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The Nifty after opening at 11,558.25 on Friday fell sharply below 11,500 to hit an intraday low of 11,484.40. It rebounded in late morning trade to hit an intraday high of 11,603. The index saw some profit booking at higher levels, which dragged the market tad below the psychological 11,600-mark at close. It ended the session 52.20 points higher at 11,589.10.
The index formed a small bullish candle on the daily charts, which also resembles a hammer like pattern. Recovery in the dollar-rupee and stability in crude oil prices supported the market.
The index snapped its six-week winning streak, forming a bearish engulfing candle on the weekly chart. It corrected 0.8 percent in the passing week after registering a 6 percent rally in the previous six consecutive weeks.
On the weekly chart, the Nifty registered a hammer kind of formation with a long lower shadow as more than half of its intra week losses were recouped, he stated. "This kind of price action has clearly tilted the tide in favour of bulls in the near term. As our twin momentum oscillators also generated a buy signal, we expect this rally to get extended up to 11,679 levels. As participation is becoming wide and broad-based after the recent correction, we will not be surprised if the bulls made an attempt to get past 11,700 levels."
According to pivot charts, the key support level is placed at 11,514.67, followed by 11,440.23. If the index starts moving upwards, the key resistance levels to watch out are 11,633.27 and 11,677.43.
The Nifty Bank index closed at 27,481.45, up 12.75 points on Friday. The important pivot level, which will act as crucial support, is placed at 27,305.3, followed by 27,129.2. On the upside, key resistance levels are placed at 27,585, followed by 27,688.6.
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 drops on tariff worries
Wall Street's major indexes fell on Friday as US President Donald Trump raised the possibility of additional tariffs on Chinese imports and Apple Inc indicated that some of its products could be subjected to such levies.
The Dow Jones Industrial Average fell 79.33 points, or 0.31 percent, to 25,916.54, the S&P 500 lost 6.37 points, or 0.22 percent, to 2,871.68 and the Nasdaq Composite dropped 20.19 points, or 0.25 percent, to 7,902.54.
Asian shares on slippery slope as trade tensions take toll
Asian shares started the week in the red again on Monday, faltering for the eighth straight day and the dollar climbed against major currencies after US President Donald Trump raised the stakes in the heated trade dispute with China.
MSCI’s broadest index of Asia-Pacific shares outside Japan were last down 0.2 percent after dropping 3.5 percent last week for their worst weekly showing since mid-March. Japan's Nikkei opened lower but quickly pared losses. Australia's benchmark share index slipped 0.2 percent, while South Korea's KOSPI index eased 0.1 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 47 points or 0.4 percent. Nifty futures were trading around 11,588-level on the Singaporean Exchange.
Ready to tax an additional $267 bn in Chinese imports: Trump
President Donald Trump said Friday that he's prepared to impose tariffs on an additional $267 billion in Chinese imports. Such a step would significantly escalate his trade war with Beijing and would likely increase costs for a broad range of US businesses and consumers.
Those potential tariffs would come on top of tariffs Trump has said he's poised to slap on $200 billion worth of Chinese goods — everything from handbags to bicycle tires. It would also be in addition to tariffs his administration has already imposed on $50 billion in Chinese imports, for which Beijing has retaliated with an equal amount of import taxes on US goods.
"I hate to say this, but behind that there is another $267 billion ready to go on short notice if I want," Trump told reporters on Air Force One. "That totally changes the equation."
Japan second-quarter GDP posts fastest growth since 2016
Japan’s economy grew in April-June at its fastest pace since 2016 thanks to capital spending rising more quickly than earlier estimated, although global trade tensions and a string of natural disasters pose risks to the outlook.
Revised Cabinet office data showed the economy grew an annualized 3.0 percent in April-June, handily beating economists’ median estimate for 2.6 percent gain and posting the fastest growth since the start of 2016.
Trump wants to stop subsidies to growing economies like India, China
President Donald Trump on Friday said he wants to stop the subsidies that growing economies like India and China have been receiving as he wants the US, which he considers as a "developing nation", to grow faster than anybody.
Addressing a fundraiser event in the Fargo city of North Dakota, he also accused the World Trade Organization (WTO) of allowing China to become a "great economic power". "We have some of these countries that are considered growing economies. Some countries that have not matured enough yet, so we are paying them subsidies. Whole thing is crazy. Like India, like China, like others we say, 'oh, they're growing actually'," Trump said.
CAD eases marginally to 2.4% of GDP in Q1 FY19 : RBI
India's current account deficit (CAD) as a percentage of GDP declined marginally to 2.4 percent in the April-June quarter of 2018-19 against 2.5 percent in the year-ago period, the RBI data released on September 7 showed. In value terms, the CAD was higher at $15.8 billion in April-June this year as against $15 billion in the same quarter of 2017-18 mainly due to a higher trade deficit.
"India's current account deficit (CAD) stood at $15.8 billion (2.4 percent of GDP) in Q1 of 2018-19 as compared with $15 billion (2.5 percent of GDP) in Q1 of 2017-18," the RBI said on Developments in India's Balance of Payments (BoP).
Oil prices climb as US energy firms cut rigs, Iran sanctions loom
Oil prices rose on Monday as the number of US rigs drilling for new production was cut last week and as the market is expected to tighten once US sanctions against Iran’s crude exports kick in from November.
US West Texas Intermediate (WTI) crude futures were at $68.09 per barrel at 0055 GMT, up 34 cents, or 0.5 percent, from their last settlement. Brent crude futures climbed 42 cents, or 0.6 percent, to $77.25 a barrel.
RBI tweaks norms for exchange of defective currency
The RBI tweaked norms for exchange of mutilated currency notes following introduction of Rs 2,000, Rs 200 and other lower denomination currencies. Post demonetisation in November 2016, the Reserve Bank has introduced Rs 200 and Rs 2,000 notes. Besides, it came out with smaller notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500.
Public can exchange banks mutilated or defective notes at RBI offices and designated bank branches across the country for either full or half value, depending upon the condition of the currency.
Forex reserves drop by $1.19 bn to $400.10 bn
The country's foreign exchange reserves fell by $1.191 billion to $400.101 billion in the week to August 31 due to a decline in foreign currency assets and gold reserves, according to RBI data. In the previous week, the forex reserves had increased by $445.4 million to $401.293 billion.
The decline in the country's forex reserves in the past few weeks is on account of the Reserve Bank of India selling US dollars to contain depreciation in the rupee, which touched a lifetime low of 72.11 against the greenback in intra-day trade on September 6.
India's e-commerce market to surpass $100 bn by 2022 : Report
India's e-commerce market is set to grow three times to surpass $100 billion by 2022 and may trigger over a million jobs in the coming years, a report said.
According to the report by industry body Nasscom and PwC India, the e-commerce market is worth about $35 billion at present. E-tail and e-travel will continue to hold their sway with over 90 percent share of e-commerce while online financial services will experience the fastest growth, the report said.
It also noted that e-commerce can potentially create one million plus jobs by 2023. "The Indian e-commerce market of $35 billion is expected to grow at 25 percent in the next five years and exceed $100 billion by 2022," it said.
Mutual Funds' asset base reaches all-time high of Rs 25 lakh cr
Mutual funds' asset base touched a record Rs 25 lakh crore in August-end, a surge of 8.41 percent over the previous month, on the back of robust inflow in liquid funds and strong participation from retail investors. According to Amfi data, the asset under management (AUM) of the industry, comprising 42 players, was Rs 23.06 lakh crore at the end of July.
The total asset base of all the fund houses put together was Rs 20.6 lakh crore in August last year.
FPIs turn net sellers in Sept, pull out Rs 5,600 cr in just 5 trading sessions
Foreign investors have pulled out a massive Rs 5,600 crore from the Indian capital markets in the last five trading sessions, after putting in money during the previous two months, on unabated fall in rupee and rise in crude oil prices.
The latest outflow comes following a net infusion of close to Rs 5,200 crore in the capital markets, both equity and debt, last month and Rs 2,300 crore in August. Prior to that, overseas investors had pulled out over Rs 61,000 crore during April-June. According to the latest depository data, foreign portfolio investors (FPIs) withdrew a net sum of Rs 1,021 crore from equities during September 3-7 and a net amount of Rs 4,628 crore from the debt market, taking the total to Rs 5,649 crore.
Govt may end EPFO regulatory functions, plans separate entity: Report
The government is considering relieving the Employees' Provident Fund Organisation (EPFO) of its regulatory duties and plans to create a separate entity to handle such functions, The Financial Express reported.
The rationale behind the proposal is to avoid conflict of interest, since EPFO is both India’s largest provident fund (PF) provider and a regulator. The Labour Ministry has already begun working on the division after a suggestion from the Finance Ministry, sources told the paper.
Sebi panel proposes relaxing foreign fund rules for NRIs
In a relief to foreign investors worried over new know your customer (KYC) and beneficiary ownership norms, the Securities and Exchange Board of India (Sebi) on Saturday initiated a public consultation process for finalising the new guidelines, after a high-powered panel suggested changes on several contentious proposals and more time for compliance.
Amid concerns in some quarters that several foreign funds, including those managed and owned by non-resident Indians (NRIs) and persons of Indian origin (PIOs), could face difficulties in meeting the new norms even within the extended deadline of December, the panel headed by former RBI deputy governor HR Khan suggested several changes on the basis of inputs from the finance ministry and industry representatives.
With inputs from Reuters & other agencies
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