The Nifty50 recouped losses and closed above its crucial resistance level of 10,900 on January 18, attracting buying at lower levels for the second day in a row which is a positive sign for the bulls.
The index formed a ‘Small Bearish’ candle on intraday on daily charts as the closing level was lower than the opening level while on the weekly charts, the index formed a bullish candle for the second consecutive week in a row.
The index bounced back after hitting its 5-day exponential moving average (EMA) to close above 10,900.
Consistent buying at lower levels suggest the bulls are here to stay and investors who went long can continue with their positions as long as Nifty holds 10800, say experts.
According to pivot charts, the key support level is placed at 10,863.4, followed by 10,819.8. If the index starts moving upward, key resistance levels to watch out are 10,939.4 and then 10,971.8.
The Nifty Bank index closed at 27,456.7. The important pivot level, which will act as crucial support for the index, is placed at 27,386.13, followed by 27,315.56. On the upside, key resistance levels are placed at 27,551.83, followed by 27,646.97.
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 extends rally on US-China trade optimism
US stocks rallied on Friday, helping Wall Street’s major indexes advance for the fourth consecutive week, as increased hopes the United States and China
would resolve their trade dispute lifted shares across sectors.
The Dow Jones Industrial Average rose 336.25 points, or 1.38 percent, to 24,706.35, the S&P 500 gained 34.75 points, or 1.32 percent, to 2,670.71 and the Nasdaq Composite added 72.77 points, or 1.03 percent, to 7,157.23.
Asia holds breath for China data, Brexit news
Asian markets were in limbo early on Monday ahead of data likely to show the Chinese economy slowed at the end of last year, underlining the urgent need for more stimulus as Beijing wrestles with the United States over trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, after rising 1.6 percent last week. E-Mini future for the S&P 500 were 0.1 percent lower, though trade was light with the US on holiday. Japan's Nikkei added 0.7 percent, helped by a recent pullback in the yen.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 23 points or 0.21 percent. Nifty futures were trading around 10,954-level on the Singaporean Exchange.
Rupee settles 16 paise down at 71.19 vs USD
The rupee on Friday weakened by 16 paise to close at 71.19 against the US dollar amid rise in demand for the greenback from exporters and unabated
increase in global crude oil prices.
Forex traders said foreign fund outflows, gain in domestic equity market and stronger dollar against its key rival currencies impacted the rupee trading pattern.
At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 71.12 and fell further to touch the day's low of 71.24.
Oil falls ahead of China data, but OPEC-led cuts support
Oil prices dipped on Monday, weighed down by expectations that China will report its weakest economic growth in almost three decades amid waning domestic demand and painful US tariffs.
Still, analysts expect oil prices to be relatively well supported this year by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia.
International Brent crude oil futures were at $62.43 per barrel at 0132 GMT, down 27 cents, or 0.4 percent, from their last close. US West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.4 percent, at $53.58 a barrel.
Forex reserves swell by $1.26 bn to $397.35 bn
The forex reserves continued its upward march and increased by USD 1.267 billion to USD 397.351 billion in the week to January 11, aided by a rise in core currency assets and value of gold, the RBI said on Friday. The overall kitty had swelled by USD 2.68 billion to USD 396.084 billion in the previous reporting week.
In the reporting week, foreign currency assets -- a major component of the overall reserves -- rose by USD 1.087 billion to USD 371.379 billion, the Reserve Bank said.
India likely to surpass UK in the world’s largest economy rankings: Report
India is likely to surpass the United Kingdom in the world’s largest economy rankings in 2019, according to a report by global consultancy firm PwC. As per the report, while the UK and France have regularly switched places owing to similar levels of development and roughly equal populations, India’s climb up the rankings is likely to be permanent.
PwC’s Global Economy Watch report projects real GDP growth of 1.6% for the UK, 1.7% for France and 7.6% for India in 2019. "India and France are likely to surpass the UK in the world’s largest economy rankings in 2019, knocking it from fifth to seventh place in the global table," the report said.
According to World Bank data, India became the world's sixth largest economy in 2017 surpassing France and was likely to go past the UK which stood at the fifth position.
FPI outflow crosses Rs 4,000 crore in January so far
Foreign investors have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country.
This comes following a collective net inflow of over Rs 17,000 crore in the capital markets -- both equity and debt -- by Foreign Portfolio Investors (FPIs) during November and December. Prior to that, they had pulled out a massive Rs 38,905 crore in October.
According to data available with the depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from the debt market, taking the total outflow to Rs 4,040 crore during January 1-18.
26 companies to report Q3 numbers today
As many as 26 companies will declare their results for the quarter ended December on Monday which includes names like Amtek Auto, HDFC AMC, Hindustan Zinc, JustDial, Kotak Mahindra Bank, Union Bank of India etc. among others.
2 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 January 21, Adani Power and Jet Airways is present in this list.
With inputs from Reuters & other agencies
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