The Nifty reversed gains in the second half of the session to close below its crucial support placed at 11,400 levels on Thursday. It made a bearish candle on the daily candlestick charts.
The index slipped below its 5-exponential moving average (EMA) placed at 11,401, but above 13-EMA placed at 11,349. For the momentum to continue on Friday, the index should stay above 11,366 and climb above 11,400 levels, suggest experts.
Failure of the index to hold above 11,366 which was the intraday low of Thursday, could drag the index towards 11,230 levels, they say.
The Nifty50 which opened at 11,397 rose to an intraday high of 11,449.85. It slipped below 11400 to hit an intraday low of 11,366 before closing at 11,385, down 50 points.
India VIX moved up by 2.73 percent at 13.64 levels. On the options front, maximum Put OI is placed at 11,000 followed by 11,200 strikes while maximum Call OI is placed at 11,500 followed by 11,400 strikes.
According to Pivot charts, the key support level is placed at 11,350.87, followed by 11,316.73. If the index starts moving upwards, key resistance levels to watch out are 11,434.47 and 11,483.93.
The Nifty Bank index closed at 27,826.6. The important Pivot level, which will act as crucial support for the index, is placed at 27,733.04, followed by 27,639.47. On the upside, key resistance levels are placed at 27,966.64, followed by 28,106.67.
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 rallies on solid earnings, US-China trade talks
US stocks rebounded on Thursday with the Dow posting its biggest percentage gain in over four months, as positive earnings and waning trade jitters buoyed investor confidence. The Dow Jones Industrial Average rose 396.32 points, or 1.58 percent, to 25,558.73, the S&P 500 gained 22.32 points, or 0.79 percent, to 2,840.69 and the Nasdaq Composite added 32.41 points, or 0.42 percent, to 7,806.52.
Asian shares gain on US-China trade talks
Asian shares won a modest reprieve on Friday after China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent in early trade, a day after it hit its lowest level in a year and Japan’s Nikkei gained 0.5 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 10 points or 0.09 percent. Nifty futures were trading around 11,432- level on the Singaporean Exchange.
Chinese official to visit US to resume talks to end trade war
Amid a stalemate in the trade war with the US, China will send a top official to Washington this month to resume the high-level dialogue to resolve the deadlock over President Donald Trump's demand to drastically reduce the USD 375 billion trade deficit.
Wang Shouwen, vice-minister of commerce, will lead a delegation to the US at the end of August to discuss bilateral trade issues with a team led by David Malpass, secretary of treasury for international affairs, the Chinese Commerce Ministry said in a statement yesterday. The initiative to resume talks followed a spate of tit-for-tat tariffs slapped by both the counties.
Rate hike to keep inflation below 4%: RBI MPC
RBI Governor Urjit Patel voted for a rate hike at its policy meet earlier this month as a step towards keeping inflation below the mandated 4 per cent mark on a "durable basis", according to the minutes of the meeting released yesterday. Five of the six members of the all-powerful Monetary Policy Committee headed by Patel had voted for a 25 basis points hike in the benchmark lending rate (repo) on August 1.
"As inflation risks have continued to be elevated, I vote for an increase in the policy repo rate by 25 basis points; this action is a necessary step towards securing the mandated 4 per cent inflation target on a durable basis," Patel opined.
Bank credit grows 12.7%
Bank credit grew 12.70 percent to Rs 86,79,741 crore in the fortnight to August 3, according to the latest RBI data. In the the year ago fortnight, bank advances was at Rs 77,01,926 crore.
The increase in advances in the reporting fortnight was higher than the growth registered in the previous fortnight ending July 20 when it had risen by 12.44 percent to Rs 86,13,164 crore. During the reporting fortnight, bank deposits grew by 8.21 percent to Rs 1,15,83,058 crore from Rs 1,07,04,112 crore in the period ending August 4, 2017, as per the data.
Rupee slides 26 paise to close below historic 70-mark
The rupee yesterday slid 26 paise to close below the 70-mark for the first time against the US currency, hammered by strong dollar demand amid growing concerns over widening trade deficit. The Indian currency collapsed to a historic intra-day trading low of 70.40 before closing at fresh life-time low of 70.15 per dollar, down by 26 paise or 0.37 per cent over the previous close.
