Wall Street's main indexes slipped on Tuesday, as bank stocks fell ahead of a handful of speeches by Federal Reserve officials, while escalating tensions in the Middle East and trade jitters added to the dour mood.
At least five Fed policy makers are speaking later in the day, including Chair Jerome Powell, and markets assume they will stick with the recent message that rates could be about to be cut for the first time since the financial crisis.
Today's price action/candle body has covered the entire trading range of the previous day which indicates that bulls are present between 11650 - 11750. Though they have not been able to breach 11850. Prices are stuck between 20 days MA which is placed at 11856 and 50 days MA which is providing support at 11796. The underlying signal still indicates a Buy for short to medium term. Also, Derivatives data, ahead of Monthly expiry, points out the range for the market to be 11700 - 12100
- Mustafa Nadeem, CEO, Epic Research
ETMarkets Evening Podcast: Can Dalal Street extend this rally?
In the last hour of the session, Nifty saw a breakout above the resistance end of a ‘Falling Channel’ on the hourly chart. We expect Nifty to continue this positive momentum and resume its higher degree uptrend. The immediate resistance is placed at 11,845, but we expect it to be broken soon, which could then lead Nifty up to 12,000 level soon
- Ruchir Jain, Angel Broking
If Nifty crosses and sustains above 11,820, it would see buying towards 11,860-11,890 levels in the extreme short term. Failing to hold above 11,730 level should cause it drift towards the 11,700-11,680 range
- Rajesh Palviya, Axis Securities
Despite negative global cues, rising market means that investors are preparing for the budget. Value buying is emerging at lower levels and this was visible in today’s session. Although the auto sector is howling, stock prices are still showing resilience. Market is expecting a likelihood of sops to be announced in the Budget. The tyre sector was a stark performer in the auto space. Buying was also witnessed in heavyweights such as Reliance Industries. RIL has found support near its 200-DMA, which is a good sign for Nifty since it is heavyweight in the index
- Umesh Mehta, Head of Research, Samco Securities
Nifty formed a Bullish Engulfing candle on the daily scale and is turning from multiple support zones, which showed early signs of a consolidation breakout with fresh bounce. Now it has to hold above 11,761 to extend its move towards 11,888 and then 11,929 levels, while on the downside, support exists at 11,720 and then 11,666 levels
Special Podcast: Will govt give up on RBI's 'excess' reserve? R Sriram breaks it down
Global uncertainty continues with US-Iran tensions escalating and trade tension between the US and China continuing. FIIs have been net sellers this month selling around Rs 1,400 crore. With the Union Budget scheduled on July 5, all eyes remain on what measures the government will take to boost growth. We continue to remain selective and prefer stocks where valuations remain reasonable. We prefer corporate banks such as ICICI Bank, Axis Bank and SBI
- Hemang Jani, Head - Advisory, Sharekhan
Market recovered after two days of consolidation as investors were looking for opportunities in quality heavyweights in segments like banks, cement & infrastructure, where long-term sentiment is positive. A positive momentum was triggered as monsoon intensified and PSU banks outperformed based on the statement from FM regarding faster recovery in bad loans & recapitalisation
- Vinod Nair, Head of Research, Geojit Financial Services
Amid volatility took nifty from day low of 11,651 to day’s high of 11,814 and closed a day at 11,796 with gains of 97 points and formed bullish candle on daily chart suggesting some more upside before expiry. Immediate support for nifty is coming near 11,730-11,680 zone and resistance is coming near 11,850 any decisive break above said level may push index towards 11,910-11,960 zone. Nifty bank has showed swift move from day low of 30,451 to day’s high of 30,913 zone and closed a day at 30,847 with gains of 245 points on Tuesday session. Nifty bank has given small bullish flag breakout suggesting current move may extend towards immediate resistance of 31000-31200 zone, support for Bank Nifty is coming near 30,600-30,400 zone".
