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The Nifty bounced back after hitting its 50-day exponential moving average (DEMA) placed at 10,562 on Wednesday to close above its crucial resistance level of 10,600. It made a bullish candle on intraday basis because the closing level was higher than the opening level.
The 50-share index, which opened at 10,579, rose to an intraday high of 10,648 before bears took control and pushed the index below 10,600. The index touched an intraday low of 10,558 before closing the day at 10,614.35, down 18.95 points.
The Nifty also witnessed a sharp recovery post 1 PM but the index still closed in red but above its opening levels which made a bullish candle on the daily charts even though the Nifty closed nearly 19 points lower.
Technical chartists advise investors to remain cautious ahead of the expiry and wait for the index to close above 10,700-10,717 levels for the momentum to continue. However, a breach of 10,550 on the downside could take Nifty towards 10,480 levels, suggest experts.
India VIX moved up by 2.16 percent at 13.41 levels. The Nifty index is flattish on expiry to expiry basis as April series closed at 10,617.80 and it is hovering near to the same zones.
The Nifty closed at 10,614.3 on Wednesday. According to Pivot charts, the key support level is placed at 10,565.63, followed by 10,516.97. If the index starts moving upward, key resistance levels to watch out are 10,655.83 and 10,697.37.
The Nifty Bank index closed at 26,327.8. The important Pivot level, which will act as crucial support for the index, is placed at 26,070.6, followed by 25,813.4. On the upside, key resistance levels are placed at 26,495.2, followed by 26,662.6.
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 close higher
US stocks ended higher on Wednesday, and the S&P 500 and Dow registered their biggest daily percentage gains since May 4, on signs of easing political turmoil in Italy and as a surge in oil prices boosted energy stocks.
The S&P 500’s gains erased the losses of Tuesday, when the index posted its first 1 percent drop in May. Fears about instability in Italy and the possibility of the country’s exit from the euro sent investors piling into safety assets on Tuesday. The US Treasury market, on a total return basis, on Tuesday had its best day since at least July 2011, according to the Bloomberg Barclay’s Treasury Aggregate Index.
The Dow Jones Industrial Average rose 306.33 points, or 1.26 percent, to 24,667.78, the S&P 500 gained 34.15 points, or 1.27 percent, to 2,724.01, and the Nasdaq Composite added 65.86 points, or 0.89 percent, to 7,462.45.
Asia stocks trade on positive note
Asian stocks rebounded from a two-month trough on Thursday, while the euro enjoyed a respite after sinking to its lowest in 10 months as political turmoil in Italy that had roiled global financial markets showed signs of easing.
MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.3 percent having slumped to its weakest since the start of April on Wednesday. South Korea’s KOSPI added 0.6 percent and Japan’s Nikkei advanced 0.5 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 25 points or 0.24 percent. Nifty futures were trading around 10,656-level on the Singaporean Exchange.
Cement output grows 6.3% to 280 MT in FY18: Icra
Buoyed by improving demand, domestic cement output grew 6.3 percent to 298 million tonne (MT) in 2017-18, according to credit rating firm Icra. It also said that going by the prevalent trend, the growth momentum is expected to continue in the current financial year and the industry is likely to report a growth of 6 percent.
"In 2017-2018, cement production registered a growth of 6.3 percent at 298 MT, as compared to 280 MT in 2016-2017, with the bulk of growth reported during the second half of FY'18," Icra said in a report.
Exports from SEZs rise 5% to Rs 20,548 cr in April: EPCES
Exports from the country's special economic zones (SEZs) grew 5.44 percent in April to Rs 20,548 crore as against Rs 19,488 crore in the same month a year ago, EPCES today said. According to Export Promotion Council for EOUs & SEZs (EPCES), highest growth in outward shipments was recorded from the Cochin SEZ which witnessed a 704 percent jump from Rs 461 crore in April last year to Rs 3,708 crore this year.