After reversing earlier steep losses on the back of stepped up dollar selling by state-run banks, the rupee finally ended the day at 70.15. The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.2287 and for the euro at 79.9718.
Oil prices fall amid fears over global economic growth
Oil prices fell on Friday, with US crude heading for a seventh weekly decline amid increasing concerns about slowing global economic growth that could hit demand for petroleum products. Brent crude oil futures were down 5 cents at USD 71.38 a barrel by 0050 GMT. US West Texas Intermediate (WTI) crude futures dropped 4 cents to USD 65.42 a barrel.
AB Vajpayee: Mortal remains of former PM to lie in state at BJP HQ
Former Prime Minister Atal Bihari Vajpayee, who ordered nuclear tests to make India a nuclear weapons power and travelled by bus to Pakistan in a grand diplomatic gesture, died on Thursday, the hospital where he was being treated said in a statement. He was 93. The former Prime Minister's final rites will take place at Smriti Sthal at 5pm and govt offices will remain shut.
Sebi cuts listing time for public issue of debt securities
Markets regulator Sebi yesterday drastically cut the timeline for listing of debt securities to six days from 12 days at present, in order to make the existing process of issuance of such securities simpler and cost effective.
Besides, the Securities and Exchange Board of India (Sebi) has made ASBA (Application Supported by Blocked Amount) mandatory for all the investors for making payment while applying in a public issue of debt securities.
The mandatory ASBA facility would reduce the time taken for collecting banks to commence clearing of payment instruments, forwarding application forms along with bank schedules to registrar and undertaking of technical rejection test.
Fiscal position to worsen ahead of polls: Report
Calling for a tight monetary and fiscal policy amidst global uncertainties and upcoming general elections, a foreign brokerage today warned of worsening fiscal position due to poll-related spending spree before next May when the new Parliament has to be instituted. It has projected the consolidated fiscal deficit for FY19 at 6.5 percent of GDP against a budgeted 5.9 percent, which is only 10 bps lower than FY18.
"Specifically, there is a risk of the centre breaching its fiscal deficit target of 3.3 percent of GDP by at least 20 bps in FY19 unless it adjusts expenditure or non-GST revenue collection is higher than budgeted," Swiss brokerage UBS said in a note.
SEBI eases the process of issuance of securities on e-book platform
To ease the process of issuance of securities on electronic book platform, markets regulator Securities and Exchange Board of India (SEBI), yesterday allowed investors to place multiple bids in a private placement issue on debt basis and permitted depositories to act as facilitators.
In addition to the current system of open bidding, SEBI has allowed closed bidding on electronic book platform (EBP). This is subject to the issuer disclosing the mode of bidding. Under closed bidding, there will be be no real-time dissemination of bids on the EBP platform. The decision has been taken in consultation with market participants, the SEBI said in a circular. The move is aimed at further rationalising and easing the process of issuance of securities on such platform.
Investors pulled $1.3 bn out of India, other emerging markets last week: IIF
Investors rattled by events in Turkey, China and South Africa have pulled USD 1.3 billion out of emerging market stocks in the last week and USD 100 million from bonds, according to the Institute of International Finance, which tracks financial flows. An emerging-market sell-off has picked up pace over the last week as concerns about Turkey and others have compounded longer-term worries about a global trade war, a strong dollar and rising borrowing and energy costs.
The Washington-based IIF said the exodus of investment money this week has largely been concentrated in South Africa and China, amounting to USD 600 million and USD 500 million, respectively.
India's oil import bill to jump by $26 bn on rupee woes
India's crude oil import bill is likely to jump by about USD 26 billion in 2018-19 as rupee dropping to a record low has made buying of oil from overseas costlier, government officials said yesterday. Besides, the rupee hitting a record low of 70.32 to a US dollar in the opening deal today will also lead to a hike in the retail selling price of petrol, diesel and cooking gas (LPG).
India, which imports over 80 percent of its oil needs, spent USD 87.7 billion (Rs 5.65 lakh crore) on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at almost 227 MT.
4 stocks 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 August 17, Adani Enterprises, Adani Power, Jet Airways and Jain Irrigation are present in this list.
With inputs from Reuters & other agencies
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