Bulls maintained their power at Dalal Street for third consecutive session on Tuesday as the Nifty50 after a strong breakout above 10,900 levels in morning extended rally in later part of the session to reclaim 10,956.90 levels intraday.
The index also crossed Karnataka Election Result day's high of 10,929 and closed at five-month high, forming a solid Bullish candle on the daily charts.
The 50-share NSE Nifty which opened at 10,902.75 rallied further as the day progressed and hit an intraday high of 10,956.90, before closing 94.40 points or 0.87 percent higher at 10,947.30, the highest closing level since February 1, 2018.
After a rangebound trade for around two months, the strong breakout indicated that the Nifty could be heading towards its earlier all-time highs of 11,171 touched on January 29, experts said.
India VIX closed flattish at 12.39 levels. VIX has been falling down from last five trading sessions and lower volatility indicates bullish stance of market till it remains below 13.50 zones.
According to Pivot charts, the key support level is placed at 10,896.97, followed by 10,846.73. If the index starts moving upwards, key resistance levels to watch out are 10,977.17 and 11,007.13.
The Nifty Bank index closed at 26,894.55, up 141.25 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,802.2, followed by 26,709.8. On the upside, key resistance levels are placed at 26,963.3, followed by 27,032.
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.
US markets end higher, futures fall late
The S&P 500 rose on Tuesday to post its highest closing level since February 1, the day before the market began a sharp extended selloff, as strong results from PepsiCo boosted optimism about the earnings season.
During the regular session, the Dow Jones Industrial Average rose 143.07 points, or 0.58 percent, to end at 24,919.66, while the Nasdaq Composite added 3.00 points, or 0.04 percent, to 7,759.20. The S&P 500 gained 9.67 points, or 0.35 percent, to 2,793.84.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 35 points or 0.32 percent. Nifty futures were trading around 10,923-level on the Singaporean Exchange.
Asian markets fall after fresh US tariff
Major markets in Asia fell in the morning trade following the release of a list of an additional USD 200 billion in Chinese goods on which the US is considering imposing tariffs. China markets dropped on the back of the news, with the Shanghai composite sinking 2.31 percent in morning trade.
Hong Kong's Hang Seng Index slumped 2.02 percent in early trade. Japan's Nikkei 225 fell 1.74 percent while the Kospi declined 1.13 percent.
US to slap tariffs on extra $200 bn of Chinese imports
The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra USD 200 billion worth of Chinese imports. The administration released a wide-ranging list of Chinese goods it proposes be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tires, dog and cat food, and consumer electronics including television components.
Some US business groups and senior lawmakers sharply criticized the latest action on Tuesday, with Senate Finance Committee Chairman Orrin Hatch, a Republican, saying it “appears reckless and is not a targeted approach.”
Oil rises on supply disruptions
Oil rose on Tuesday, supported by a larger-than expected US stock draw and supply concerns in Norway and Libya, though gains were tempered by the United States’ indication that it would consider requests for waivers from Iranian oil sanctions.
Brent crude futures gained 79 cents to settle at USD 78.86 per barrel. Earlier, the global benchmark hit a session high of USD 79.51. US crude futures rose 26 cents to settle at USD 74.11, after hitting a high of USD 74.70.
India, South Korea aim to more than double trade to $50 bn
India and South Korea signed 11 agreements on Tuesday to expand business ties and more than double mutual trade to USD 50 billion by 2030, a day after the premiers of the two countries launched a Samsung mobile phone factory near Delhi.
“Going forward I hope that more Korean companies will invest in India so that the foundation for mutual prosperity can be further expanded,” Moon said after meeting Prime Minister Narendra Modi on the third day of his four-day visit.
RBI remains net seller of US dollar in May; sells $5.767 bn
Reserve Bank remained net seller of the US dollar after it sold whopping USD 5.767 billion of the US currency on net basis in May in the spot market, according to data.
During the reporting month, RBI had bought USD 4.101 billion of dollars, while it sold USD 9.868 billion in the spot market. In April, the RBI had net sold 2.483 billion of the US currency. In May 2017, the apex bank was a net buyer at USD 5.006 billion, after it had purchased USD 7.020 billion of dollars, and sold USD 2.014 billion.
India imposes anti-dumping duty on Chinese polyester yarn
India has imposed anti-dumping duty of up to USD 528 per tonne for 5 years on a Chinese polyester yarn used in automobile and other industries. The move will provide a level playing field to domestic players and guard them against below-cost imports.
Commerce Ministry's investigation arm Directorate General of Anti-dumping and Allied Duties (DGAD) had recommended the duty after a probe into alleged dumping of 'High Tenacity Polyester Yarn' from China.
CBI registers 3 cases of banking fraud after Rs 136 cr loss to SBI
The CBI has registered three separate cases of banking fraud against three Mumbai-based companies for an alleged banking fraud that caused a cumulative loss of over Rs 136 crore to State Bank of India, officials said yesterday. One of the cases is against Top Worth Pipes and Tubes Pvt. Ltd, its Directors Abhay Narendra Lodha, Shishir Shivaji Hiray, Harshraj Shantilal Bagmar, the then SBI officials AGM ThyagarajuInamanamelluri, Deputy Manager Vilas Narhar Ahirrao, Deputy Manager, Madhura Mangesh Sawant for allegedly causing a loss of 56.81 crore to the bank, the officials said.
"It was alleged that the said private companies enjoyed bill discounting facilities against the Letters of Credit issued by State Bank of India, D. N. Road branch and PM Road Branch, Fort, Mumbai. "However, these bills were returned unpaid by the concerned banks, since it was observed that there were instances of diversion of funds and misrepresentations by the companies," CBI Spokesperson Abhishek Dayal said.
US dollar ends higher against rupee
The US dollar ended higher against the rupee at 68.82/83 per dollar but the pound sterling finished lower at Rs 91.09/11 at the close of the Interbank Foreign Exchange (forex) market yesterday.
The Indian rupee closed marginally weaker against the US dollar, tracking losses in Asian currencies. It ended at 68.82 a dollar, down 0.15 percent from its previous close of 68.72.
TCS Q1 beats estimates boosted by digital, BFSI business
Tata Consultancy Services, India’s largest software services company, on Tuesday reported first quarter results that beat analyst expectations due to healthy digital business growth and a rebound in its BFSI business.
The company said net profit in the June-ended quarter was Rs 7,340 crore compared to Rs 7,014.3 crore that analysts had estimated in a Reuters poll. Revenue rose 6.8 percent sequentially to Rs 34,261 crore, meeting the average expectation of Rs 34,005.6 crore according to a Reuters poll.
1 stock 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 July 11, IDBI is present in this list.
With inputs from Reuters & other agencies
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