A few cues from the market in India and abroad that could help you with your trade today.
The positive momentum built up from the start of week fizzled out in the last session after Finance Minister Nirmala Sitharaman presented the
Budget and Nifty ended with 0.2 percent gains for the week ended July 5, forming Shooting Star formation on the weekly scale.
But on July 5, the index lost over a percent to close at 11,811.15, forming large bearish candle on daily charts while Sensex also shed a percent to end at 39,513.39.
The BSE Midcap and Smallcap indices underperformed frontliners, falling 1.4 percent on July 5 and over half a percent for the week.
According to Pivot charts, the key support level is placed at 11,745.47, followed by 11,679.73. If the index starts moving upward, the key resistance levels to watch out are 11,929.37 and 12,047.53.
Nifty Bank closed at 31,475.80, up 3.95 points on July 5. The important Pivot level, which will act as crucial support for the index, is placed at 31,312.4, followed by 31,149.0. On the upside, key resistance levels are placed at 31,650, followed by 31,824.2.
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 stocks dipped on Friday, as the S&P 500 snapped a three-day streak of record closes, following an unexpectedly strong US payrolls report that led investors to reassess how dovish a stance the Federal Reserve may take at its next meeting.
The US Labor Department data showed nonfarm payrolls rose by 224,000 jobs in June, the most in five months, and solidly beating economists’ expectation of 160,000 additions.
The Dow Jones Industrial Average fell 43.88 points, or 0.16 percent, to 26,922.12, the S&P 500 lost 5.41 points, or 0.18 percent, to 2,990.41 and the Nasdaq Composite dropped 8.44 points, or 0.1 percent, to 8,161.79.
Asian shares slipped on Monday as investors wagered on a less aggressive policy easing in the United States, while the Turkish lira held near two-week lows after the country’s president dismissed its central bank governor over the weekend.
MSCI's broadest index of Asia-Pacific shares outside Japan stumbled 0.3 percent, with South Korea's KOSPI off 1 percent and Australian shares down 0.4 percent. Japan's Nikkei faltered 0.6 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 51 points or 0.43 percent. Nifty futures were trading around 11,766-level on the Singaporean Exchange.
Rupee settles 8 paise higher at 68.42 vs USD
The rupee pared early losses on Friday to settle 8 paise higher at 68.42 against the US dollar as market participants said fiscal deficit and gross borrowings announced in the budget were broadly in-line with expectations.
In a volatile session at the interbank foreign exchange, the local unit opened at 68.55 per dollar, but soon recovered lost ground and touched a high of 68.40, as Finance Minster Nirmala Sitharaman presented her maiden budget in Parliament. The domestic currency finally ended at 68.42 against the greenback, higher by 8 paise over its previous closing.
Oil extends gains, supported by surprise US jobs report
Crude prices rose on Monday, adding to gains in the previous session on better-than-expected US jobs data, although gains were tempered by worries over the prolonged Sino-US trade war.
Brent crude futures were up 10 cents, or 0.2 percent, by 0048 GMT at USD 64.33. US West Texas Intermediate (WTI) was up 14 cents, or 0.2 percent, at USD 57.65 a barrel.
China's June forex reserves rise to $3.119 trillion
China’s foreign exchange reserves rose USD 182.3 billion in June to USD 3.119 trillion, central bank data showed on Monday. Economists polled by Reuters had expected China’s reserves, the world’s largest, would rise USD 2 billion to USD 3.103 trillion as hopes for a trade truce with the United States helped to ease downward pressure on the yuan currency.
The value of China’s gold reserves rose to USD 87.27 billion from USD 79.83 billion at the end of May.
Govt plans to issue overseas bonds in second half of current fiscal, says Finance Secretary
The government will soon start the process of raising funds from overseas markets by issuing sovereign bonds in the second half of the fiscal, Finance Secretary Subhash Chandra Garg said.
Finance Minister Nirmala Sitharaman in Budget 2019-20 announced that the government would start raising a part of its gross borrowing programme from external markets in foreign currencies. She added that India's sovereign external debt-to-GDP level is among the lowest globally at less than 5 percent.
RBI gives Rs 1.34 lakh cr liquidity boost to banks
The Reserve Bank of India (RBI) announced liquidity easing measures on July 5 to improve flow of credit to non-banking finance companies (NBFCs) and housing finance companies (HFCs), following steps taken by the government to ease stress in the sector.
The move comes after the Finance Minister Nirmala Sitharaman said in her maiden Budget presentation that the government will be providing a one-time six-month partial guarantee of Rs 1 lakh crore to state-run banks for purchasing consolidated high-rated pooled assets of financially-sound NBFCs.
"In order to enable the banks to implement this announcement and deal with the NBFCs/HFCs issue effectively, the RBI will provide required liquidity backstop to banks against their excess G-Sec holdings," the central bank said, adding that a circular on this will be issued soon.
China will further open up forex market: regulator
China will fend off cross-border capital flow risks and continue to open up its foreign exchange market, the forex regulator said on Sunday.
The regulator will deepen forex reform and strengthen a crackdown on forex-related irregularities, the State Administration of Foreign Exchange said in a statement on its website.
Foreign investors pull out Rs 475 cr from Indian markets in first week of July
Reversing their five-month buying streak, foreign investors withdrew a net sum of Rs 475 crore from the Indian capital markets in the first week of July amid global trade tensions and pre-Budget anticipation.
Prior to this, foreign portfolio investors (FPIs) were net buyers for five consecutive months. FPIs invested a net Rs 10,384.54 crore in June, Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February into the Indian capital markets (both equity and debt).
As per latest depositories data, FPIs withdrew a net amount of Rs 3,710.21 crore from equities but invested Rs 3,234.65 crore in the debt segment during July 1- 5, resulting in a net outflow of Rs 475.56 crore.
US job creation soars 224,000 in June; unemployment rises to 3.7%
Job creation roared back to life in the US economy in June, wiping away fears of a slowdown as employers rushed to hire in transportation, construction and other areas, the government reported on July 5. The US jobs engine added 224,000 net new positions last month, smashing forecasts, the Labor Department said in the closely-watched report, while the unemployment rate ticked up to 3.7 percent as more workers stepped off the sidelines to enter the labor force.
After an unexpectedly weak May, the vigorous June rebound should quiet talk of a steep drop-off in economic activity and delight President Donald Trump as he prepares to seek reelection next year.
Dollar near 3-week high, US job gains weaken case for large Fed cut
The dollar rose broadly on Monday after strong US jobs growth in June suggested the Federal Reserve will not aggressively cut interest rates later this month. US nonfarm payrolls rebounded in June to 224,000, the most in five months, data showed on Friday, beating economists’ consensus estimate of 160,000.
The solid outcome virtually wipes out chances for a half point Fed rate cut at the end of July, but moderate wage gains among other data showing the world’s largest economy was losing steam could still encourage the central bank to cut rates by 25 basis points.
Two stocks under F&O ban period on NSE
For July 8, DHFL and Reliance Capital are under the F&O ban period. Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies