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The Nifty struggled around 10,690-10,700 levels and despite an intraday breakout above 10,700, bulls failed to sustain above 10690 on a closing basis. But, the up move could well extend towards 10,777-10,800 and a stop loss below 10,628 can be kept for all the long positions, suggest experts.
“Bulls continued their northward journey as they opened the show with a gap up on the first day of the week before signing off the session with a decent bullish candle. However, it appears that close to 10,700 levels they are witnessing some sort of selling pressure,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
India VIX moved up by 3.28 percent at 13.05 levels. On the options front, maximum Put OI is intact at 10,500 followed by 10,600 strikes while maximum Call OI is seen at 10,800 followed by 11,000 strikes.
According to Pivot charts, the key support level is placed at 10,649.53, followed by 10,610.37. If the index starts moving upward, key resistance levels to watch out are 10,718.83 and 10,748.97.
The Nifty Bank index closed at 26,614.2. The important Pivot level, which will act as crucial support for the index, is placed at 26,354.16, followed by 26,094.13.
On the upside, key resistance levels are placed at 26,793.96, followed by 26,973.73.
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.
Asian shares fall on Italian turmoil
Asian shares fell on Tuesday and the euro slipped back to 6-1/2 month lows as early elections loomed in Italy, but a revival in diplomatic talks with North Korea and a retreat in oil prices from recent highs supported sentiment
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3 percent after three consecutive sessions of gains.
Japan's Nikkei skidded 0.8 percent while South Korean shares slipped 0.5 percent. Australia's benchmark index was a touch firmer. Liquidity is expected to be relatively thin with market holidays in Singapore, Malaysia, Indonesia and Thailand.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 27.50 points or 0.26 percent. Nifty futures were trading around 10,666.50-level on the Singaporean Exchange.
India's Q4 GDP growth seen between 7.3-7.5%: FinMin
The Indian economy is expected to grow between 7.3 to 7.5 percent in the March quarter, Economic Affairs Secretary Subhash Chandra Garg told CNBC-TV 18 on Monday. Garg said the country was expected to grow at 6.7 percent in the 2017/18 financial year that ended in March.
PSU Garden Reach Shipbuilders gets Sebi's go ahead for IPO
State-owned Garden Reach Shipbuilders and Engineers has received markets regulator Sebi's go ahead to float an initial public offering. The warship maker had filed its draft red herring prospectus (DRHP) with Sebi on March 26 and obtained its "observations" on May 22, as per the latest update with the markets watchdog.
Going by the draft papers, Garden Reach Shipbuilders' IPO will see government selling 20,046,600 equity share -- or a 17.5 percent stake -- in the company. IDBI Capital Markets and Securities and Yes Securities (India) are the merchant bankers managing the IPO. The equity shares of the company are proposed to be listed on the BSE and NSE.
SEBI may soon allow issuers to contest credit ratings assigned by agencies
The Securities and Exchanges Board of India may soon allow issuers of debt to contest ratings by credit rating agencies. The proposal was approved at the regulator’s board meeting in December last year, but a circular has not been formally issued yet.
Companies can now approach the CRA with more supporting documents to stake a claim to a better rating. CRAs, on the other hand, say companies often do not provide full disclosures, leading to ratings based on inadequate information.
Rupee, bonds hit two-week highs
The Indian rupee and 10-year bond prices on Monday closed at two-week highs as falling crude oil prices ease inflation and trade deficit worries. The home currency ended at 67.43 against the US dollar—a level last seen on 11 May, up 0.51 percent from its previous close of 67.77. The currency opened at 67.50 a dollar and touched a high of 67.30 a dollar.
The 10-year bond yield closed at 7.738 percent, a level last seen on May 11, from its Friday’s close of 7.794 percent.
RBI sets rupee reference rate at 67.4430 against dollar
The Reserve Bank of India today fixed the reference rate of the rupee at 67.4430 against the US dollar and 79.0027 for the euro. The corresponding rates were 68.2600 and 79.8847, as on May 25.
According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 89.8880 and 61.57 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.
Traders body files CCI plea against Flipkart-Walmart deal
Traders body Confederation of All India Traders (CAIT) on Monday said it has approached the Competition Commission of India (CCI) against the Flipkart-Walmart deal, stating that it will create unfair competition and an uneven level playing field for domestic players.
CAIT said the Flipkart-Walmart deal would deny market access to non-preferred sellers and impact small traders on offline platform. The confederation has “filed its objection petition in CCI against the Walmart-Flipkart deal,” it said in a statement.
Southwest Monsoon hits Kerala, says Skymet
The Southwest Monsoon hit Kerala yesterday marking the arrival of the rainy season in the country, private weather forecasting agency Skymet said. However, the India Meteorological Department (IMD) in its 8.15-am bulletin, said Monsoon would hit Kerala in the next 24 hours. "There are Monsoon-like conditions over Kerala and we can say that the annual rainfall season has arrived," Skymet CEO Jatin Singh said.
Oil prices mixed but expected output increase drags
Oil prices were mixed in early Asian trading on Tuesday, but remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply.
Brent crude futures were up 57 cents, or 0.76 percent, at USD 75.87 a barrel after settling at their lowest since May 8 at USD 75.30.
US West Texas Intermediate crude was down 80 cents, or 1.18 percent, at USD 67.08 a barrel. It finished the last session at its lowest closing price since April 17 at USD 66.47 per barrel.
Japan jobless rate steady at 2.5 percent in April: govt
Japan’s jobless rate held steady in April and the availability of jobs also remained unchanged, government data showed on Tuesday.
The seasonally adjusted unemployment rate stood at 2.5 percent, the Internal Affairs ministry said. The result matched the median estimate of economists polled by Reuters.
The jobs-to-applicants ratio was 1.59 in April, unchanged from the previous month. The median forecast was for 1.60.
Tamil Nadu closes Vedanta copper smelter permanently after bloody protest
The Tamil Nadu government on Monday ordered the permanent closure of a copper smelter controlled by London-listed Vedanta Resources after 13 people protesting to demand its shutdown on environmental concerns were killed last week.
“We have taken a decision to permanently shut down the plant and today issued government orders to do the same,” Edappadi K Palaniswami, chief minister of Tamil Nadu said in a statement after meeting officials, including from the pollution department.
Gold falls on dollar gains, prospects for US-North Korea summit
Gold prices fell for a second session on Monday as the US dollar firmed and after US President Donald Trump revived hopes that he would meet North Korean leader Kim Jong Un next month, lowering political tensions and demand for gold as a safe-haven investment.
The dollar strengthened to a 2018 high, pressuring gold by making it more expensive for buyers holding other currencies.
Spot gold slipped 0.3 percent to USD 1,297.70 an ounce while US gold futures for June delivery were down 0.4 percent at USD 1,298.20.
2.25 lakh shell companies under scrutiny of corporate affairs ministry
A total of 2.25 lakh companies are under the scanner of the Ministry of Corporate Affairs for not making requisite filings for 2015-16 and 2016-17, and the ministry may crack down upon them to identify “shell companies”, The Times of India reported.
The government has been targeting companies who have not filed required returns under the Companies Act for over a year now. Directors of said companies are affected due to deregistration, who can be disqualified from holding board positions.
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 29, 2018 stocks such as Balrampur Chini, DHFL, IDBI, Jet Airways, Jain Irrigation, and Reliance Communications are present in this list.
With inputs from Reuters & other agencies
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