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The bulls failed to remain in control of the market on Thursday amid weak global cues, after the US Federal Reserve raised its fed funds rate by 25 basis points on Wednesday.
The Nifty held on to its crucial support of around 10,800, and made a bearish 'Hammer'-like pattern on the daily chart. Investors are advised to remain cautious as a decisive breach of 10,767 on Friday could extend the decline. Resistance is placed at 10,900-10,930, experts said.
The Nifty, which opened at 10,832, rose marginally to hit an intraday high of 10,833.70. It hit an intraday low of 10,773.55 before ending the session at 10,808, down 48 points.
India VIX fell by 4.31 percent to 12.09. The Bank Nifty has been forming small-bodied candles from the last couple of sessions, indicating the absence of follow through on both sides. It has to continue to hold above 26,500 to witness an up move towards 26,750, experts said.
According to Pivot charts, its key support is placed at 10,776.43, followed by 10,744.87. If the index starts moving upward, key resistance levels to watch out are 10,836.63 and 10,865.27.
The Nifty Bank index closed at 26,562.2. The important Pivot level, which will act as a crucial support for the index, is placed at 26,502.47, followed by 26,442.73. Key resistance levels are placed at 26,622.57, followed by 26,682.93.
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 falls as Fed signals two more hikes this year
US stocks ended a choppy session lower on Wednesday after the US Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes this year.
The Dow Jones Industrial Average fell 119.53 points, or 0.47 percent, to 25,201.2, the S&P 500 lost 11.22 points, or 0.40 percent, to 2,775.63 and the Nasdaq Composite dropped 8.10 points, or 0.11 percent, to 7,695.70.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 19.5 points or 0.18 percent. Nifty futures were trading around 10,795-level on the Singaporean Exchange.
Asian shares shaky as US readies China tariffs
Asian shares wobbled on Friday as investors braced for US tariffs against China, while the euro flirted with two-week lows after a cautious European Central Bank indicated it would not raise interest rates for some time.
ECB keeps interest rates steady
The European Central Bank said on Thursday it will end its unprecedented bond purchase scheme by the close of the year, taking its biggest step in dismantling crisis-era stimulus a decade after the start of the euro zone's economic downturn.
Signalling that the move would not mean rapid policy tightening in the coming months, the bank also said that interest rates would stay at record lows at least through the summer of 2019, suggesting protracted support for the economy, even if at a lower level.
Oil holds a narrow range as OPEC meeting looms
Oil prices were little changed in early Asian trade on Friday, as investors eyed a key OPEC meeting in Vienna and Saudi Arabia and Russia, architects of a producer deal to cut output, indicated they want production to rise.
Brent crude was down 3 cents at $75.91 a barrel, after settling down 80 cents the session before. US West Texas Intermediate crude was up 6 cents, or 0.1 percent, at USD 66.95 a barrel, having settled up 25 cents. It touched a two-week high of USD 67.16 on Thursday.
US treasury yields jump
US Treasury yields jumped and Wall Street reversed earlier gains to close lower on Wednesday, after the Federal Reserve raised interest rates and signaled that two more hikes could be coming this year.
Benchmark 10-year U.S. Treasury notes last fell 6/32 in price to yield 2.9774 percent, from 2.957 percent late on Tuesday. The 30-year bond last fell 3/32 in price to yield 3.0967 percent, from 3.092 percent Tuesday.
The Asia Pacific MSCI index edged down 0.2 percent, with most regional markets shrugging off a strong close on Wall Street. But Japan’s Nikkei average added 0.5 percent.
Trump ready to impose tariffs on about $50 bn in Chinese goods: Official
US President Trump has made up his mind to impose “pretty significant” tariffs on Chinese goods, an administration official said on Thursday, as Beijing warned that it was ready to respond if Washington chose to ratchet up trade tensions.
Trump is due to unveil revisions to his initial tariff list targeting USD 50 billion of Chinese goods on Friday. The list will contain 800 product categories, down from 1,300 previously, according to another administration official and an industry source familiar with the list.
Also Read: Trade Setup for Friday: Top 15 things to know before Opening Bell
Sebi plans revised norms for recovery of investors' money
Sebi plans to put in place revised norms for recovering investors' money in cases of illegal collective investment schemes, wherein a registered insolvency professional will be appointed as administrator to undertake sale of assets. A senior official said the regulator is looking to revise the procedures to be followed after passing of orders in cases related to unregistered collective investment schemes.
In case an entity is not traceable or is not complying with Sebi directions, the recovery officer can appoint an administrator for the purpose of selling the properties attached. According to the official, only an entity registered with the IBBI as insolvency resolution professional would be considered eligible for appointment as administrator.
NSE head says bourse could get listed in FY19
Amid a controversy of co-location server issues for the country's leading bourse, the National Stock Exchange, its MD and CEO Vikram Limaye yesterday expressed hope that it would get listed in the 2018-19 fiscal.
"We will get the co-location issues resolved and it will be behind us. My hope is we will be able to get listed in this fiscal," Limaye said here on the sidelines of an interactive session with Indian Chamber of Commerce president Shashwat Goenka.
All eyes on TCS board meet
The board of Tata Consultancy Services will meet today to consider a proposal for buyback of its shares. Market participants expect the buyback to be worth at least Rs 10,000 crore. It is expected the buyback price would not be at a huge premium.
TCS did not disclose any details, including the number of shares to be bought back and the price. Last year, the company had launched a RS 16,000-crore buyback, and followed it up with a 1:1 bonus issue in April this year.
Sebi considers capping tenure of stock exchanges' CEOs
Regulator Sebi is considering capping tenure of stock exchange CEOs to maximum two terms of five years each, as part of an overhaul of regulations for ownership and governance norms for market infrastructure institutions.
Besides, the watchdog is planning to bring in new ownership norms for setting up of stock exchanges as it feels that entry of new players can benefit investors with better product choices and effective cost structures, a senior official said.
Govt directs all unlisted companies to dematerialise shares by Sept
The government plans to make it compulsory for unlisted companies to get their shares dematerialised by September, according to government officials. The corporate affairs ministry wants all unlisted companies with paid-up capital of more than Rs 50 million to digitalise shares by June-end. Others can do so by September.
The government is also in discussion with the NSDL and the CSDL to fix enrolment rates for these companies. The ministry has asked these registries to reduce joining fees.
Rupee edges up 3 paise to 67.62
The rupee yesterday withstood the headwinds of CAD worries and a hawkish Federal Reserve rate hike to close higher by 3 paise at 67.62 against the US currency, cutting short its two-day decline. Headwinds in the form of consistent widening of current account deficit (CAD), rising inflation worries accompanied by heavy portfolio outflows kept the forex market sentiment shaky.
The rupee resumed higher at 67.56 from the last close of 67.65 at the interbank foreign exchange market on fresh selling of the greenback by banks and exporters.
4 stocks under ban period on the NSE
Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For June 15, Balrampur Chini, DHFL, Jet Airways and Just Dial are present in the F&O ban list.
With inputs from Reuters & other agencies
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