The Nifty50 after opening gap down traded in a big range of around 90 points throughout the session and closed flat with a positive bias on Friday. The consolidation for last three consecutive sessions indicated that traders turned cautious after sharp.
The index made small bullish candle and formed 'Long Legged Doji' pattern on the daily charts. On the weekly charts, it formed 'Shooting Star' kind of pattern. A typical long-legged Doji pattern is formed when the opening price is almost equal to the closing price but there was a lot of intraday movement on either side.
The Nifty50 opened at 11,675.85 and closed at 11,680.50. After opening with negative bias, the index immediately rebounded to hit an intraday high of 11,727.65 but at the end of first one hour of trade it corrected to hit day's low of 11,640.10. Overall it remained rangebound throughout the session.
According to Pivot charts, the key support level is placed at 11,637.83, followed by 11,595.17. If the index starts moving upwards, key resistance levels to watch out are 11,725.43 and 11,770.37.
The Nifty Bank index closed at 28,061.75, down 41.50 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 27,949.37, followed by 27,836.93. On the upside, key resistance levels are placed at 28,165.77, followed by 28,269.73.
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 mixed as US-Canada trade talks end
The S&P 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as Canada and the United States concluded trade talks without resolution ahead of the Labor Day weekend. Capping a low-volume, late-summer week marked by tariff-related volatility, all three major US indexes posted net gains for the period. The indexes were also up for the month of August, with the Nasdaq posting its largest monthly gain since January.
The Dow Jones Industrial Average fell 22.1 points, or 0.09 percent, to 25,964.82, the S&P 500 gained 0.39 points, or 0.01 percent, to 2,901.52 and the Nasdaq Composite added 21.17 points, or 0.26 percent, to 8,109.54.
Asian stocks dip on trade, emerging market woes
Asian stocks dipped on Monday on worries about further escalation of the US-China trade war and unstable emerging market currencies. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2 percent while Japan's Nikkei fell 0.4 percent though trade could be subdued due to a US market holiday on Monday.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 21 points or 0.18 percent. Nifty futures were trading around 11,750-level on the Singaporean Exchange.
India industry cheers as economy grows at 2 year high of 8.2% in Q1
With India's economy growing at a 2-year high of 8.2 percent in the April-June quarter, industry bodies said that it was an outcome of reforms undertaken by the government in the last four years, and revival is on track. The GDP growth in the April-June quarter, which cemented India's position as the fastest growing major economy, came on the back of good performance by manufacturing and farm sectors, according to government data released on Friday.
"The recovery that is shaping up is broad based and there are clear signs of revival in domestic demand and investments. The double-digit growth in manufacturing comes on back of a low base but does reflect the positive momentum already seen in some of the key lead indicators of economic activity," said Ficci President Rashesh Shah.
GDP growth to exceed 7.5% this fiscal: FinMin
Enthused by 8.2 percent GDP growth in the first quarter of 2018-19, the Finance Ministry expressed the hope that economy may expand at 7.5 percent in the current fiscal. The country's economy is on steady growth path, Economic Affairs Secretary S C Garg said while commenting on the April-June quarter growth number.
The robust performance this quarter gives hope that growth could exceed even estimates 7.5 percent this fiscal, he said. He also said that the fiscal deficit will not exceed 3.3 percent of the GDP in 2018-19. On the falling rupee, he said it will soon be in the range of Rs 68-70 against the US dollar.
US ratchets up pressure on Canada, Mexico, trade partners
US president Donald Trump has ratcheted up pressure on Canada and other trading members, including the European Union, threatening that if they refuse to accept Washington’s trade demands they will risk losing “free military protection”, after talks between the US and Canada for revamping the trade deal, which includes Mexico, failed.
After securing the agreement with Mexico on its terms, the US piled on the pressure on Canada with its specific demands. Canada, however, found it difficult to agree to some of the US’ demands, Mint reported.
Economy to grow at higher rate in coming quarters: Niti Aayog
Terming as 'excellent news' the 8.2 percent GDP growth in the first quarter of 2018-19, Niti Aayog Vice Chairman Rajiv Kumar said on Friday that it will surely be higher in the coming quarters. The Indian economy grew at 8.2 percent in the first quarter of 2018-19 on good show by manufacturing and farm sectors.
"The growth rate will surely be higher in the coming quarters," Kumar said in a tweet. The growth cemented India's position as the fastest growing major economy, clocking higher expansion rate than China's 6.7 in the same quarter.
