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Positive global cues, short covering and a bit of value buying in beaten down stocks helped the market snap a five-day losing streak on Tuesday. The index made a bullish candle on the daily charts, resembling a Piercing Pattern.
Piercing Pattern is generally called as a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
In a perfect piercing pattern, opening will be below previous day’s closing price and the close will be above the mid-point of previous sessions candle body but Tuesday’s opening was almost close to Monday’s closing price.
The Nifty50 after opening flat fell sharply and hit an intraday low of 10,882.85. It managed to recoup losses in morning trade itself amid volatility but slipped into red again in afternoon followed by sharp recovery in last hour of trade which helped the index climb above 11,000 levels to hit day's high of 11,080.60. The index closed 100.10 points higher at 11,067.50.
According to Pivot charts, the key support level is placed at 10,940, followed by 10,812.5. If the index starts moving upwards, key resistance levels to watch out are 11,137.8 and 11,208.1.
The Nifty Bank index closed at 25,330.35, up 360 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,870.04, followed by 24,409.77. On the upside, key resistance levels are placed at 25,598.74, followed by 25,867.17.
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.
S&P 500 dips as chip stocks and utilities tumble
The S&P 500 fell on Tuesday as chipmakers were dented by ratings downgrades and utilities declined ahead of an expected Federal Reserve interest rate hike, offsetting a boost from the energy sector. S&P 500 financials including interest-rate-sensitive bank stocks dipped 0.38 percent ahead of the expected rise in interest rates by the Fed on Wednesday. Utilities, which tend to be favoured in low-rate environments because of their solid dividend payments, slid 1.22 percent.
The Dow Jones Industrial Average fell 0.26 percent to end at 26,492.21 points, and the S&P 500 lost 0.13 percent to 2,915.56. The Nasdaq Composite rose 0.18 percent to 8,007.47. Amazon.com Inc provided the greatest lift to the technology-heavy index, jumping 2.08 percent.
Asian shares hover below 3-week high as Fed rate hike looms
Asian shares barely budged on Wednesday, lacking traction as US bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat in early trade, in part as South Korea is closed for a holiday. It stayed below a three-week high hit on Friday. In Japan, the Nikkei edged down 0.4 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 48.5 points or 0.44 percent. Nifty futures were trading around 11,12-level on the Singaporean Exchange.
US-China trade war dims Asia's 2019 growth outlook: ADB
Developing Asia could grow more slowly than previously thought next year as the US-China trade war inflicts collateral damage on the region’s export-reliant economies, the Asian Development Bank (ADB) said on Wednesday. Tightening global liquidity could also weigh on business activity by pushing up borrowing costs, while capital outflows are also a risk.
“Downside risks to the outlook are intensifying”, said ADB Chief Economist Yasuyuki Sawada, pointing to the potential impact of US-Sino trade tensions on regional supply chains and the risk of sudden capital outflows if the Federal Reserve raises interest rates even more quickly.
Banks expect to recover Rs 1.80 lakh cr from NPAs: FM Arun Jaitley
Banks expect to recover about Rs 1.80 lakh crore from overall non-performing assets (NPAs) through insolvency and other resolution mechanisms, Finance Minister Arun Jaitley said on September 25. Reviewing the performance of state-owned lenders with their bank chiefs, Jaitley said apart from NPA recoveries, lenders also expect to monetise close to Rs 18,000 crore in this financial year via non-core divestments.
So far, lenders have recovered Rs 36,551 crore in the first quarter (April to June) of the current fiscal ending March 2019. This is 49 percent higher than the same quarter last year. In 2017-18, banks recovered Rs 74,562 crore. Jaitley also asked the heads of public sector banks to take "effective action" in cases of fraud and wilful loan defaults.
Fed may hike rates by 25 bps on Wednesday
The Federal Reserve is likely to hike interest rates by 25 basis points on Wednesday, as strong employment and inflation in the US as well as strengthening economy have increased hopes for further policy tightening. As two-day Federal Open Market Committee (FOMC) meeting began on Tuesday, there are expectations that the central bank will increase the rates to 2-2.25 percent range from 1.75-2 percent, Economic Times reported.
Oil prices drop, Brent moves further away from four-year high
Brent oil edged further away from a four-year high on Wednesday and US crude fell, after the US said it would ensure crude markets are well supplied before sanctions are re-imposed on Iran and as President Donald Trump criticized high prices.
Brent crude futures were down 43 cents, or 0.5 percent, at $81.44 a barrel by 0041 GMT, after gaining nearly 1 percent the previous session. Earlier on Tuesday, Brent hit its highest since November 2014 at $82.55 per barrel. US crude futures were down 40 cents, or 0.6 percent at $71.88 a barrel.
See 16% growth in exports in current financial year: Commerce Secretary
The government is expecting a 16 percent growth in the merchandise export in the current financial year, a top government official said on September 25. “Our exports have grown at 16 percent during April-August in the current year and we expect the growth rate to continue during the rest of the year”, commerce secretary Anup Wadhawan said, adding that the Commerce Ministry is working on a commodity and territory-wise export strategy.
In order to achieve this target, the Ministry is engaging with exporters on a daily basis. Exports grew 9.78 percent to $302.84 billion during 2017-18. During April-August 2018-19, grew 16.13 percent at $136.09 billion.
Rupee losses widen, down 6 paise at 72.69 against USD
The rupee weakened further by 6 paise to close at 72.69 to the US dollar on sustained demand for the American currency amid soaring crude prices. It was a highly volatile day on the forex market as wide swings in the currency value kept investors on edge and precluded the emergence of a clear trend. A further sharp spike in international crude oil prices due to a combination of factors and bullish dollar overseas trend ahead of Federal Reserve's two-day policy meet kept trading sentiment little shaky.
The Indian currency dangerously slipped to a low of 72.96 in early trade -- within striking distance of its life-time low of 72.99 hit last week but managed to pare some losses on likely intervention from the central bank. It briefly touched a high of 72.57 in mid-afternoon deals. The rupee has lost 49 paise in last two days.
Anand Rathi Wealth Services files Rs 425 cr IPO papers
Financial services firm Anand Rathi Wealth Services has filed draft papers with markets regulator SEBI to raise an estimated Rs 425 crore through an initial public offering (IPO). The IPO comprises fresh issue of equity shares by Anand Rathi Wealth Services aggregating up to Rs 125 crore and an offer for sale of up to Rs 300 crore by the promoter Anand Rathi Financial Services, according to the draft red herring prospectus (DRHP) filed with SEBI.
As per the DRHP, the company plans to use the IPO proceeds to purchase and furnish office premises in Mumbai. The firm will also invest in its subsidiaries -- ARWMPL and FIINFRA -- for upgradation and enhancement of software and other technology-related expenses.
2 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 September 26, Adani Power and DHFL are present in this list.
With inputs from Reuters & other agencies
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