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The Nifty which started with a gap-up on Thursday reclaimed its crucial resistance level of 10,800 on an intraday basis but failed to close above the same. The index still made a bullish candle on the daily charts and Supertrend indicator signals a buy which is a bullish sign.
The Nifty failed to close above the crucial resistance mark of 10,800, and 10,770 levels on closing basis as traders prefer to book profits at higher levels.
But in the last two days, it looks like bulls have tightened their grip on D-Street as Nifty is finding support at lower levels. The next target for Nifty is placed at 10,920 only if it manages to close above 10,820.
The index has a strong support near 10,600, 10,650 and 10,730 levels. If the index breaks 10,698 levels in the forthcoming sessions, there is a higher probability that bears could make a comeback.
The Nifty which opened at 10,722 rose to an intraday high of 10,818. The index failed to close near its intraday high and closed 83 points higher at 10,768.
India VIX moved up by 1.81 percent at 12.55 levels. Overall, lower volatility with higher Put Call Ratio suggests an overall bullish bias of the market.
According to Pivot charts, its key support is placed at 10,721.27, followed by 10,674.23. If the index starts moving upward, key resistance levels to watch out are 10,816.67 and 10,865.03.
The Nifty Bank index closed at 26,517.8. The important Pivot level, which will act as a crucial support for the index, is placed at 26,412.17, followed by 26,306.53. On the upside, key resistance levels are placed at 26,695.17, followed by 26,872.53.
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.
US markets end mixed as S&P, Nasdaq fall
The S&P and Nasdaq fell on Thursday as the technology sector snapped a rally while investors turned to safer bets as they kept an eye on global trade tensions and waited for US and European central bank meetings.
The Dow Jones Industrial Average rose 95.02 points, or 0.38 percent, to 25,241.41, the S&P 500 lost 1.98 points, or 0.07 percent, to 2,770.37. The Nasdaq Composite dropped 54.17 points, or 0.7 percent, to 7,635.07 after registering three straight closing record highs in the previous sessions.
Asian shares trade lower
Asian stocks drifted lower early on Friday, with major markets in the region recording slight declines after the mixed close on Wall Street. The Nikkei 225 shed 0.11 percent following four straight sessions of gains as banking stocks slipped while consumer stocks edged higher. The broader Topix was little changed.
The Kospi edged down by 0.32 percent as automakers and technology names traded lower, with Samsung Electronics falling 1.19 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 48 points or 0.45 percent. Nifty futures were trading around 10,724- level on the Singaporean Exchange.
India to meet fiscal deficit target of 3.3%: Moody's
Moody’s Investors Service expects India to meet its fiscal deficit target of 3.3 percent of GDP for the financial year ending March 2019, the rating agency said in a statement on June 7. For FY19, the target has been set at 3.3 percent, suggesting moderate consolidation over last year. Moody’s believes the budget assumptions are achievable, but acknowledges that the government may need to cut planned expenditure.
"Although Moody's sees some downside risk to budgeted revenue and expenditure targets, it expects that the government would cut back on planned capital expenditure, as has occurred in past years, if it is needed to offset any slippage from its fiscal targets," said William Foster, Vice President and Senior Credit Officer at Moody’s.
Oil prices rise on ongoing Venezuelan supply trouble
Oil prices rose on Friday, driven up as Venezuela struggles to meet its supply obligations and by ongoing voluntary output cuts led by producer cartel OPEC.
Brent crude futures were at USD 77.45 per barrel up 13 cents or 0.2 percent, from their last close. US West Texas Intermediate crude futures were up 19 cents, or 0.3 percent, at USD 66.14 a barrel.
FM Piyush Goyal to meet heads of PSU banks today
Finance Minister Piyush Goyal will meet heads of public sectors banks (PSBs) based out of western and southern regions tomorrow to resolve various issues concerning them. According to sources, the meeting is being organised by State Bank of India (SBI) and will be chaired by Goyal in Mumbai.
In all 15 CEO of PSBs from the two regions will participate in the meeting to discuss the way forward for the Indian banking system, they said. This is the first meeting with the heads of the PSBs after their annual financial result for 2017-18. Most of the banks posted loss in the fourth quarter of the last fiscal.
Dollar near 3-week lows, weighed by lower US yields and strong euro
The dollar wallowed near a three-week low against peers on Friday as US Treasury yields fell sharply, while the euro’s recovery remained intact amid expectations that the European Central Bank would begin unwinding it stimulus program.
The dollar index versus a basket of six major currencies was little changed at 93.444 after declining 0.3 percent overnight, when it posted its fourth session of losses. The index has fallen 0.75 percent this week, and plumbed 93.213 on Thursday, its lowest since May 17.
RBI reduces interest rate on unclaimed deposits by 50 bps to 3.5%
Interest rate on unclaimed deposit amount transferred to Depositor Education and Awareness (DEA) fund has been reduced by 50 basis points to 3.5 percent, the Reserve Bank said. In June 2014, RBI had specified that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the DEA Fund will be 4 percent simple interest per annum.
"The rate of interest has since been reviewed and it has been decided that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the Fund shall be 3.5 percent simple interest per annum with effect from July 01, 2018," RBI said.
Rupee off 1-month high, down 20 paise
The rupee on Thursday fell by 20 paise to 67.12 against the US dollar as revival in global crude prices renewed India's concerns on the fiscal front. The domestic currency retreated sharply from a one-month high after a sharp pullback rally in international crude prices predominantly played a spoilsport and kept the forex sentiment little shaky a day after the RBI raised key interest rates.
The rupee resumed little changed with negative bias at 66.93 per dollar at the interbank foreign exchange (forex) market on bout of dollar demand. It lost further ground to hit a session's low of 67.15 in late afternoon deals before ending at 67.12, revealing a steep loss of 20 paise, or 0.30 percent.
RBI amends Gold Monetisation Scheme to make it more attractive
The Reserve Bank of India (RBI) has made changes in the Gold Monetisation Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account.
The short-term deposits should be treated as bank's on-balance sheet liability, the RBI said in a notification. "These deposits will be made with the designated banks for a short period of 1-3 years (with a facility of roll over). Deposits can also be allowed for broken periods (e.g. 1 year 3 months; 2 years 4 months 5 days; etc.)," it said.
Two stocks under ban period on the NSE
Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For June 8, Balrampur Chini and DHFL are present in the the F&O ban list.
With inputs from Reuters & other agencies
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