"Total exports in April this year from SEZs amounted to Rs 20,548 crore as against Rs 19,488 crore in April 2017," said Vinay Sharma, Officiating Chairman of EPCES, adding that the government's policies have managed to register a healthy growth roadmap for manufacturing and service industry.
MSCI may put India, Brazil on notice over investor access
The Morgan Stanley Capital International (MSCI) on Wednesday said they are placing emerging markets including India and Brazil on notice for limiting investor access. The weights of India and Brazil markets could be capped on MSCI Indexes, said New York-based company.
Countries like Turkey, South Korea, India and Brazil restrict use of local data in derivatives created by offshore exchanges and India also has a lengthy and burdensome mandatory registration process for foreign investors, the MSCI said.
GDP data for the quarter ended March will be in focus
On Wednesday, the credit rating agency Moody's slashed India's GDP growth forecast for 2018 from 7.5 percent to 7.3 percent. Moody's, however, maintained its 2019 growth forecast at 7.5 percent. Moody's said growth should benefit from an acceleration in rural consumption, supported by higher minimum support prices and a normal monsoon.
For the quarter ended March, most experts feel that the GDP growth is likely to surprise on the upside. Gross domestic product expanded an annual 7.3 percent in the first three months of 2018, the May 24-29 poll of 55 economists predicted, a touch faster than the 7.2 percent achieved in the last three months of 2017 — and well above China’s pace of 6.8 percent for the quarter ending in March, said a Reuters poll.
India's growth likely topped 7% again in Jan-March quarter
India likely retained the position of world’s fastest growing major economy in the January-March quarter, surpassing China’s growth of 6.8 percent, driven by gains in manufacturing and consumer spending.
The median in a Reuters poll on the latest quarter’s annual growth was 7.3 percent, the best pace since July-September 2016, the quarter before the
government unexpectedly scrapped high-value currency notes. Forecasts for January-March ranged from 6.9 to 7.7 percent.
US to hit EU with steel and aluminum tariffs
The Trump administration is reportedly planning to impose import tariffs on European steel and aluminum after finding no satisfaction in its effort to win trading concessions on the issue.
An announcement dropping the EU from an exemption to global tariffs of 25 percent on imported steel, and 10 percent on aluminum, could come on Thursday, according to the Wall Street Journal.
Petrol price cut by 7 paise, diesel by 5 paise per litre
Petrol price was today cut by 7 paise a litre and diesel by 5 paise - the second reduction in as many days on the back of softening international oil rates. Petrol in Delhi now costs Rs 78.35 a litre, down from Rs 78.42, according to a price notification issued by state-owned oil firms.
Diesel rates have been cut to Rs 69.25 per litre from Rs 69.30. This is the second reduction in rates coming after a 16 day relentless price hike that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls.
Oil prices dip on unexpected growth in US crude stocks
Oil prices dropped on Thursday, weighed down by a surprise rise in U.S. crude inventories and by expectations that OPEC and other producers could increase output at a meeting in June.
Brent crude was down 20 cents at $77.30 per barrel at 0041 GMT, after settling the last session up 2.8 percent.
U.S. West Texas Intermediate crude <CLc1> was down 20 cents at $68.01 a barrel. In the previous session, it settled up $1.48, or 2.2 percent, at $68.21 per barrel.
MFs net buyers of stocks for 22 months in a row, mop up Rs 94 bn in May
Mutual funds (MFs) have purchased stocks worth nearly Rs 94 billion in May. This is the 22nd consecutive month of straight net buying in the sector. The buying comes despite choppiness in the market, which saw the benchmark Sensex swing 1,200 points from a high of 35,536 to a low of 34,344.
Foreign portfolio investors (FPIs), on the other hand, have been net sellers in the market this month, having pulled out Rs 86 billion. Fund managers are advising investors not to panic when markets turn volatile.
8 stocks under ban period on NSE
Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For May 31, 2018 stocks such as Balrampur Chini, DHFL, GMR Infra, IDBI, IDFC Bank, JP Associates, Just Dial and Reliance Communications are present in this list.
With inputs from Reuters & other agencies
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