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The Nifty50 which with a gap down managed to recoup a majority of its losses and closed flat with slight negative bias on Friday. It made a bullish candle on the daily charts on an intraday basis and a ‘Long Legged Doji’ kind of pattern on the weekly charts.
Technical experts advise investors to remain cautious as bulls failed to reclaim crucial resistance levels even after strong rally seen in two back-to-back trading sessions. It is crucial for bulls to reclaim 10,818 levels which was the intraday high of Thursday for the momentum to continue.
India VIX fell down by 0.65 percent at 12.69 levels. On the options front, maximum Put OI is placed at 10,600 followed by 10,500 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.
According to Pivot charts, its key support is placed at 10,724.63, followed by 10,681.57. If the index starts moving upward, key resistance levels to watch out are 10,795.13 and 10,822.57.
The Nifty Bank index closed at 26,451.3. The important Pivot level, which will act as a crucial support for the index, is placed at 26,330.0, followed by 26,208.7.
On the upside, key resistance levels are placed at 26,526.8, followed by 26,602.3.
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 close higher
US stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central bank meetings. The S&P 500 stayed in positive territory in the afternoon after reversing losses in the early afternoon with its biggest boosts coming from the health care and consumer staples sectors.
The Dow Jones Industrial Average .DJI rose 75.12 points, or 0.3 percent, to 25,316.53, the S&P 500 .SPX gained 8.61 points, or 0.31 percent, to 2,778.98 and the Nasdaq Composite .IXIC added 10.44 points, or 0.14 percent, to 7,645.51.
Asia stocks wobble after G7 summit
Asian stocks moved gingerly on Monday as a weekend G7 summit fanned trade conflict fears after US President Donald Trump backed out of a joint communique in a blow to the group’s efforts to show a united front.
Japan's Nikkei dipped 0.1 percent while South Korea's KOSPI .KS11 added 0.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 21.5 points or 0.2 percent. Nifty futures were trading around 10,769-level on the Singaporean Exchange.
Trump & North Korea's Kim in Singapore for historic Tuesday summit
US President Donald Trump arrived in Singapore on Sunday for a historic summit with North Korean leader Kim Jong Un that could lay the groundwork for ending a nuclear stand-off between the old foes and the transformation of the isolated Asian nation.
Trump flew into Singapore’s Paya Lebar Air Base aboard Air Force One, looking to strike a deal that will lead to the denuclearisation of one of America’s bitterest foes.
US-Canada spat escalates after tense G7, Europeans criticise Trump
The United States and Canada swung sharply toward a diplomatic and trade crisis on Sunday as top White House advisers lashed out at Canadian Prime Minister Justin Trudeau a day after US President Trump called him “very dishonest and weak.”
The spat drew in Germany and France, who sharply criticized Trump’s decision to abruptly withdraw his support for a Group of Seven communique hammered out at a Canadian summit on Saturday, accusing him of destroying trust and acting inconsistently.
FinMin takes stock of PSBs, sets up committee to consider 'bad bank'
The government has initiated a committee of bankers to look at a possibility of setting up a 'bad bank' and other new mechanisms to help resolve stressed assets faster. After a brainstorming session with public sector bank chiefs, interim Finance Minister Piyush Goyal said, "A committee has been set up under the chairmanship of Sunil Mehta non executive chairman of PNB (Punjab National Bank) to deliberate whether it is worth considering setting up of an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) to deal with assets having exposure to several banks."
A bad bank is an entity or structure that buys non-performing assets (NPAs) or distressed loans from banks and financial institutions (FIs), mostly at a discounted market price. It then works to recover and turnaround the assets through professional management, sale or restructuring.
NSE introduces additional surveillance measures on 60 firms undergoing insolvency process
The National Stock Exchange on Saturday decided to introduce additional surveillance measures for companies that are undergoing insolvency resolution process (IRP) as per the Insolvency and Bankruptcy Code (IBC). The exchange has listed out 60 companies that are a part of this process.
These would come into effect from June 11, 2018. Stocks such as ABG Shipyard, Amtek Auto, Bhushan Steel, IVRCL, Jaypee Infratech, Monnet Ispat, Lanco Infratech, Orchid Pharma, Ruchi Soya Industries, Viceroy Hotels, Alok Industries, Tecpro Systems, and Zenith Computers, among others will be under the surveillance measures.
