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The Nifty ended the volatile session in green with gains of 31 points on Monday making a ‘Hammer’ like pattern on the daily charts. The Nifty closed in green after shedding around 600 points in the last 4 sessions.
The Nifty bounced back from its crucial support placed at 10,200 levels. It reclaimed 10,300 levels on closing basis and now as long as it holds above this level, the bounce should take the Nifty towards 10,420, and 10,500 levels, suggest experts.
India VIX moved up by 2.12 percent at 20.15 levels but it slipped from its intraday swing high of 21.77 levels. Overall, higher volatility suggests a bear grip but a cool off in VIX with a topping out formation could form a short-term bottom in the market.
Technically, the crucial resistance is now placed at 10,500-11,000 levels and pullback towards the said level might face extensive selling pressure, suggest experts.
According to Pivot charts, the key support level is placed at 10,231.5, followed by 10,115.0. If the index starts moving upwards, key resistance levels to watch out are 10,431.4 and 10,514.8.
The Nifty Bank index closed at 24,618.3. The important Pivot level, which will act as crucial support for the index, is placed at 24,323.8, followed by 24,029.3.
On the upside, key resistance levels are placed at 24,829, followed by 25,039.7.
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.
US markets end mixed, Nasdaq drops for 3rd day
The tech-heavy Nasdaq fell on Monday for the third straight day as a sell-off in Chinese markets sparked concerns about slowing global economic growth, though the S&P 500 pared losses to end nearly flat. Among the biggest drags on both the Nasdaq and the S&P 500 were Microsoft Corp, down 1.1 percent, and Adobe Systems Inc, down 3.2 percent.
The Dow Jones Industrial Average rose 39.73 points, or 0.15 percent, to 26,486.78, the S&P 500 lost 1.14 points, or 0.04 percent, to 2,884.43 and the Nasdaq Composite dropped 52.50 points, or 0.67 percent, to 7,735.95.
Asia stocks at 17-month low amid China concerns
Asian shares hit 17-month lows on Tuesday as investors fretted about everything from the Chinese economy, to trade wars, higher US bond yields and political dysfunction in Europe.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased another 0.15 percent after ending Monday at its lowest point since May last year. Japan’s Nikkei fell 1.1 percent as it resumed from a one-day holiday, hurt in part by a rise in the safe-harbor yen.
SGX Nifty
Trends on SGX Nifty indicate a falt to negative opening for the broader index in India, a fall of 10 points or 0.1 percent. Nifty futures were trading around 10,357-level on the Singaporean Exchange.
IMF cuts world economic growth forecasts
The International Monetary Fund on Tuesday cut its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.
The IMF said in an update to its World Economic Outlook it was now predicting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.
India wants US sanctions waiver after cutting Iran oil imports: Officials
India hopes to secure a waiver from US sanctions on Iran before they take effect on November 4, as it had significantly cut Iranian oil imports before the deadline, officials said on Monday. The US is imposing new sanctions on Iran's oil industry after Washington withdrew from a nuclear deal between Tehran and other global powers. Washington said on Friday it was considering waivers for nations that were reducing imports of Iranian oil.
Indian Oil Minister Dharmendra Pradhan told reporters that New Delhi was discussing the issue of a waiver "with all the authorities concerned." "We have to fulfil our domestic requirements," Pradhan said, confirming the plan to buy some Iranian crude after US sanctions kick in.
Oil prices steady after Iranian exports fall further
Oil prices held little changed on Tuesday, as more evidence emerged that crude exports from Iran are declining in the run-up to the reimposition of US sanctions, while a hurricane moved across the Gulf of Mexico.
Brent crude was down 7 cents at $83.84 a barrel by 0020 GMT. On Monday, Brent fell to a low of $82.66, but mostly recovered as investors bet China’s economic stimulus would boost crude demand. Brent hit a four-year high of $86.74 last week. US crude was down by 1 cent at $74.28 a barrel, having fallen as low as $73.07 in the previous session to close the day just 5 cents lower.
Rupee slumps 30 paise to close at record low of 74.06
The rupee slumped by 30 paise to finish at a fresh lifetime low of 74.06 against the US dollar on October 8 amid strengthening of the greenback and steady capital outflows. The rupee had opened lower by 14 paisa against October 5 closing of 73.76 in early trade as the US dollar strength against major global currencies weighed on the rupee sentiment.
At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 73.89 a dollar against its previous closing of 73.76. It recovered to a high of 73.76, but failed to sustain the momentum and plunged to 74.10 and finally closed at 74.06, down by 30 paise, marking its fifth straight session of decline.
Sebi revises norms for recovery of investors' money
Markets regulator Sebi has put in place revised norms for recovering of investors' money, wherein a registered insolvency professional will be appointed as administrator to undertake sale of assets. The regulator has revised the procedures to be followed for refunding the investors' money pursuant to failure of complying with disgorgement or refund orders passed by it.
In case an entity is not traceable or is not complying with Sebi directions, the recovery officer can appoint an administrator for the purpose of selling the properties attached, the regulator said in a notification dated October 3. Only an entity registered with the IBBI as insolvency resolution professional would be considered eligible for appointment as administrator.
Investment in P-notes rises to Rs 84,647 cr by August-end
Investments in the Indian capital market through participatory notes climbed to Rs 84,647 crore till August-end, making it the first rise in such fund infusion in 10 months. According to the Securities Exchange Board of India (Sebi) data, total value of P-note investments in the Indian market - equity, debt, and derivatives - rose to Rs 84,647 crore till August-end from Rs 80,341 crore clocked by the end of July.
Of the total investments made last month, P-note holdings in equities were at Rs 66,233 crore and the remaining in debt and derivatives markets. Besides, thequantum of FPI investments via P-notes rose to 2.5 per cent during the period under review from 2.4 per cent in the preceding month.
Liquid fund outflows wipe out Rs 2.3 lakh crore from MF industry in Sept
A massive outflow from liquid funds left the mutual fund industry short of Rs 2.3 lakh crore in September, according to the data from the Association of Mutual Funds in India (AMFI). Going by the data on AMFI, outflows from liquid funds alone totalled Rs 2.11 lakh crore. Liquid funds or money market segment invests in cash assets such as treasury bills, certificates of deposit and commercial paper for a shorter horizon.
In addition, income schemes -- the type of debt mutual funds that deliver a steady income -- have seen a pullout of Rs 32,504 crore. Besides, gold ETFs continued to see a net outflow of Rs 33 crore.
ASK Investment, Puranik Builders among 4 cos to get SEBI's nod for IPO
As many as four companies, including wealth management firm ASK Investment Managers and real estate developer Puranik Builders, have received markets regulator SEBI's approval to float initial share-sales. The other two companies are IT solutions firm Nihilent and Muthoot Microfin.
Nihilent obtained "observations" from the markets regulator on October 1, while the other three firms got the same on October 5, as per the latest update with Securities and Exchange Board of India (SEBI).
Going by the draft papers, ASK Investment Managers' IPO comprises fresh issuance of shares worth up to Rs 600 crore besides an offer for sale of up to 1,35,69,405 shares by private equity company AI Global and 44 lakh stocks by promoter Sameer Kotecha.
1 stock 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 October 9, IDBI is present in this list.
With inputs from Reuters & other agencies
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