A few cues from the market in India and abroad that could help you with your trade today.
The 30-share BSE Sensex gained 142.09 points or 0.40 percent to end at 35,898.35 while the 50-share NSE Nifty rose 54.40 points or 0.51 percent to close at 10,789.90, forming a bullish candle for second day.
"Nifty extended its rebound and retested the crucial hurdle at 10,800. It opened flat but gradually moved higher as session progressed, thanks to favourable global cues and rebound in select index majors. Mostly, sectoral indices traded in tandem with the benchmark index and settled higher. Besides, the market breadth too was inclined towards advancing side."
"Markets are currently dancing to the global tunes and we feel it may continue for some time, in absence of any major event on local front. Nifty has again reached closer to its immediate and crucial hurdle of 10,800 and its sustainability would trigger further rebound," said Jayant Manglik, President - Retail Distribution, Religare Broking.
The Nifty Midcap and Smallcap indices gained 0.8 percent and 1 percent respectively.
According to Pivot charts, the key support level is placed at 10737.93, followed by 10686.07. If the index starts moving upward, key resistance levels to watch out are 10825.23 and then 10860.67.
The Nifty Bank index closed at 27052.4, up 96.9 points on February 21. The important Pivot level, which will act as crucial support for the index, is placed at 26983.3, followed by 26914.2. On the upside, key resistance levels are placed at 27111.2, followed by 27170.
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.
Wall Street breaks run of gains as economic data disappointsWeak economic reports pressured US stocks on Thursday after the market’s recent run of gains, and a drop in healthcare shares added to the bearish
momentum. The Commerce Department said new orders for key US-made capital goods unexpectedly fell in December, pointing to a further slowdown in business spending on equipment that could crimp economic growth.
The Dow Jones Industrial Average fell 103.81 points, or 0.4 percent, to 25,850.63, the S&P 500 lost 9.82 points, or 0.35 percent, to 2,774.88 and the Nasdaq Composite dropped 29.36 points, or 0.39 percent, to 7,459.71.
Asian shares tread water as investors watch trade talks
Shares in Asia were flat in early trade on Friday following a fall on Wall Street, with a deteriorating global economic outlook outweighing more signs of progress in trade talks between China and the United States.
Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent. Australian shares gained 0.5 percent and Japan’s Nikkei stock index was 0.3 percent lower.
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 19 points or 0.18 percent. Nifty futures were trading around 10,794-level on the Singaporean Exchange.
Oil prices dip as US crude output hits record 12 million barrels per day
Oil prices fell on Friday after the United States reported its crude output hit a record 12 million barrels per day (bpd), undermining efforts by Middle East dominated producer club OPEC to withhold supply and tighten global markets.
US West Texas Intermediate (WTI) crude oil futures were at $56.85 per barrel at 0010 GMT, down 11 cents, or 0.2 percent, from their last settlement.
Rupee drops 13 paise to 71.24 against dollar
The rupee skidded by 11 paise to close at 71.24 against the US dollar Thursday as rising oil prices and a strengthening greenback weighed on the market sentiment.
At the Interbank Foreign Exchange (forex) market, the domestic unit opened strong at 71.06 and rose to 70.91. However, it could not hold on to the gains and fell to a low of 71.29 before finally ending at 71.24 -- a fall of 13 paise. The rupee had closed at 71.11 against the US dollar Wednesday.
RBI MPC minutes: Panel member says interest rates could fall by more than 0.5%
The Reserve Bank of India (RBI) on February 21 released the minutes of the meeting for the 15th Monetary Policy Committee (MPC) meeting that took place between February 5 to February 7.
According to the minutes, Ravindra Dholakia said, "I think space has opened up for a substantial rate cut of about 50 to 60 bps going forward."
Dholakia said that oil prices are expected to stabilize at about $60 to $65 per barrel, food prices are likely to remain subdued over the next 3-4 quarters, and the nflation rates excepting food and fuel are also predicted to fall from its current level of about 5.9 percent in Q3 FY19 to about 5.1 percent in Q3 FY20.
Capital requirement of PSBs to shrink to about Rs 25K cr in FY20: Moody's
Moody's Investors Service on February 21 said the government fund requirements of public sector banks will shrink substantially to about Rs 20,000-Rs 25,000 crore in the year ending March 2020 (fiscal 2020) on improving asset quality.
The government on February 20 announced to pump in an additional Rs 48,239 crore in 12 public sector banks (PSBs) in this fiscal to help them maintain regulatory capital requirements and finance growth plans. In the current financial year, Rs 1,00,958 crore has been infused into these banks.
"Moody's estimates that PSBs will require a total of about Rs 20,000-25,000 crore in external capital in fiscal 2020 to maintain CET-1 (common equity Tier-1) ratios of about 8.5 percent. This is a significant reduction from the Rs 1.96 lakh crore infused by the government in the past two years," it said in a statement.
EPFO Board recommends interest rate of 8.65% for FY19
The Board of retirement fund body Employees’ Provident Fund Organisation (EPFO) has recommended an interest rate of 8.65 percent for FY19, 10 basis points higher than FY18, to its six crore subscribers.
This is the first time since FY16 that the interest rate has been raised. The EPFO Board also discussed the issue of raising the minimum pension under the employee pension scheme (EPS). However, a decision on the matter has been deferred until the next board meeting.
Sebi revises minimum haircut for government securities used as collateral
Sebi on Thursday revised the minimum haircut for government securities (G-sec) that are used as collateral in the market. Generally, haircut refers to the difference between the market value of the particular securities and the value at which the same has been kept as collateral. Now, there would be three minimum haircut slabs depending on the type and tenure of the government securities, according to a circular.
The haircut would be at least 2 percent for treasury bills and liquid government securities having maturity period of less than three years. The slab would be a minimum 5 percent for those securities having maturity period of more than three years.
10 stock 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 February 22, 2019 Adani Enterprises, Allahabad Bank, IDBI, Jet Airways, Kaveri Seed, PC Jeweller, Reliance Capital, Reliance Infra, Reliance Power
and Adani Power is present in this list.With inputs from Reuters & other agencies