FPIs infuse Rs 2,200 cr in equities in last 6 trading sessions
Foreign investors poured in more than Rs 2,200 crore in the Indian equity markets in the last six trading sessions on the back of easing of global crude oil prices and revival in corporate earnings. This comes following a net outflow of over Rs 15,600 crore in equities during last two months. Prior to that, foreign portfolio investors (FPIs) had pumped in Rs 11,655 crore in March.
According to latest data available with the depositories, the net investment by FPIs in equities stood at Rs 2,241 crore during June 1-8. Such overseas investors, however, pulled out Rs 405 crore from the debt markets during the period under review.
Industry expects close to 8% GDP growth over next 2 years: CII
Industry is expecting the GDP to grow by close to 8 percent over the next couple of years, as strong reforms process and fiscal prudence have laid a solid foundation for growth, CII said in a report.
"The economy is in a sweet spot right now as the adjustment process regarding major reforms of the past few years is largely stabilised and industry is ready for a fresh phase of investment while capacity utilization builds up," CII President Rakesh Bharti Mittal said.
PSU banks suffer whopping Rs 87,000 cr loss in FY18
Losses of public sector banks crossed a whopping Rs 87,300 crore in 2017-18 fiscal, topped by scam-tainted PNB which took a hit of nearly Rs 12,283 crore. Of the 21 state-owned banks, only two banks, Indian Bank and Vijaya Bank, posted profits during 2017-18.
The net loss posted by state-owned banks was about Rs 85,370 crore in 2017-18 as against a net profit of Rs 473.72 crore in the previous fiscal. The 19 government-run banks collectively posted a net loss of Rs 87,357 crore during the fiscal, according to the latest quarterly numbers posted by these lenders.
Forex reserves decline $594 mn to $412.23 bn
India's forex reserves declined by USD 593.7 million to USD 412.23 billion for the week ended June 1 on a dip in the gold assets, Reserve Bank said today. In the previous reporting week, the total reserves had declined by USD 2.23 billion to USD 412.83 billion.
The reserves had touched a record high of USD 426.028 billion in the week to April 13, after crossing the USD 400-billion mark in September last year, but have since been fluctuating and have declined for many weeks now when the rupee has been under pressure.
Nirav Modi flees to UK, claiming political asylum
Nirav Modi, the billionaire jeweller at the heart of a more than USD 2 billion fraud case in India, has fled to the UK, where he is claiming political asylum, the Financial Times reported on Sunday, citing Indian and British officials. Nirav Modi is in London trying to claim asylum from what he calls “political persecution”, the FT reported.
India’s ministry of external affairs told the FT the Indian government was waiting for the country’s law enforcement agencies to approach them before pushing for an extradition, which had thus far not happened.
FDI in India rises to $61.96 bn in 2017-18: Govt
Foreign direct investment (FDI) in India increased by about 3 percent to USD 61.96 billion in 2017-18 on account of steps taken by the government to improve business climate and liberalised policy norms. FDI inflows stood at USD 60 billion in the previous fiscal. The figure includes equity inflows, reinvested earnings and other capital.
The main sectors that received maximum foreign inflows include services, computer software and hardware, telecommunications, construction, trading and automobile. Major sources of foreign inflows include Mauritius, Singapore, Japan, the Netherlands, the US, Germany, France and the UAE.
Rupee dives to 1-week low of 67.50
The rupee on Friday plunged by 38 paise or 0.57 percent to close at a fresh one-week low of 67.50 against the US currency amid worries over rising global crude prices and capital outflows. Sustained demand for the greenback from state-run banks, likely on behalf of oil importers and some foreign portfolio investors weighed on the Indian currency, forex dealers said.
The home currency collapsed to a low of 67.79 in day trade against the dollar before recouping some of its losses on suspected market intervention by the RBI.
3 stocks under ban period on the NSE
Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For June 11, Balrampur Chini, DHFL and Jet Airways are present in the F&O ban list.
Inputs from Reuters & other agencies
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