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The Nifty, which started on a flat note on Wednesday, closed sharply lower due to weak global cues and fell below its crucial support placed around 10,700 levels, ahead of expiry of June futures & options contracts in the coming session. The index formed a 'Bearish Belt Hold’ kind of pattern on the daily charts.
The 50-share NSE Nifty opened at 10,785.50 which was also the intraday high for the index which resulted in small lower shadow. The bears took control of D-Street in morning trade itself and pushed the index below its crucial support placed at 10,700 levels. It hit an intraday low of 10,652.40 and then bounced back to marginally close above its 50-day exponential moving average (EMA) placed around 10,670.
The index, which is now trading below most of its short-term moving averages such as 5, 13, 20-EMA and 50-DMA, closed down 97.80 points or 0.91 percent at 10,671.40.
Most experts feel if the selling pressure extends, then the Nifty may move towards 10,400 levels but if the index bounces back above its 50-DEMA then there could be some relief for bulls on the expiry day. India VIX moved up by 5.55 percent at 13.51 levels. Spurt in VIX indicates limited upside as of now.
According to Pivot charts, the key support level is placed at 10,620.7, followed by 10,570.0. If the index starts moving upwards, key resistance levels to watch out are 10,753.8 and 10,836.2.
The Nifty Bank index closed at 26,423.4 on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,295.17, followed by 26,166.93. On the upside, key resistance levels are placed at 26,592.97, followed by 26,762.54.
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 tumbles on renewed US-China trade jitters
US stocks fell on Wednesday on renewed uncertainty regarding the US stance on Chinese investments in American technology companies, reversing gains earlier in the session.
The Dow Jones Industrial Average fell 165.52 points, or 0.68 percent, to 24,117.59, the S&P 500 lost 23.43 points, or 0.86 percent, to 2,699.63 and the Nasdaq Composite dropped 116.54 points, or 1.54 percent, to 7,445.09.
Asian shares flirt with nine-month low on mounting trade war fears
Asian stocks slumped to nine-month lows on Thursday on growing worries the US administration’s approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in US technology firms.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 percent to a nine-month low in early trade while Japan’s Nikkei shed 0.30 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 30 points or 0.28 percent. Nifty futures were trading around 10,645-level on the Singaporean Exchange.
Deal struck for Putin-Trump summit, Helsinki possible venue
Moscow and Washington struck a deal on Wednesday to hold a summit soon between Russian President Vladimir Putin and US President Donald Trump, a move likely to worry some US allies and draw a fiery reaction from some of Trump’s critics at home.
Trump confirmed that Helsinki was a possible site. Other officials said the Russians were pushing for the summit to be in the Austrian capital of Vienna. Trump listed Syria and Ukraine among the many subjects he said they would discuss. His list did not include warnings from US intelligence officials that Russia will try to interfere in US congressional elections in November.
US postpones '2+2 dialogue' with India due to 'unavoidable reasons': MEA
The US yesterday conveyed to India that it has postponed the first '2+2 dialogue' between the two sides due to "unavoidable reasons" and expressed regret. The India-US '2+2 dialogue' was to be held on July 6, and External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman were to travel to the US to take part in the meeting with US Secretary of State Michael R Pompeo and Secretary of Defence James Mattis.
Secretary of State Pompeo spoke with Swaraj and expressed his "regret and deep disappointment" at the US having to postpone the 2+2 dialogue for "unavoidable reasons", Ministry of External Affairs Spokesperson Raveesh Kumar said.
Oil rallies as supply disruptions seen from Canada to Libya
Oil prices jumped on Wednesday as plunging US crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington’s demands that importers stop buying Iranian crude from November.
US crude futures rose USD 2.23, or 3.16 percent, to settle at USD 72.76 a barrel. The contract touched USD 73.06 a barrel, the highest since November 28, 2014. Brent crude rose USD 1.31, or 1.7 percent, to settle at USD 77.62 a barrel.
Infosys to announce June-quarter results on July 13
Infosys is scheduled to announce its financial results for the June quarter on July 13. The meeting of the board will be held on July 12 and 13 to consider the audited consolidated financial results of the company and its subsidiaries for the quarter ending June 30, 2018, Infosys said in a BSE filing.
"The financial results will be presented to the board of directors on July 13, 2018 for their approval," it added. Investors will not only be keen on the company's scorecard for the June quarter and its take on the demand environment for tech services, but will eagerly also watch out for the management's narrative and operational strategy, given the backdrop of governance-related issues.
