The index closed in green with gains of 2 points but it formed a bearish candlestick pattern which suggests momentum seems to be fading. For bulls to take complete control of D-Street, a close above 10,785 is required else we could consolidate in a narrow range.
The Nifty opened at 10,757.90 rose marginally to an intraday high of 10,758.55. It slipped towards its crucial 5-days exponential moving average (DEMA) where it took support at 10,691 before bouncing back above 10,700 to close at 10,717.80.
Investors are advised to tread with caution and trade with a trailing stop loss placed below 10,600 levels. A close below this level could extend the selling pressure, suggest experts.
“It appears to be a day of consolidation on the bourses as Nifty moved in a narrow range of around 70 points before signing off the day with a “Bearish Belt Hold kind” of candle formation on candlestick charts as it remained under pressure from the opening tick,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
India VIX moved up by 2.14 percent at 14.05. On the options front, maximum Put OI is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.
According to Pivot charts, key support level is placed at 10,685.3, followed by 10,652.8. If the index starts moving upwards, key resistance levels to watch out are 10,754.4 and 10,791.0.
The Nifty Bank index closed at 26,090.5. The important Pivot level, which will act as crucial support for the index, is placed at 25,991.33, followed by 25,892.17. On the upside, key resistance levels are placed at 26,152.93, followed by 26,215.37.
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 erases losses after Trump quits Iran deal
Wall Street cut losses to end little changed on Tuesday while energy stocks rallied after US President Donald Trump said the United States would quit the Iran nuclear deal, confirming what many investors had expected.
The Dow Jones Industrial Average ended 0.01 percent higher at 24,360.21, while the S&P 500 ended down 0.03 percent to 2,671.92. The Nasdaq Composite added 0.02 percent to 7,266.90.
Asian markets trade mixed
Shares of Asian markets were trading mixed early on Wednesday after US President Donald Trump pulled out of the Iran nuclear deal. Japan's Nikkei 225 declined 0.38 percent while South Korea's benchmark Kospi was flat.
SGX Nifty
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 16 points or 0.15 percent. Nifty futures were trading around 10,725-level on the Singaporean Exchange.
US to pull out of Iran nuclear deal: Donald Trump
President Donald Trump announced on Tuesday that the US will pull out of the landmark nuclear accord with Iran, dealing a profound blow to US allies and potentially deepening the president's isolation on the world stage.
Trump's decision means Iran's government must now decide whether to follow the US and withdraw or try to salvage what's left of the deal. Iran has offered conflicting statements about what it may do — and the answer may depend on exactly how Trump exits the agreement.
China's Xi Jinping, North Korea's Kim Jong Un meet ahead of Trump summit
Chinese President Xi Jinping and Kim Jong Un met in northeast China on Tuesday in an unannounced visit by the North Korean leader ahead of an expected summit with US President Donald Trump.
"After the first meeting between me and Comrade Chairman (Kim), both China-DPRK relations and the Korean peninsula situation have made positive progress. I feel happy about it," Xi said, according to Xinhua. For his part, Kim was quoted as saying: "These are the positive outcomes of the historic meeting between me and Comrade General Secretary (Xi)."
FMCG revenues seen rising 300-400 bps in FY19: CRISIL
With a revenue growth of Rs 3.4 lakh crore, the fast moving consumer goods (FMCG) sector is seen rising by around 300-400 basis points to ~11-12 percent in FY19 compared to ~8 percent in FY18, according to a CRISIL report.
"Disposable incomes and demand are expected to rise following higher minimum support prices for crops, more non-agriculture rural employment, and expectation of adequate monsoon. Continuing product launches and greater acceptance of ayurvedic and herbal products will also help," the report said.
Oil shines, shares rattled as Trump dumps Iran nuclear deal
Crude oil prices jumped back to near 3 1/2-year highs on Wednesday after US President Donald Trump pulled his country out of an international nuclear deal with Iran, sparking worries about global oil supplies.
US West Texas Intermediate crude futures traded at USD 70.24 per barrel, up 1.7 percent and near Monday’s high of USD 70.84, which was its highest level since November 2014. Brent crude futures rose 1.9 percent to USD 76.26 per barrel, within a whisker of its 3 1/2-year high of USD 76.34 set on Monday.
Vijay Mallya loses $1.55 bn assets case in UK court
Vijay Mallya, undergoing an extradition trial in a UK court over fraud and money laundering charges by Indian authorities, today lost a lawsuit filed by 13 Indian banks in the UK High Court seeking to collect from him more than USD 1.55 billion.
The victory for the banks will enable them to enforce the Indian judgment against Mallya's assets in England and Wales. The worldwide freezing order prevents him from removing any assets from England and Wales up to that value or to in any way dispose of, deal with or diminish the value of his assets in or outside of this jurisdiction, up to the same value.
41 companies to report March quarter numbers today
As many as 41 stocks will be declaring their results for the quarter ended March later today which include names like Asian Hotels, Arvind, Eicher Motors, Federal Bank, Jindal Steel & Power, Jubilant Life Sciences, Oriental Hotels, and Parag Milk Foods among others.
Rupee recovers from 15-month lows, ends up 5P at 67.08 against dollar
The rupee on Tuesday recovered from 15-month lows to close five paise higher at 67.08 against the US currency on suspected RBI intervention and stray dollar demand. The local unit witnessed wide swings between a high of 66.98 and a low of 67.27 - fresh 15-month low in day trade.It finally settled at 67.08, showing a gain of 5 paise, or 0.07 percent.
Maruti to recall 52,686 new Swift, Baleno cars to fix brake vacuum hose
Maruti Suzuki India will undertake a 'service campaign' for new Swift and Baleno models to inspect a possible fault in the brake vacuum hose. Around 52,686 new Swift and Baleno vehicles manufactured between December 1, 2017 and March 16, 2018, will be covered in this campaign.
With this, the automotive industry has so far this calendar year recalled nearly 1.4 lakh units to fix faults including untimely inflation of airbags or a malfunction in its deployment, sudden engagement of neutral gear when vehicle is in motion and loss of control of vehicle in high speed.
Indostar Capital garners Rs 553 cr from anchor investors
Non-banking finance company Indostar Capital Finance on Tuesday said it has raised a little over Rs 553 crore from anchor investors, ahead of its initial public offering, which opens today. The company's IPO committee has finalised allocation of 96,71,329 equity shares to as many as 24 investors at Rs 572 apiece, also the upper price band for the offer, Indostar Capital said in a statement.
Among the anchor investors are SBI Mutual Fund (MF) HDFC MF, Aditya Birla Sunlife MF, Fidelity, EastBridge, ICICI Lombard General Insurance, ICICI Prudential Life Insurance and Bajaj Alliance Life.
6 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 9, 2018 stocks such as Balrampur Chini, DHFL, IRB, Jet Airways, Just Dial and Wockhardt are present in this list.
With inputs from Reuters & other agencies
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