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The Indian market wiped out morning gains and witnessed an intraday movement of nearly 200 points on November 12. The Nifty took support at its 13-days exponential moving average (EMA) placed around 10,455 and formed a strong bearish candle on the daily charts.
The index breached its 5-EMA on the downside, bounced back from 13-EMA but failed to close above 10,500 levels. The next crucial support for the index is placed at 10,440. A close below this level could take the index towards 10,132 levels, suggest experts.
The index formed a Hanging Man kind of pattern in the previous trading session and formation of a bearish candle on Monday confirms the formation of an intermediate top. The index is witnessing selling pressure in the range of 10600-10650.
India VIX move up sharply by 9.05 percent at 19.36 levels. The spurt in volatility after the decline of the last two weeks suggests bears are putting pressure at higher zones. VIX has to cool down below 16 zones to get the next leg of smooth upside rally in the market.
According to Pivot charts, the key support level is placed at 10,415.63, followed by 10,349.07. If the index starts moving upwards, key resistance levels to watch out are 10,597.13 and then 10,712.07.
The Nifty Bank index closed at 25,539.8 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 25,387.53, followed by 25,235.27. On the upside, key resistance levels are placed at 25,799.63, followed by 26,059.46.
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.
Apple, Goldman Sachs send Wall Street tumbling
Wall Street’s major indexes fell on Monday, with the S&P 500 sliding 2 percent, weighed by technology and financial stocks as shares of Apple Inc and Goldman Sachs Group Inc came under pressure.
Apple shares fell 5.0 percent after several suppliers to the company, including Lumentum Holdings Inc whose components power the iPhone’s Face ID technology, cut their forecasts. Apple’s decline impeded the tech-heavy Nasdaq, which fell more than 2 percent.
The Dow Jones Industrial Average fell 602.12 points, or 2.32 percent, to 25,387.18, the S&P 500 lost 54.79 points, or 1.97 percent, to 2,726.22 and the Nasdaq Composite dropped 206.03 points, or 2.78 percent, to 7,200.87.
Asian shares sell-off on Wall Street tech rout, oil slides
Asian shares skidded on Tuesday after a rout in tech stocks put Wall Street to the sword, while a sharp drop in oil prices and political risks in Europe pushed the dollar to 16-month highs as investors dumped riskier assets.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.7 percent to a 1-1/2 week trough, with Australian shares sinking 1.6 percent. Japan's Nikkei dived 3.1 percent led by losses in electric machinery makers and suppliers of Apple's iphone parts.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 55 points or 0.52 percent. Nifty futures were trading around 10,445-level on the Singaporean Exchange.
Retail inflation softens to 3.31% in Oct versus 3.7% in Sept
India’s retail inflation eased to 3.31 percent in October, lowest in a year, as compared with 3.70 percent in September, driven by cheaper food items, data released by the government showed. Retail inflation, measured by Consumer Price Index (CPI), stood at 3.58 percent in October last year.
According to central banks’ latest estimate, retail inflation is projected at 3.7 percent in the July-September quarter, 4.8 percent in the January-March quarter and 3.8-4.5 percent during October-March of 2018-19.
Despite lower inflation, experts feel the sequential hardening in the core inflation or non-food, fuel inflation, driven by miscellaneous items may pose some concern.
Factory output shows flat growth at 4.5% in Sept
India's industrial production grew marginally at 4.5 per cent in September as against 4.3 per cent in August, data released by the statistics office on November 12 showed.
"This (the monthly trend in factory output data) broadly indicates that there has not been any significant acceleration in factory output despite waning of the impact of both demonetisation and implementation of GST," said Devendra Pant, Chief Economist at India Ratings.
Consumer durables output also remained unchanged at 5.2 per cent, despite the festive season. Consumer non-durables grew 6.1 per cent in September as compared to 6.3 per cent in the previous month.
Oil prices fall as Trump counters OPEC plan to cut supply
Oil prices fell by more than 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after US President Donald Trump put pressure on OPEC not to cut supply to prop up the market.
US West Texas Intermediate crude oil futures were at $59.06 per barrel at 0115 GMT, down 87 cents, or 1.5 percent from their last settlement. International benchmark Brent crude oil futures were at $69.17 per barrel, down 95 cents, or 1.4 percent, from their last close.
UBS sees sharp dip in GDP in H2, full-year growth at 7.3%
Swiss brokerage UBS cut the country's growth estimate to 7.3 percent from the earlier 7.5 percent, citing a likely deceleration in the second half of the fiscal due to global headwinds and the rising oil prices. The lower forecast follows similar moves by other analysts, including those at the global rating agency Moody's, which also expects GDP growth to come at 7.3 percent.
However, in the last monetary policy review in October, the RBI had stuck to its 7.4 percent forecast. UBS said the real GDP growth will slow down sharply to 6.7-7 percent in the second half from 8.2 percent in the June quarter, bringing the full-year growth lower to 7.3 percent.
"Headwinds, including tighter financial conditions, high oil prices, slowing global growth and a still muted private corporate capex recovery are weighing on the growth momentum," it explained in a note on November 12.
Rupee declines 39 paise against dollar
The rupee on November 12 dropped by 39 paise to settle at 72.89 against the US currency as oil prices rebounded after Saudi Arabia announced plans to cut production and the dollar strengthened in global markets.
The rupee opened lower at 72.74 and fell further by 57 paise to the day's low of 73.07 as crude oil prices surged over 1 percent to reclaim $71 per barrel level, cutting short its 10-day selling trend. The rupee finally settled at 72.89 per dollar, showing a loss of 39 paise or 0.54 percent over the last close.
PE/VC investments jump 50% to $3.1 bn in Oct: Report
Six large deals of over $100 million each resulted in a 50 percent year-on-year jump in the total venture investments in the country in October to $3.1 billion, a report said. The total investments by private equity (PE) and venture capital (VC) funds in 2018 have gone up to $25.2 billion, only $1 billion short of last year's record inflows, consultancy firm EY said in its monthly report.
October saw Warburg, Temasek, Softbank and a few other investors pump in $1.3 billion in the Africa business of Bharti Airtel for a 28.4 percent stake, Xander's $350 million buyout of Phoenix's Hyderabad office project and Advent's $326 million buyout of Manjushree Technopack, it said.
RBI may allow some banks out of PCA framework: Report
The Reserve Bank of India (RBI) may consider letting some banks out of the Prompt Corrective Action (PCA) framework, according to a report by CNBC-TV18. Banks with declining net non-performing assets or those that can be merged with larger entities may be considered to be kept out of PCA.
Among other measures, the RBI may allow banks to include expected income from Insolvency and Bankruptcy Code (IBC) cases on their books by applying easier restructuring of the debt in the Small and medium enterprises (SMEs) segment.
Mrs Bectors Food, Sansera Engineering get Sebi's go ahead for IPO
Biscuit-maker Mrs Bectors Food Specialities and auto-components maker Sansera Engineering have received markets regulator Sebi's go ahead to launch initial share-sale offers.
According to its draft papers, Mrs Bectors Food's IPO will see sale of shares to the tune of Rs 800 crore by existing shareholders and promoters. Linus, Mabel, GW Confectionary Pte Ltd, GW Crown Pte Ltd and Anoop Bector will be offering stocks in the initial share-sale. "Listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders," the company said.
591 companies to report Sept quarter numbers today
As many as 591 companies will declare their results for the quarter ended September later today which include names like Apollo Tyres, Ashok Leyland, Corporation Bank, NMDC, Sun Pharma, and Tata Steel among others.
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 November 13, 2018 Adani Power is present in this list.
With inputs from Reuters & other agencies
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