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Bulls failed to regain control over D-Street as Nifty slipped below crucial moving average such as 5-day exponential moving average (EMA), 20-EMA, as well as 13-EMA in a single day and made a ‘Bearish Belt Hold’ kind of pattern on daily charts on Monday.
A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.
The index slipped below crucial short-term moving average and the next crucial support is now placed at 11,250 which was the swing low formed on September 12. On the other hand, for bulls to take control, Nifty has to reclaim 11,520 levels.
The Nifty opened at 11,464 and slipped below 11,400 to touch its intraday low of 11,366 before closing the day at 11,377 down 137 points.
According to Pivot charts, the key support level is placed at 11,341.47, followed by 11,305.13. If the index starts moving upwards, key resistance levels to watch out are 11,439.57 and 11,501.33.
The Nifty Bank index closed at 26,820.3. The important Pivot level, which will act as crucial support for the index, is placed at 26,708.26, followed by 26,596.23. On the upside, key resistance levels are placed at 26,967.46, followed by 27,114.63.
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 fall after Trump announces new round of tariffs
US stock index futures extended losses in post-market trading late Monday after President Trump announced a new round of tariffs on about $200 billion worth of Chinese imports. Trump said he will impose 10 percent US tariffs on about $200 billion worth of Chinese imports but he spared smart watches from Apple and Fitbit.
The Dow Jones Industrial Average fell 92.55 points, or 0.35 percent, to 26,062.12, the S&P 500 lost 16.18 points, or 0.56 percent, to 2,888.8 and the Nasdaq Composite dropped 114.25 points, or 1.43 percent, to 7,895.79.
Asian shares drop as Trump slaps new tariffs on China
Asian shares fell on Tuesday after US President Donald Trump said he will impose tariffs on an additional $200 billion worth of Chinese imports, in a sharp escalation of the trade conflict between the world’s two biggest economies.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.15 percent in early trade but Japan's Nikkei bucked the trend to gain 0.4 percent.
SGX Nifty
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 8 points or 0.07 percent. Nifty futures were trading around 11,381-level on the Singaporean Exchange.
Trump slaps tariffs of $200 bn in Chinese goods
US President Donald Trump escalated his trade war with China on Monday, imposing 10 percent tariffs on about $200 billion worth of Chinese imports, but sparing smart watches from Apple and Fitbit and other consumer products such as bicycle helmets and baby car seats.
Trump, in a statement announcing the new round of tariffs, warned that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
Collection of tariffs on the long-anticipated list will start September 24 but the rate will increase to 25 percent by the end of 2018, allowing US companies some time to adjust their supply chains to alternate countries, a senior administration official said.
India likely to push back retaliatory tariffs on US products by 45 days
India is likely to yet again defer retaliatory duty against the US on import of around 29 products, including apples, walnuts, pulses, certain iron and steel products by 45 days. The duty was scheduled to come into effect from September 18.
“The government is likely to postpone the implementation of higher import duty by another 45 days,” a senior government official told Moneycontrol.
UK economy will shrink without Brexit deal, IMF warns
Britain's economy will shrink if it leaves the European Union without a Brexit deal and it will suffer some damage whatever terms it agrees, the International Monetary Fund said on Monday, challenging the promises of some Brexit supporters. The Fund predicted Britain's economy would grow by about 1.5 percent a year in 2018 and 2019 lagging behind Germany and France if a broad Brexit agreement was struck.
"I'm a desperate optimist, and I very much hope and pray that there will be a deal between the European Union and the UK," IMF Managing Director Christine Lagarde said. But failure to get a deal would lead to a contraction, she said.
Oil prices drop as escalating trade war clouds demand outlook
Oil markets dropped on Tuesday as the latest escalation in the Sino-US trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support.
Brent crude futures had declined 27 cents, or 0.35 percent, to $77.78 per barrel by 0054 GMT. US West Texas Intermediate (WTI) crude fell 32 cents, or 0.46 percent, to $68.59 per barrel.
SEBI eases public issue norms
Markets regulator SEBI has relaxed initial public offer (IPO) norms to allow companies to announce the price band two days before an offering. At present, the price band has to be announced five working days before the initial share sale opens for subscription. The markets watchdog also said that financial disclosures will need to be made for three years, compared with the earlier five years, the Securities and Exchange Board (SEBI) said in a notification dated September 11.
While amending the ICDR (Issue of Capital and Disclosure Requirements) regulations, the regulator said that restated and audited financial disclosures in the offer document would be on consolidated basis only.
HFCs', MFIs' borrowing cost may rise over 30bps in FY19: Report
With interest rates cycle reversing, cost of borrowing for housing finance companies (HFCs) and microfinance institutions (MFIs) is likely to increase by over 30 basis points in the current fiscal year, and by another 40-50 basis in FY20, a Crisil report said Monday. The lending rates are also likely to go up, but the pace and intensity of the increase in rates will depend on product competitiveness, existing interest rates, and a company's dominance in the industry, it said in its report.
"The interest rate trajectory is expected to remain elevated for a while. Players with higher exposure to market borrowings and short-term instruments will see greater impact on their cost of borrowings in the near term," it said.
SEBI to overhaul settlement rules; approvers may get confidentiality, lenient terms
Capital markets regulator SEBI is planning to make its settlement rules more attractive to help fast-track cases including offering confidentiality and lenient terms for approvers but would not settle cases of wilful defaulters and fugitive economic offenders. Besides, the settlement payment would need to be paid by top executives or directors responsible for default in case of companies seeking to settle a matter, as penalising the company may amount to making its shareholders suffer twice, officials said.
The changes as per suggestions of a high-powered committee and the subsequent public comments to the settlement mechanism would be discussed by SEBI's board at a meeting scheduled on September 18.
Ircon International IPO subscribed 29% on Day 1
The initial public offer of railways engineering and construction firm Ircon International was subscribed 29 percent on the first day of bidding on September 17. The Rs 470.49-crore IPO received bids for 28,92,870 shares against the total issue size of 99,05,157 shares, data available with the NSE showed.
Non-institutional investors segment was subscribed 4 percent and retail investors 86 percent. The issue, which would close on September 19, has been set in a price band of Rs 470-475 per share. The initial public offer is of 9,905,157 shares. IDBI Capital Markets & Securities, Axis Capital and SBI Capital Markets are managing the offer. The shares of the company will be listed on BSE and NSE.
IndiaMart, Avana Logistek get SEBI's go ahead for IPOs
Online marketplace IndiaMART InterMESH Ltd and logistics company Avana Logistek have received markets regulator SEBI's go-ahead to float initial share sale offers. With this, the number of companies getting SEBI's approval to float an initial public offer (IPO) has reached 50 this year so far.
Through IndiaMART's public issue, a total of 42,88,801 equity shares will be divested by the promoters and private equity firms Intel Capital (Mauritius), Amadeus Capital Partners and Accion Frontier Inclusion Mauritius. The initial share-sale offer is expected to garner Rs 600 crore, merchant banking sources said. The public issue is being managed by ICICI Securities, Edelweiss Financial Services and Jefferies India.
Avana Logistek's initial share sale consists of fresh issue of shares worth up to Rs 300 crore, besides, an offer for sale of up to 43 lakh scrips by the existing shareholders.
1 stock 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 September 18, Adani Enterprises is present in this list.
With inputs from Reuters & other agencies
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