The Nifty50 rallied for a fourth consecutive day in a row on February 5 and is trading well above crucial short and long-term moving averages. The index formed a bullish candle on daily charts and closed above 10,900 for the second day in a row.
One interesting thing which was visible on the charts was a buy signal triggered by MACD indicator on the daily charts. MACD stands for Moving Average Convergence/Divergence.
The MACD indicator is basically a refinement of the two moving averages system and measures the distance between the two moving average lines. The indicator gave a sell signal on January 24 and the index recorded an intraday low of 10,583 on January 29 before bouncing back towards 10,900 levels.
The index, which opened at 10,908, slipped to an intraday low of 10,886 before bouncing back towards 10900 levels. It hit an intraday high of 10,956 before closing the day at 10,934, up 22 points.
According to Pivot charts, the key support level is placed at 10,895.1, followed by 10,855.9. If the index starts moving upward, key resistance levels to watch out are 10,965.1 and then 10,995.9.
The Nifty Bank index closed at 27,271.7. The important Pivot level, which will act as crucial support for the index, is placed at 27,167.2, followed by 27,062.7. On the upside, key resistance levels are placed at 27,362.2, followed by 27,452.7.
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.
Earnings send Wall St higher as investors eye State of the Union speech
US stocks rose on Tuesday as largely upbeat corporate results fueled investor optimism ahead of the highly awaited State of the Union address by President Donald Trump.
The Dow Jones Industrial Average rose 172.15 points, or 0.68 percent, to 25,411.52, the S&P 500 gained 12.83 points, or 0.47 percent, to 2,737.7 and the Nasdaq Composite added 54.55 points, or 0.74 percent, to 7,402.08.
Asian shares mark time before Trump speech
Asian shares started cautiously on Wednesday as investors waited to see if US President Donald Trump drops any hints of progress on tariffs in his State of the Union speech.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat with China and several other markets in the region still closed for the Lunar New Year holiday. Japan’s Nikkei edged up 0.3 percent, while E-Mini futures for the S&P 500 barely budged.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 48 points or 0.44 percent. Nifty futures were trading around 11,008-level on the Singaporean Exchange.
Investors eye State of the Union speech
President Donald Trump will ask Congress in his State of the Union address on Tuesday to pass legislation to boost the nation’s aging infrastructure, but will not explain how to pay for it, administration officials said.
Trump is likely to set a benchmark of investing at least $1 trillion to build roads, bridges and other projects over the next decade, the officials said, but it is not clear if he will endorse new government spending for all or part of that amount.
A White House aide told reporters Trump will “talk broadly about rebuilding America, and he will ask Congress to produce an infrastructure package that delivers substantial investments and vital national infrastructure projects.”
Oil firms after two days of losses
Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. US West Texas Intermediate (WTI) crude futures were at $53.76 per barrel at 2338 GMT, up 10 cents, or 0.2 percent, from their last settlement. They closed down 1.7 percent on Tuesday.
India among countries to benefit from US-China trade war: UN
India is among the several countries that stand to benefit from the ongoing trade tensions between the world's top two economies - the US and China, the UN has said in its latest report.
The US and China are locked in a trade war since President Donald Trump imposed heavy tariffs on imported steel and aluminium items in March last year, a move that sparked fears of a global trade war.
The United Nations experts said Monday that the tit-for-tat trade dispute between China and the United States may do little to protect domestic producers in either country and could have "massive" implications on the global economy unless it is resolved.
Rupee snaps 2-day losing streak; firms up 23 paise to 71.57/USD
Snapping its two-day losing streak, the rupee ticked higher by 23 paise to close at 71.57 per US dollar on Tuesday amid fresh foreign fund inflows and gains in domestic equities.
Forex dealers said investors were cautious ahead RBI's Monetary Policy Committee outcome scheduled for February 7.
At the Interbank Foreign Exchange, the rupee opened stronger at 71.72 a dollar. The local unit moved in a range of 71.55 to 71.80, before finally ending at 71.57, showing a gain of 23 paise.
Sebi asks exchanges to step up intra-day surveillance; stocks with negative news flow under scanner
Capital markets regulator Sebi has asked exchanges to step up their surveillance of intra-day trading in the wake of significant volatility in a few stocks, sources said. The stocks under the scanner include those of a troubled airline, a media conglomerate facing liquidity crunch, a finance company under lens for alleged payment defaults, a pharma major being probed for insider trading and other violations as also a mining-to-infrastructure major.
Recently, these stocks have seen increased volatility amid adverse news flow regarding their promoters, top management and other issues. The markets watchdog has advised the exchanges to be extra cautious to check any possible manipulation in stocks that are witnessing huge volatility, a source said, while asserting the advice is not aimed at ringing alarm bells.
Govt expects Rs 69,000 crore dividend from RBI in FY20
The finance ministry expects Rs 69,000 crore dividend from the Reserve Bank of India (RBI) in the next financial year, sources said. The government has projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20.
If the central board of the RBI approves transfer of Rs 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be Rs 68,000 crore in 2018-19.
132 companies to report Q3 numbers today
As many as 132 companies will be declaring their results for the quarter ended December on Wednesday which includes prominent names like Adani Power, Balkrishna Paper Mills, Cipla, Cummins India, Graphite India, JSW Steel, Lupin, Punj Lloyd, Siemens, Venky’s India and Wheels India among others.
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 February 6, DHFL, IDBI, Jet Airways and Reliance Capital are present in this list.
With inputs from Reuters & other agencies
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