Telecom sector revenue dips 1.7%, licence fee falls 12.7% in Mar quarter
The gross revenue of telecom operators slipped 1.76 percent year-on-year during the quarter ending March 2018, while licence fee and spectrum charges, that government collects from them, fell 12.7 percent and 23.4 percent respectively, according to a Trai report.
The adjusted gross revenue or AGR earned by companies from sale of telecom services dropped over 12.5 percent to Rs 35,697 crore during the January-March quarter 2018 from Rs 40,831 crore in the year-ago period.
BSE SME aims to list 300 firms on its platform by Dec
The BSE SME Platform hopes to list 300 companies on its platform by December this year, a senior exchange official said. "As on today 254 SMEs are listed on BSE SME platform having a market capitalisation of Rs 21,000 crore. Nearly 46 companies have filed for listing, of which 20 SMEs have received approvals and we hope that 300 SMEs will get listed on our platform by December 2018," BSE SME head Ajay Thakur said.
"MSMEs need to adopt disruptive thinking to take better advantage of the growth dividend opportunity," opined an expert panel at the Edelweiss SME Lending-BSE MSME Day.
Singaporean FM asks NSE,SGX to resolve issues to serve investors
Singaporean finance minister Heng Swee Keat yesterday asked the sparring NSE and Singapore Exchange to resolve their differences over derivatives trading to help widen and deepen investor interest in both the markets.
"I think we should see how we can widen and deepen that investor interest...I look forward to closer cooperation between both sides, to resolve whatever differences of views they may have," Keat said. It can be noted that the NSE and SGX have been in a tussle since early this year after the largest domestic bourse and others decided to stop licensing their indices to foreign bourses from this August.
NSE to conduct mock, live trading sessions on DR site next month
Leading exchange NSE yesterday said that it will conduct live and mock trading sessions on its disaster recovery site next month for various segments. A disaster recovery (DR) site is necessary for all critical institutions like exchanges so that operations can be done in a smooth and seamless manner if any extraneous event affects the functioning of the main trading centre in Mumbai.
According to three separate NSE circulars, the mock trading sessions will be conducted from the disaster recovery site on July 7 and live trading sessions on July 9 and 10. The exchange "shall be conducting trading sessions (mock and live)" from its DR site, NSE said.
Rupee crashes to 19-month low on oil scare, trade war worries
The embattled rupee yesterday plunged by 37 paise or 0.54 percent to settle at a 19-month low of 68.61 against the US dollar as growing crude oil prices fanned fears of a widening current account deficit and a spike in inflation. This is the lowest closing for home currency since November 24, 2016, when it had settled at 68.73.
The rupee, which strengthened 5.96 per cent against the US dollar last year, has been on a general downtrend since the start of 2018. It has lost nearly 7 percent this year so far. It had touched a historic low of 68.86 in November 24, 2016 and a lifetime closing low of 68.80 in August 28, 2013.
F&O expiry today, markets may remain volatile
Investors willbe watching out for F&O expiry today and markets are likely to remain volatile ahead of June series expiry. The Nifty rollover stand at 42 percent just a day ahead of expiry. It was 63 percent when at the start of the June series which was lower than its 3-month average
The Nifty50 closed at 10,736 on May expiry day on May 31 and if Nifty to close above this level then June series will end in negative. But, there is a trend which has been witnessed on the expiry day and that is volatility in the last one hour of the session.
Puranik Builders files draft papers for Rs 1000-cr IPO
Puranik Builders, a Mumbai-based residential real estate developer, has filed draft papers with markets regulator Sebi to raise an estimated Rs 1,000 crore through an initial public offer. Edelweiss Financial Services and IIFL Holdings will manage the company's public issue.
The IPO comprises fresh issue of shares worth Rs 810 crore, besides, an offer for sale up to 18,59,620 equity shares by the company's promoters and existing shareholders, according to the draft papers with the Securities and Exchange Board of India (Sebi).
Penver Products files IPO papers with Sebi
Seafood company Penver Products yesterdat filed draft papers with markets regulator Sebi to raise funds through an initial public offering. Besides, micro-finance lender Spandana Sphoorty has approached the Sebi with its IPO papers this week, while housing loan company Aavas Financiers had filed preliminary papers with the markets regulator last week to float initial share-sale offer.
Penver's initial share-sale consists of a fresh issue of equity shares aggregating up to Rs 242 crore, besides, an offer for sale of up to 41,08,000 equity shares by the promoters, the company said in a statement.
5 stocks 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 June 28, 2018, DHFL, Infibeam, JP Associates, Jain Irrigation, and Wockhardt are present in this list.
With inputs from Reuters & other agencies
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