July core industries output at 6.6%
Output of the eight core industries stood at 6.6 percent in July against 7.6 percent (month on month). The June eight core industries growth was revised from 6.7 percent to 7.6 percent. The output for steel in July grew 6 percent against a growth of 3.4 percent in June. Cement output for July grew 10.8 percent against 13.2 percent rise in June.
The electricity output grew 4.8 percent versus 8.4 percent rise (MoM). The coal sector output grew 9.7 percent against 11.5 percent (MoM) while the crude output slowed from 3.4 percent to 5.4 percent (MoM). July natural gas output came in at 5.2 percent against 2.7 percent (MoM) while the July petroleum and refinery products output grew 12.3 percent against a rise of 12.1 percent (MoM). Fertilisers output grew 1.3 percent in July, as compared to a rise of 1 percent (MoM).
China's exports losing steam amid Trump's trade war: Report
China's powerful export machine is "quickly losing steam" amid the trade war with the US, according to Beijing's official purchasing manager index. China and the US are currently involved in a trade war slapping billions of dollars of tariffs on each other goods following President Donald Trump's demand that Beijing bring down the trade deficit to USD 375 billion.
The trade war seems to have begun impacting China - often referred to as the world's factory - as it is the biggest global exporter. "China is quickly losing steam amid threats of a full-blown trade war," the Hong Kong-based South China Morning Post reported.
Brent crude oil dips on rising OPEC output
Brent crude oil prices dipped on Monday amid rising supply from OPEC and the United States, although expectations of falling Iranian output once US sanctions bite from November provided some support.
International Brent crude oil futures were at USD 77.59 per barrel at 0046 GMT, down 5 cents from their last close. US West Texas Intermediate (WTI) crude futures were at USD 69.81 per barrel, virtually unchanged from their last settlement.
OPEC Aug oil output hits 2018 high despite Iran losses: Survey
OPEC oil output has risen this month to a 2018 high as Libyan production recovered and Iraq's southern exports hit a record, a Reuters survey found, although a cut in Iranian shipments due to US sanctions limited the increase.
The 15-member Organization of the Petroleum Exporting Countries has pumped 32.79 million barrels per day in August, the survey on Friday found, up 220,000 bpd from July's revised level and the highest this year.
Forex reserves rise by $445.4 mn to $401.293 bn
The country's foreign exchange reserves rose by USD 445.4 million to USD 401.293 billion in the week to August 24 on the back of increase in currency assets, RBI said on Friday. In the previous week, the overall reserves had witnessed a drop of USD 33.2 million to USD 400.84 billion. The reserves had been declining in the past few weeks as the Reserve Bank of India (RBI) is selling the US dollar to contain depreciation in the rupee, which breached the 71 mark against the greenback, its lowest ever.
In the week to August 24, foreign currency assets, a major component of the overall reserves, swelled by USD 386.6 million to USD 376.591 billion, as per the RBI data released on Friday. Gold reserves rose by USD 35.7 million to USD 20.763 billion for the reporting week, the apex bank said.
Rupee slumps 26 paise to close at historic low of 71 level
The rupee on Friday slumped by 26 paise breach the historic low of 71 level for the first time against the US currency due to firming crude oil prices and strong month-end demand from oil importers. At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74.
The rupee pared some of the losses to touch a day's high of 70.85 but slumped in late trade to close at its lifetime trading low of 71.00, showing a loss of 26 paise or 0.37 per cent over the previous close.
Eurozone unemployment falls to decade low of 8.2%
Unemployment across the 19-country eurozone has fallen to its lowest level since the most acute phase of the global financial crisis a decade ago. Eurostat, the European Union's statistics agency, revealed that the unemployment rate in July was 8.2 percent. That was unchanged from the previous month's rate, which Eurostat revised down from 8.3 percent.
The rate is now the lowest since November 2008, when unemployment was soaring in the immediate aftermath of the collapse of US investment bank Lehman Brothers, the most symbolic moment of the financial crisis.
FPIs continue bullish stance on India, infuse Rs 5,100 cr in Aug
Foreign investors have infused over Rs 5,100 crore into the country’s capital market in August — the second consecutive month of inflow — on improvement on the macro front, better corporate earnings and correction in the mid and small-cap space. The latest inflow comes following a net infusion of over Rs 2,300 crore in the capital market — both equity and debt — in July. Prior to that, overseas investors had pulled out over Rs 61,000 crore during April-June.
According to the latest depository data, foreign portfolio investors (FPIs) pumped in a net sum of Rs 1,775 crore into equities in August and a net amount of Rs 3,414 crore into the debt market, taking the total to Rs 5,189 crore.
With inputs from Reuters & other agencies
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