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After a blockbuster rally last week, the Indian market consolidated in a narrow range on November 5. The Nifty50 slipped below its crucial support placed at 10550 to form a 'Hanging Man' kind of pattern on the daily charts.
The Nifty50, which opened at 10,558.75, rose marginally to hit its intraday high of 10,558.80 which resulted in no upper shadow for the index. The bears' grip on D-Street was from the start and pushed the index below 10,500 in intraday trade.
However, bulls managed to push the index back above 10,500 levels towards the closing which is a positive sign. The Nifty50 finally closed 29 points down at 10,524.
Crucial support for the index is placed at 10,440 and below that at 10,200 levels. On the upside, Nifty50 is likely to face stiff resistance at 10,600-10,700 levels, suggest experts.
India VIX moved up by 6.87 per cent at 19.48 levels. VIX has to go down below 17-16 zones to confirm the short-term reversal and a decent bounce back after the sharp cut of last two months.
According to Pivot charts, the key support level is placed at 10,481.07, followed by 10,438.13. If the index starts moving upwards, key resistance levels to watch out are 10,562.87 and then 10,601.73.
The Nifty Bank index closed at 25,732.2. The important Pivot level, which will act as crucial support for the index, is placed at 25,581.66, followed by 25,431.13.
On the upside, key resistance levels are placed at 25,835.46, followed by 25,938.73.
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.
Wall Street boosted by financials, energy, defensive sectors
The S&P 500 rose on Monday with boosts from financial, energy and defensive sectors as investors showed some caution on the eve of US congressional elections.
The Dow Jones Industrial Average rose 190.87 points, or 0.76 percent, to 25,461.7, the S&P 500 gained 15.25 points, or 0.56 percent, to 2,738.31 and the Nasdaq Composite dropped 28.14 points, or 0.38 percent, to 7,328.85.
Asian markets inch up
Asian shares ticked up in early Tuesday trade, supported by Wall Street gains although sentiment was tempered ahead of the US midterm elections, the first major electoral test of President Donald Trump’s big tax cuts and hostile trade policies.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent while Japan's Nikkei gained 0.5 percent, a day after both fell more than one percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 35 points or 0.33 percent. Nifty futures were trading around 10,595-level on the Singaporean Exchange.
Oil dips on worries an economic slowdown could cut fuel demand
Oil prices dipped on Tuesday as concerns that an economic slowdown may curb fuel demand growth overshadowed the reintroduction of sanctions on Iran.
US West Texas Intermediate (WTI) crude futures were at $62.93 a barrel at 0021 GMT, down 17 cents, or 0.3 percent, from their last settlement. Brent had yet to trade, with liquidity of the international benchmark expected to be low on Tuesday due to a holiday in Asia’s oil trading hub of Singapore.
Rupee does U-turn, nosedives 67 paise against US dollar
After two sessions of massive gains, the Indian rupee on November 5 tumbled by 67 paise to close at 73.12 against the US dollar on increased demand for the American currency from importers and unabated foreign fund outflows.
The domestic currency had gained 150 paise in the previous two sessions. Forex traders said the strengthening of the American currency against major global currencies overseas and weakness in the domestic equity market weighed on the local unit.
After opening lower at 72.76, the rupee plunged to the day's low of 73.13 and finally settled for the day at 73.12, down 67 paise over its previous closing price.
SBI Q2 profit falls 40% YoY to Rs 944.9 crore
State Bank of India (SBI) returned to the black in the September quarter after reporting a loss in three consecutive previous quarters. It made a net profit of Rs 944.87 crore for the September quarter, against a net loss of Rs 4,875.85 crore during the previous quarter. The profit was lower by 40 percent from Rs 1,581.55 crore in the September quarter last year.
"Though the profit may be modest, there is no looking back. From here on, the number is going to get bigger and bigger hereafter," said Rajnish Kumar, Chairman of SBI.
US renews Iran sanctions, grants oil waivers to China, seven others
The United States snapped sanctions back in place on Monday to choke Iran’s oil and shipping industries, while temporarily allowing top customers such as China and India to keep buying crude from the Islamic Republic.
Earlier, Iranian President Hassan Rouhani said Iran would continue to sell its oil despite Washington’s “economic war.” Foreign Minister Mohammad Javad Zarif said US “bullying” was backfiring by making Washington more isolated.
Crisil sees Rupee racing back to 71 levels by March
The rupee may appreciate to 71 against the dollar by March 2019 on positives like the dip in crude prices and the $75-billion currency swap with Bank of Japan, says a report. Pegging 71 to a dollar as its base case, rating agency Crisil said on November 5 there is a 50 percent probability for the rupee to be at that level by March 2019.
"The falling oil prices and the currency swap deal with Japan should provide some support to the rupee," it said.
The report said there is a 35 percent probability for the rupee settling at 74 against the dollar in the same time period and there is only a 15 percent likelihood of its appreciating to its earlier target of 68.5 against the greenback.
PNB MetLife gets Sebi's go-ahead for IPO
PNB MetLife India Insurance Company has received market regulator Sebi's go-ahead to float an initial public offer (IPO). The insurer, which had approached the regulator in July seeking its clearance to launch IPO, obtained Sebi's "observations" on November 2, as per the latest update with the market watchdog.
According to the draft papers, the company IPO will put up 49,58,98,076 shares for sale, worth 24.64 per cent stake dilution. PNB will offer up to 8,04,95,242 shares in the IPO, while Metlife International Holdings LLC will offload 12,90,36,281 stocks.
The issue is being managed by Kotak Mahindra Capital Company, DSP Merrill Lynch, Citigroup Global Markets India and PNB Investment Services.
Penna Cement files Rs 1,550-cr IPO papers with Sebi
Penna Cement Industries has filed draft papers with capital markets regulator Sebi to raise Rs 1,550 crore through an initial public offer (IPO). The IPO comprises fresh issuance of shares worth up to Rs 1,300 crore, besides, an offer for sale of up to Rs 250 crore by company's promoter PR Cement Holdings, according to the draft red herring prospectus (DRHP) filed with Sebi.
Edelweiss Financial Services, IIFL Holdings, JM Financial and Yes Securities will manage the company's public issue.
46 companies to report Sept quarter numbers today
As many as 46 companies are scheduled to report its results for the quarter ended September which include names like Camlin Fine, Balmer Lawrie, Graphite India, JK Industries, Dr Lal Pathlabs, Manappuram Finance and Voltas among others.
With inputs from Reuters & other agencies
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