The Nifty which started on a positive note failed to hold on to momentum and breached its 5-day exponential moving average in September 3. The index closed below its crucial support placed at 11,600 and made a robust bear candle on daily charts which resembles a Bearish Belt Hold kind of pattern.
The Nifty index found support at 13-day exponential moving average (EMA) before closing the day at 11,582, down nearly 1 percent from the previous close of 11,680.
Traders are advised to tread with caution and use rallies to create short positions. The short-term trend will favor bears as long as Nifty trades below 11,760 levels suggest experts.
India VIX spiked up by 6.29 percent at 13.39 and a sudden jump in volatility is a cause of concern for immediate basis.
According to Pivot charts, the key support level is placed at 11,515.87, followed by 11,449.43. If the index starts moving upwards, key resistance levels to watch out are 11,700.27 and 11,818.23.
The Nifty Bank index closed at 27,819.5 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 27,663.54, followed by 27,507.57. On the upside, key resistance levels are placed at 28,089.33, followed by 28,359.17.
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.
Asian shares fall under pressure from trade, emerging markets worries
Asian shares fell in early trade on Tuesday, amid growing concerns over escalating international trade disputes and as emergency austerity measures in Argentina highlighted turbulence in emerging markets.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent after European shares ended mostly flat. Japan's Nikkei slid 0.3 percent and Australian shares were 0.2 percent lower.
SGX Nifty
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 1 point or 0.01 percent. Nifty futures were trading around 11,629-level on the Singaporean Exchange.
India allows state refiners to use Iran tankers, insurance for oil imports
India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country's top shipper Shipping Corp of India (SCI) halted voyages to Iran due to US sanctions, sources said. New Delhi's attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).
The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when US sanctions against Tehran's petroleum sector are due to start.
Oil prices higher as US sanctions limit Iran exports
Oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once US sanctions bite from November, but gains were limited by higher supply from OPEC and the United States.
Brent crude oil was up 37 cents at USD 78.01 a barrel by 2:54 p.m. EDT (1854 GMT). US crude was 30 cents higher at USD 70.10.
NITI Aayog vice-chairman blames Raghuram Rajan for economy slowdown: Report
The National Institute for Transforming India (NITI) Aayog vice-chairman Rajiv Kumar blamed the former Reserve Bank of India governor Raghuram Rajan for the decline in growth rate over the last three years, according to a report by India Today. Kumar said that Rajan’s policies were responsible for a decline in the GDP growth rate for over six quarters.
On August 31, the CSO pegged India's GDP growth at 8.2 percent, the highest in two years. The last time such a growth was witnessed in the first quarter of FY17. The Economic Survey now projects India's growth at 7-7.5 percent in FY19. “There was trend of declining growth and why the growth was declining? The growth was declining because of the rising NPA, the non-performing assets in the banking sector,” Kumar said, adding that the rise in NPA and the decline in the GDP growth rate was due to the decisions taken by Rajan.
RBI buys 8.46 tonne of gold in FY18; first purchase in 9 years
The Reserve Bank of India (RBI) has bought 8.46 tonne of gold in financial year 2017-18, the first purchase of yellow metal by the apex bank in almost nine years, a report said. RBI held 566.23 tonne of gold as on June 30, 2018, compared with 557.77 tonne as on June 30, 2017, according to RBI's latest annual report for 2017-18. "The increase is on account of addition of 8.46 tonne of gold during the year," the report said.
Last time the apex bank purchased gold was in November 2009, when it had bought 200 tonne of yellow metal from the International Monetary Fund. Of 566.23 tonne of gold reserves, 292.30 tonne is held as backing for notes and is shown as an asset of the Issue Department, and the balance 273.93 tonne is treated as an asset of the Banking Department.
Rupee ends at fresh record low of 71.21/$
The Indian rupee, on Monday, closed at a record closing low of 71.21 on the back of overseas fund outflows even as GDP data saw a robust growth for the April-June quarter of current fiscal. The currency touched an intraday low of 71.23 to the US dollar. This is in sharp contrast to the way it had begun trade. In the morning , the currency had started on a positive note as it opened higher by 19 paise to the previous close at 70.80 per dollar.
Strong GDP data for June quarter is likely to have boosted investors in the morning. India's economy grew at a two-year high of 8.2 percent in the April-June quarter of 2018-19.
10-year govt bond yield closes near 8% , highest since 4 years
Indian government 10-year bond yield on Monday touched almost 8 percent to hit nearly four year high as continued surge in crude oil prices and global trade war keeping analyst worried. The 10-year govt bond yield settled at 7.999 percent — a level last seen on December 1, 2014, from its previous close of 7.952 percent. In intraday it touched 8 percent. Bond yields and prices move in opposite directions.
RBI employees' 2-day mass leave programme deferred
The two-day mass casual leave on September 4 and 5 called by the United Forum of Reserve Bank Officers and Employees (UFRBOE) has been deferred after discussion with the bank management, the union said.
"Consequent to series of meeting between top management of Reserve Bank of India with unions, the forum has decided to defer the pragramme of mass causual leave scheduled on September 4 and 5 to first week of January, 2019 in response to the bank's request to give some more time to resolve the demands," a UFRBOE statement said.
NCLT approves 1:10 swap ratio for ICEX, NMCE merger
The National Company Law Tribunal (NCLT) has approved the swap ratio of 1:10 for the merger of National Multi Commodity Exchange (NMCE) with the Indian Commodity Exchange (ICEX), a top ICEX executive said.
The board of directors of both the exchanges will meet this week to formalise the merger. "The NCLT has approved the swap ratio of one share of NMCE for 10 shares of ICEX," Sanjit Prasad, chief executive officer, ICEX, said. "Following the NCLT approval of merger, ICEX will become India's third largest commodity exchange with average daily turnover of Rs 300 crore," he added.
With inputs from Reuters & other agencies
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