Traders’ Diary: Nifty’s range at 11,200 to 11,700 levels
Watch this space as we bring you LIVE updates of the day's proceedings from Dalal Street.
!1 New UpdateClick here for latest updates
An attempted pullback was short-lived as Nifty faced fresh selling near the 20-hour moving average. The sharp fall, over the past few sessions, was in line with the sharp expansion in the daily Bollinger Bands. The daily momentum indicator continues to favour the bears, whereas the weekly momentum indicator has given a fresh sell signal. All these observations suggest the index can test lower levels going forward
- Gaurav Ratnaparkhi, Sharekhan
In the near term, Nifty sustaining above 11,250 level would be crucial for the bulls to prevent further damage. Contrary to this, a breach of the 11,229 level on a closing basis shall further strengthen the bearish sentiment and eventually lead the index to test their 200-day moving average, whose value is placed around 11,020 level
- Mazhar Mohammad, Chartviewindia.in
Nifty formed a bearish candle on daily as well as weekly charts, which meant the bears are continuously putting pressure at higher levels. The index has been forming lower highs and lows from last five sessions and holding below its 50-DEMA, which indicates weakness. As long as it remains below 11,350, weakness could continue and take Nifty towards 11,188 and then 11,050 levels, while on the upside, a hurdle is seen at 11,333 and then 11,420 levels
IIP in March 2019 contracted 0.1% (February 2019: 0.1% and March 2018: 5.3%). Manufacturing sector contracted both in February and March 2019, on overall basis, it is first contraction after June 2017 (-0.3%). On sequential basis only electricity sector grew faster in March 2019 (2.2% as against 1.3% in February 2019). Declining growth of primary goods and deepening contraction of intermediate goods, and weakness in both investment and consumption activities suggests very fragile industrial activities in near-term
- Devendra Pant, Chief Economist, India Ratings and Research
The earnings season has not panned out well going by the numbers of Auto, Consumer and Pvt banks quarterly results. We have started to see signs of slowdown in the economy, going by management commentary of consumer companies. If the slowdown gains traction, then may be further earnings downgrades in more sectors. Investors are also wary of taking aggressive positions before the general elections results to be announced on May 23rd. Our advice would be to be selective on the basis quality of management and business. Also, investors should avoid investing in companies that have high share of promoter pledges as stocks of such companies have come under selling pressure in recent days.
Lingering trade tensions between the US and China combined with anxiety ahead of the crucial macroeconomic data -- IIP and CPI inflation -- weighed on market sentiment. We expect volatility to remain high next week. We suggest focusing on risk management aspects and preferring hedged trades
- Jayant Manglik, President - Retail Distribution, Religare Broking
CLOSING BELL: Sensex extends slide to 8th day, down 96 pts, Nifty ends at 11,279; IT stocks, RIL drag
Investors pull more than $20 bn from stocks: BofAML
Global equities have seen outflows of $20.5 billion in the past week as "trade deal trauma" pushed more money into bonds, Bank of America Merrill Lynch said on Friday, the latest sign of how growing global trade tensions are roiling financial markets.
U.S. President Donald Trump's tweets on Sunday night, threatening to raise tariffs on Chinese imports, upended the previously calm market and wiped roughly $2 trillion from global equities this week.
Public lender State Bank of India on Friday posted a profit of Rs 838.40 crore for March quarter against a loss of Rs 7,718.17 crore in the corresponding quarter last year. Analysts in an ET NOW poll had projected a profit of Rs 4,890 crore.
Asset quality of the lender improved with percentage of gross non-performing assets easing to 7.73 per cent in Q4FY19 over 8.71 per cent in Q3FY19. Net NPA also improved to 3.01 per cent from 3.95 per cent QoQ.
India Inc’s March quarter number so far have given investors no big reason to cheer about; in fact management commentaries have turned more cautious than before. At least one blue chip firm used the word ‘recession’ in management commentary.
This is especially true of the consumer-focused sectors. This has made analysts wonder if ‘optically higher’ numbers for banks (on a low base) offer the market the much-needed comfort on the earnings front in the coming quarters.
