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The Nifty, which started on a flat note followed by small correction, managed to gain strength in the morning itself and remained in a tight range on the higher side for the rest of the session but failed to hold 10,700 levels.
The index formed a small bullish candle as the closing price was higher than the opening level and also an inside bar kind of pattern on the daily charts.
The Nifty opened above its previous closing levels at 10,668.60 but the correction in Asian peers forced it to hit an intraday low of 10,630.25. The follow through buying and recovery in Asian counterparts then helped it regain strength in the morning itself to hit an intraday high of 10,713.30 before it finally closed 42.60 points higher at 10,699.90.
India VIX fell down up by 2.77 percent at 13 levels. Lower volatility indicates limited downside and decline is being bought.
According to Pivot charts, the key support level is placed at 10,648.97, followed by 10,598.03. If the index starts moving upwards, key resistance levels to watch out are 10,732.07 and 10,764.23.
The Nifty Bank index closed at 26,204.1 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,125.37, followed by 26,046.63. On the upside, key resistance levels are placed at 26,299.47, followed by 26,394.83.
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 ends lower
Wall Street dipped on Tuesday, weighed down by Apple, Facebook and other technology stocks, in a trading session ending early ahead of the US July 4 holiday. The Dow Jones Industrial Average declined 0.54 percent to end at 24,174.82 points, while the S&P 500 lost 0.49 percent to 2,713.22. The Nasdaq Composite dropped 0.86 percent to 7,502.67.
Asian shares on shaky ground in early trade
Asian stocks are on shaky ground on Wednesday while the Chinese yuan stood near 11-month lows as the spectre of a Sino-US trade war haunted investors ahead of an end-of-week deadline for US tariffs on billions of dollars worth of Chinese imports.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent in early trade, a day after it hit a nine-month low. Japan's Nikkei lost 0.5 percent.
SGX Nifty
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 1 point or 0.01 percent. Nifty futures were trading around 10,731-level on the Singaporean Exchange.
Oil prices climb on tightening US market
Oil prices edged up on Wednesday, lifted by a report of declining US fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States.
US West Texas Intermediate crude futures were at USD 74.60 a barrel up 46 cents, or 0.6 percent, from their last settlement. Brent crude futures were at USD 77.82 per barrel, up 6 cents from their last close.
Saudi says ready to pump more oil to balance market
Saudi Arabia, the world's top crude exporter, said yesterday it was prepared to use its spare production capacity, estimated at two million barrels, to balance the global oil market.
"The kingdom is prepared to utilise its spare production capacity when necessary to deal with any future changes in the levels of supply and demand," a cabinet statement said following a meeting chaired by King Salman.
Over 40 countries object at WTO to US car tariff plan
Major US trading partners including the European Union, China and Japan voiced deep concern at the World Trade Organization (WTO) on Tuesday about possible US measures imposing additional duties on imported autos and parts.
Over 40 WTO members, including the 28 countries of the European Union – warned that the US action could seriously disrupt the world market and threaten the WTO system, given the importance of cars to world trade.
Sebi raises overseas investment limit of AIFs, VCFs to $750 mn
Sebi on Tuesday enhanced the overseas investment limit of alternative investment funds (AIF) and venture capital funds (VCF) to USD 750 million from the current USD 500 million. The decision has been taken in consultation with the Reserve Bank of India (RBI), the Sebi said in a circular.
In order to monitor the utilisation of overseas investment limits, Sebi has asked AIFs and VCFs to mandatorily disclose the utilisation of such limits within 5 working days of such usage on the regulator's intermediary portal. In case an AIF or VCF has not utilised the overseas limit granted them within 6 months from Sebi's approval, the same will have to be reported within 2 working days after expiry of the validity period.
Govt to change base years for GDP, retail inflation calculation
The government will change the base year for calculation of GDP and retail inflation to 2017-18 and 2018 respectively, which is likely to come to effect by 2019-20. The last base year for GDP, IIP and consumer price index was revised to 2011-12 and 2012 (for inflation), Minister of Statistics and Programme Implementation Sadananda Gowda said.
"The revisions facilitated more accurate assessment of the progress of the economy and the society. Steps are being initiated for the next round of revision also, for GDP we would like to revise the base year to 2017-18 and base year for consumer retail inflation to 2018," Gowda said.
Cabinet likely to consider capital infusion in RRBs today
The Union Cabinet is likely to consider today further recapitalisation of rural regional banks (RRBs) in a bid to strengthen their lending capacity, sources said.
With a view to bringing the Capital to Risk Weighted Assets Ratio (CRAR) of RRBs to at least 9 percent, K C Chakrabarty Committee had recommended recapitalisation support to the extent of Rs 2,200 crore to 40 of 82 RRBs in 21 states.
The Cabinet's approval has also been sought to utilise the leftover amount of Rs 342.80 crore of the Rs 1,450 crore earlier approved by the Cabinet between 2011 and 2015.
BSE to delist 222 companies from today
BSE will delist as many as 222 companies from Wednesday as trading in their shares has remained suspended for over six months. The move comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for being allegedly used as conduits for illicit fund flows.
In a circular, the BSE said, "210 companies that have remained suspended for more than six months would be delisted from the platform of the exchange, with effect from July 4, 2018 pursuant to order of the delisting committee of the exchange".
Rupee recovers from 5-year low, up 23 paise at 68.57 a dollar
The rupee yesterday made a strong comeback against the US currency after taking a hammering yesterday, recouping by a steep 23 paise to end at 68.57 on fresh dollar selling by exporters and corporates. Heavy intervention by the Reserve Bank along with positive trend in local equity markets largely supported the home currency.
Earlier, extending its bearish stance, the domestic unit resumed lower at 68.91 from the last close of 68.80 at the interbank foreign exchange (forex) market. It hit a low of 68.97 in early deals moving in sync with the weakening of other currencies in the region and also heavily weighed down by steady capital outflows.
Govt to announce new MSP of paddy, maize, summer sown pulses & other Kharif crops today
The Centre will on Wednesday announce new Minimum Support Price (MSP) of all Kharif (summer-sown) crops for the 2018-19 marketing season. As announced by the government in its budget, the Union Cabinet is expected to bring the MSP of these crops to a level which will provide farmers a profit of minimum 50 percent over the cost of production.
“Higher MSP will surely raise farmers income but MSP alone is not a solution to generate adequate income for all category of farmers,” said Ramesh Chand, Niti Aayog member and key advisor to the government on farm policy.
With inputs from Reuters & other agencies
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