs 98 crore besides an offer for sale of 39.39 lakh equity shares by promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other existing shareholders, according to the draft papers. Edelweiss Financial Services and IIFL Holdings will manage the company's public issue.
4 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For December 18, 2018, Adani Enterprises, Adani Power, Jet Airways and Reliance Capital are present in this list.With inputs from Reuters & other agencies