Inflation likely crept up to six-month high in April: Poll
India inflation likely crept up slightly to a six-month high in April, driven mainly by food prices, a Reuters poll found, although holding below the Reserve Bank of India's medium-term target of 4 per cent for the ninth straight month.
If true, that would support expectations for the central bank to keep policy on hold through to the end of next year after cutting interest rates twice in a row, in February and April, ahead of national elections.
The latest Reuters poll of over 40 economists, conducted May 3-9, showed India retail inflation likely rose to 2.97 per cent last month from 2.86 per cent in March. The data is due May 13.
Shares of Reliance Industries looked up on Friday after recording an 11 per cent decline in last four sessions. The stock traded just over 1 per cent higher at Rs 1,269 in early trade.
On Thursday, RIL’s subsidiary Reliance Brands on Thursday acquired British toy retailer Hamleys for 100 million pounds (around Rs 620 crore) from France’s Groupe Ludendo. Hamleys, a 259-year-old toy-maker, has struggled to generate profits in recent times. It reported a profit after tax of 2.44 million pounds in 2018 after suffering a loss of 11.24 million pounds in 2017.
PS Reddy takes charge as CEO & MD at MCX
Multi Commodity Exchange of India (MCX) Friday said P S Reddy has taken charge as the managing director and CEO of the company. "Reddy's appointment has been approved by Securities and Exchange Board of India (Sebi), for a period of five years with effect from May 10, 2019," MCX said in a BSE filing.
Top 5 NSE gainers
Price as on 10 May, 2019 11:46 AM, Click on company names for their live prices.
Asian Paints falls 3% post March qaurter numbers
Shares of Asian Paints declined over 3 per cent in morning trade on Friday after the company missed Street's estimates in its March quarter numbers.
"Asian Paints' numbers were significantly lower than our and consensus estimates in terms of both- volume and pricing growth," said Reliance Securities.
"We cut our FY20, FY21 earnings per share (EPS) forecast sharply by 16.5 per cent and 15.3 per cent, respectively to factor in the slowdown amid a higher fixed cost environment," MOSL said.
Sensex climbs 100 pts, Nifty flat; rupee trades at 70 level against dollar.
Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange were trading 8 points, or 0.07 per cent, lower at 11,3334, indicating a flat start for the Nifty50.
Tech view: Nifty forms bearish candle
A confluence of the support points is placed in the 11,250 – 11,200 zone, including 100-day exponential moving average of 11,228. Any movement towards the 11,350 level will face resistance, while the 11,250-230 range may offer support to the NSE barometer in the short term.
Asian shares inch up from 2-month lows
Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike.MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent while Japan's Nikkei rose 0.4 per cent.
S&P500 futures inch higher
E-mini futures for US S&P500 rose 0.4 per cent in early Asian trade. In Overnight trade, the Dow Jones Industrial Average index fell 139.65 points, or 0.54 per cent, to 25,827.68, the S&P500 index lost 8.76 points, or 0.30 per cent, to 2,870.66 and the Nasdaq Composite index dropped 32.73 points, or 0.41 per cent, to 7,910.59.
N Korea test fires 2 missiles
North Korea fired what appeared to be two short-range missiles on Thursday in its second such test in less than a week, and the United States said it had seized a North Korean cargo ship as tensions again mounted between the two countries.
Day 1 of trade talks ends
Top US and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China, Reuters reported.
Oil prices jump after Trump's comments
Oil prices held firm after Trump's comments on Xi's letter raised hopes for a deal for now. Brent rose 0.7 per cent to $70.86 a barrel while US West Texas Intermediate (WTI) crude gained 0.9 per cent to $62.24 per barrel.
DIIs buy Rs 678 crore worth of equities
Foreign portfolio investors (FPIs) sold Rs 655.36 crore worth of domestic stocks on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 677.91 crore, data suggested.
Sensex on Thursday
Intense selling pressure in heavyweights Reliance Industries and Kotak Mahindra Bank pulled down equity markets on Thursday amid global worries over upcoming US-China trade talks. The S&P BSE Sensex tumbled 230 points down to close at 37,559 while the Nifty 50 dived 138 points 58 to 11,302.
Good Morning, dear reader! Here's something to kickstart your trading day