It seems like the index is stuck in a range of 100-150 points and now a breakout above 10,850-10895, or a breakdown below 10,700 could fuel selling pressure on D-Street. Investors are advised to stay cautious or at best remain neutral, suggest experts.
The Nifty also broke below two key short-term moving averages namely 5-days exponential moving average (EMA) placed at 10,775 and 13-EMA at 10,764.
The Nifty which opened flat rose marginally to hit an intraday high of 10,831. It failed to hold on to momentum and hit an intraday low of 10,753 before closing at 10,762, down 59 points.
Bank Nifty formed an Inside Bar pattern as it moved inside the range of the last session. The index has to now hold above 26,500 zones to witness an up move towards 26,750 and then towards 27,000 zones while a hold below 26,450 could see a dip towards 26,250 zones suggest experts.
“Monday’s price action on Nifty with a Bearish Candle formation post Friday’s strong up move is clearly suggesting that this market is directionless and is in need of a breakout on either of the side for a directional move,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
India VIX moved up by 4.68 percent at 12.58 levels. On the options front, maximum Put OI is placed at 10,700 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 and 10,900 strikes.
According to Pivot charts, the key support level is placed at 10,733.33, followed by 10,704.17. If the index starts moving upwards, key resistance levels to watch out are 10,811.33 and 10,860.17.
The Nifty Bank index closed at 26,609.7 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 26,520.16, followed by 26,430.63. On the upside, key resistance levels are placed at 26,752.06, followed by 26,894.43.
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 pummelled by escalating trade threats
An escalating trade dispute between the United States and other leading economies battered US stocks on Monday, handing the S&P 500 and Nasdaq their steepest losses in more than two months.
The Dow ended the session below its 200-day moving average for the first time since June 2016. It fell 328.09 points, or 1.33 percent, to 24,252.8, the S&P 500 lost 37.81 points, or 1.37 percent, to 2,717.07 and the Nasdaq Composite dropped 160.81 points, or 2.09 percent, to 7,532.01.
Asia stocks extend global slide on intensifying trade row
Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent. Japan’s Nikkei lost 0.8 percent, South Korea’s KOSPI fell 0.55 percent and Australian stocks dropped 0.6 percent.
Oil prices rise on uncertainty over Libyan crude exports
Oil prices rose on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag. Brent crude
futures were at USD 74.95 per barrel up 22 cents, or 0.3 percent from their last close. US West Texas Intermediate (WTI) crude futures were at USD 68.33 a barrel, up 25 cents, or 0.4 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 25.5 points or 0.24 percent. Nifty futures were trading around 10,735-level on the Singaporean Exchange.
Trump officials send mixed signals on China investment curbs
Conflicting signals from the Trump administration over proposed restrictions on foreign investment in US technology companies, along with news that recently imposed import tariffs are starting to disrupt supply chains, sent global stock markets tumbling on Monday.
Proposed restrictions on foreign investment in U.S. technology would not just be confined to China, according to U.S. Treasury Secretary Steven Mnuchin. The forthcoming restrictions would apply “to all countries that are trying to steal our technology,” he said.
BSE, NSE put in place additional surveillance measures for stocks
BSE and NSE have put in place a new framework to shortlist and review stocks under enhanced surveillance measures. Under the new guidelines, public sector enterprises and public sector banks will be excluded from the process of shortlisting of securities under additional surveillance measures (ASM), the exchanges said in separate circulars.
The exchanges said these criteria will be applicable for selection of stocks in the ASM framework. These include high low price variation (based on corporate action adjusted prices) of a scrip is 200 percent or more in last three months and concentration of top 25 clients in the last three months is 30 percent or more.
Rupee recovery stalls on fresh dollar demand, plunges 29 paise
Halting its three-day rally, the rupee took a severe beating yesterday and ended sharply lower by 29 paise at 68.13 against the US currency due to month-end demand for the American unit from importers and banks.
The domestic currency remained under pressure as fears of an escalating trade conflict between US and China ratcheted up another notch following Trumps latest threat aiming at Chinese investments - a move which could have great long-term consequences on the US -Sino economic ties. After plunging to session low of 68.17 towards the tail-end, the rupee finally ended at 68.13, showing a steep loss of 29 paise, or 0.43 percent.
BSE to launch new platform to list startups next month
To make stock market listing attractive for startups, leading stock exchange BSE has decided to launch a new platform next month to list the new-age companies. This platform will facilitate the listing of companies in sectors like IT, ITES, bio-technology and life sciences, 3D printing, space technology and e-commerce.
Spelling out the criteria for the listing on the platform, the exchange said a company needs to have a pre-issue paid up equity share capital of a minimum of Rs 1 crore. The company should be in existence for a minimum period of three years on the date of filing the draft prospectus with BSE. Besides, it should have a positive net-worth.
EPFO may widen its investments beyond Nifty, Sensex
Sitting on a comfortable notional return of 16% from its stock market investments, retirement fund manager Employees’ Provident Fund Organisation (EPFO) is looking to broaden its equity portfolio beyond the Nifty 50 and Sensex 30 stocks.
EPFO and the labour ministry are of the view that to maximize returns, it has to expand its investment portfolio, according to internal documents reviewed by Mint, and two officials familiar with the development.
P-note investments dip to over 9-year low at May-end
Investments through participatory notes into Indian capital markets plunged to over 9-year low of more than Rs 93,000 crore at May-end amid stringent norms put in place by Sebi to check the misuse of these instruments.
According to Sebi data, the total value of P-note investments in Indian markets - equity, debt, and derivatives - slumped to a low of Rs 93,497 crore at May-end from Rs 1,00,245 crore in the end of March. Prior to that, the figure was Rs 1,06,403 crore.
EPFO to consider widening range of ETF investments on June 26
Retirement fund body EPFO trustees will consider today widening the range of equity linked schemes or exchange traded funds (ETFs) to maximise returns on its investments in stock markets. Besides, it will also consider a proposal to give extension of six more months to its five fund managers SBI, ICICI Securities Primary Dealership, Reliance Capital, HSBC AMC and UTI AMC for managing its corpus, says agenda listed for the trustees meet scheduled today.
The CPSE ETF gave a return of 7.94 percent at an investment of Rs 1,860.81 crore whereas an investment of Rs 2,024.75 crore in Bharat 22 fetched a return of Rs 8.46 percent. The EPFO's overall return on ETF investments of Rs 47,431 crore till May this year. Thus the EPFO wants to look for more rewarding options in equity linked schemes.
Bharat-22 ETF oversubscribed, receives bids worth Rs 15,436 cr
The second tranche of Bharat-22 Exchange Traded Fund (ETF) saw bids worth Rs 15,436 crore from investors, which is more than twice the amount sought to be raised. Through Bharat-22 ETF, comprising shares of 22 companies, the government had targeted to mop up Rs 6,000 crore with a green-shoe option of another Rs 2,400 crore.
Subscription has come in for 2.57 times of the base issue size of Rs 6,000 crore. The total bids that has come in is for Rs 15,436 crore and 1.2 lakh applications have come in, ICICI Prudential Mutual Fund, which is managing the follow-on fund offer (FFO) of Bharat-22 ETF, said.
6 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For June 26, 2018, CG Power, DHFL, IDBI, Infibeam, JP Associates and Wockhardt are present in this list.With inputs from Reuters & other agencies