A few cues from the market in India and abroad that could help you with your trade today.
Benchmark indices ended at fresh record closing high on May 20 after posting the biggest single-session gain since 2009. The Sensex and Nifty rallied over 3.5 percent each, as exit polls of Lok Sabha election 2019 suggested a clear majority for BJP led NDA government.
The Sensex ended the day with gains of 1,421.90 points or 3.75 percent at 39352.67, while Nifty ended up 421.10 points or 3.69 percent at 11,828.30. About 2013 shares advanced, 613 shares declined, and 155 shares remained unchanged.
Indiabulls Housing, IndusInd Bank, Adani Ports, SBI and Tata Motors were among major gainers on the Nifty, while Dr Reddy’s Labs, Zee Entertainment, Bajaj Auto, Tech Mahindra and Infosys were losers.
All sectoral indices ended in the green led by PSU banks, infra, auto, energy, FMCG, metal and pharma.
According to the Pivot charts, the key support level is placed at 11,664.87, followed by 11,501.53. If the index starts moving upward, key resistance levels to watch out are 11,918.37and 12,008.53.
The Nifty Bank index closed at 30,759.7, up 1,309.55 points on May 20. The important Pivot level, which will act as crucial support for the index, is placed at 30,304.67, followed by 29,849.63. On the upside, key resistance levels are placed at 31,021.27, followed by 31,282.84.
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 slides as Huawei fallout hits tech shares
US stocks slid on Monday as the White House’s restrictions on Chinese telecoms equipment maker Huawei Technologies Co Ltd weighed on the technology sector and raised concerns that the move would further inflame trade tensions between the United States and China.
The Dow Jones Industrial Average fell 84.1 points, or 0.33 percent, to 25,679.9, the S&P 500 lost 19.3 points, or 0.67 percent, to 2,840.23, and the Nasdaq Composite dropped 113.91 points, or 1.46 percent, to 7,702.38.
Asian shares near 4-month lows on Huawei fallout fears
Asian shares wobbled near four-month lows on Tuesday on mounting worries the White House’s black-listing of Chinese telecom giant Huawei Technologies could further inflame already tense relations between the Washington and Beijing.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade but stayed close to a four-month low touched on Friday. Japan’s Nikkei fell 0.5 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 7 points or 0.06 percent. Nifty futures were trading around 11,872-level on the Singaporean Exchange.
Oil rises on escalating US-Iran tensions; trade war concerns weigh
Oil prices edged up on Tuesday on escalating tensions between the United States and Iran and on signs that producer club OPEC will continue withholding supply this year. However, gains were checked by concerns that a prolonged Sino-US trade war could lead to a global economic slowdown.
Brent crude futures, the international benchmark for oil prices, were at USD 72.03 per barrel at 0118 GMT, up 6 cents, or 0.1 percent, from their last close. US West Texas Intermediate (WTI) crude futures were up by 12 cents, or 0.2 percent, at USD 63.22 per barrel.
Rupee records biggest gain in 2 months after exit poll results
The rupee Monday appreciated by 49 paise, the biggest single-day gain in two months, to close at 69.74 against the US dollar following sharp gains in equities and forex inflows after exit polls suggested another term for the ruling NDA government. Forex traders said investors welcomed exit poll results that predicted a thumping majority for the current BJP-led government.
At the interbank foreign exchange, the domestic unit opened at 70.36 and advanced to a high of 69.44 during the day. The currency finally settled at a nearly two-week high of 69.74, registering a rise of 49 paise or 0.70 per cent against the dollar over its previous close. On Friday, the rupee had settled at 70.23 against the US dollar.
Indian government bonds jump as exit polls predict new term for PM Modi
The exit poll results predicting the outcome of India's 17th Lok Sabha elections sent bonds soaring on May 20, as markets cheered a likely win for a second time for the PM Narendra Modi-led government.
The benchmark 7.26 percent bond maturing in 2029 ended at Rs 99.81, its highest since April 3, from Rs 99.29 at the previous close. The 10-year benchmark yield fell to 7.29 percent on May 20, from 7.36 percent at the previous close, posting its biggest single session fall since February 28.
"Market is looking for some continuity in policy rather than a populist budget. Nevertheless, the full budget will be awaited before the market can take a decisive view on which way the rates are headed," said R Sivakumar, head-fixed income, Axis Mutual Fund. He said markets will see whether the targets announced in the interim budget are maintained.
US unlikely to suffer big damages from China trade dispute: Fed
Trade tensions with China need to linger for an extended period to cause real damage to the United States economy, St. Louis Fed President James Bullard said in remarks published on Monday.
Engaged in a lengthy trade standoff, the United States and China have raised tariffs on a range of goods, raising fears that their conflict would develop into a trade war, damaging the global economy and worsening its recent growth wobble.
Sebi proposes changes to norms for municipal bonds issuance
The Securities and Exchange Board of India (Sebi) on May 20 proposed changes to regulations for the issuance of municipal bonds as part of efforts to enable fundraising by bodies similar to municipalities.
Besides, the minimum subscription amount for municipal bonds on a private placement basis is also proposed to be reduced to Rs 10 lakh from the current Rs 25 lakh in a bid to align it with corporate bonds.
96 companies to report March quarter numbers today
As many as 96 companies will declare their results for the March quarter which include names like Bharat Financial, BOSCH, CARE Ratings, DLF, Tech Mahindra, Timken India, Vaibhav Global, KEI Industries, JSPL, and Aarti Industries among others.
Two stocks under ban period on NSE
For May 20, Jet Airways and Reliance Capital are under a ban. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agenciesSubscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.