- Rohit Singre, Senior Technical Analyst, LKP Securities
Market has been building up hopes from Budget for revival of economy (which has hit 5-year low GDP growth). Further, torrent of tweets from Trump on China, have kept markets guessing about his foreign policy and trade war stance in the upcoming G20 meet. Further, his tweets on Iran are crucial for oil price movement which remains critical for Indian macro stability. Gold has emerged as clear winner scaling to multi-year highs, amid a flurry of geopolitical events and likelihood of feeble global economy
- Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking
Going forward, we maintain our cautious stance on Indian market. The near-term movement is likely to be driven by progress on monsoon as well as global developments. The G20 summit, which is likely to be held on June 28-29 will be closely monitored, as it is likely to focus on efforts to settle the international crisis and give some indication on progress on US-China trade talks. Further, the crude oil price and currency movement will also be on market radar
- Jayant Manglik, President - Retail Distribution, Religare Broking
Private banks, RIL lift Sensex 312 pts, Nifty ends near 11,800; IFCI soars 19%, Torrent Power 13%
When you are allocating money on top-down perspective, the obvious choice would be to enter the large caps and in large caps the relatively safer ones. Having said that, the midcap as everybody keeps on talking about whether it is right time to get into midcaps or not, but at this point in time till the time we see a broader economic growth happening on a consistent basis we would refrain from going into that segment. We will stick probably to the larges and relatively safer havens because of which you might also see that the valuations remain elevated for again in the medium term perspective.
Chinese shares ended lower on Tuesday, snapping a six-day streak of gains, as investors locked in profits, while concerns that China and the United States would make little headway toward resolving their bitter trade war this week also hurt sentiment.
At the close, the Shanghai Composite index was down 0.87 per cent at 2,982.07, trimming earlier losses. It was the first daily decline after six straight sessions of gains, its longest rising streak since February 2018. The Shanghai Composite rose more than 4 per cent last week.
Shares of Dewan Housing Finance Corporation (DHFL) declined over 5 per cent in Tuesday's session and looked on course to break the winning streak of last three sessions, when it jumped 25 per cent.
If you see current market situation, it is fairly fragile and chaotic and we are seeing mix news flows coming from all side global as well as the local and that has confused the market. One side we have situations where there is lot of liquidity constraint. Everyday there are default kind of situation coming around, rating downgrades happening. On the other side, we have the data of tax collection going up. So it is a very-very confusing situation right now.
- Vikas Khemani, Founder, Carnelian Capital Advisors
Industry leaders hope Sitharaman will remove the LTCG tax completely, or cut the rate. Some others, however, speculate that the exemption limit could be hiked to Rs 2,00,000 from Rs 1,00,000 earlier.
Alembic Pharma gains 2% on USFDA nod to influenza drug
The stock gained 2 per cent after the company said it has received approval from the US health regulator for Oseltamivir Phosphate capsules, used for the treatment of influenza infection. The approved product is therapeutically equivalent to the reference listed drug (RLD), Tamiflu Capsules of Hoffman-La Roche, Inc.
Shyam Shekhar shares his piece of mind
When promoters get too slimey. Stock bets will only turn limey. We are the only ones to blame When we bet on men t… https://t.co/H69Rq16WSN
After eight consecutive sessions of losses, shares of Emami climbed nearly 4 per cent in morning trade on Tuesday, a day after promoters sold 10 per cent of their equity holdings in the company for Rs 1,230 crore to pare debt. The promoters in February had sold 10 per cent stake in Emami for Rs 1,600 crore to a group of investors which includes SBI Mutual Fund, PremjiInvest, Amundi, IDFC and L&T Mutual Fund amongst others.
Do not expect a large fiscal windfall: Nomura India on Jalan panel report
Nomura said that even if the Jalan committee determines the RBI holds excess capital, the transfer may take place in a phased manner (at least three years), rather than in one go. Moreover, with the government already assuming a large dividend from the RBI after having already received an interim dividend, expectations of a large fiscal windfall (nearlly Rs 3 lakh crore) are at risk of being disappointed, the brokerage said.
Piramal Enterprises drops 3% amid Shriram Capital stake sale plan
Shares of Piramal Enterprises declined over 3 per cent in morning trade on Tuesday after it said it is planning to sell its entire holding of around 20 per cent stake in Shriram Capital. Days after exiting Shriram Transport Finance, Piramal Enterprises now exploring selling entire stake in Shriram Capital.
OPENING BELL: Sensex sheds 150 pts, Nifty tests 11,650; Rel Power, RCom drop 5% each
Sensex gains 100 pts, Nifty50 flat; rupee trades at 69.30 against dollar.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 17.50 points, or 0.15 per cent, higher at 11,733.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms Spinning Top candle
Nifty50 on Monday failed to hold above the 11,700 mark by a whisker and ended at 11,699. The index has been trading in the 11,625-11,850 range for the past couple of sessions. Analysts feel a directional move is likely only if this range is breached decisively.
Market-wide rollovers at 31%
The market-wide rollovers till Monday stood at 31 per cent, which were higher compared with the average rollovers of 28 per cent seen in the last three series. Nifty futures rollover stood at 29 per cent, which were lower compared to the average three-month rollovers of 32 per cent.
Asian markets edge higher
Asian stocks were left adrift on Tuesday as expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar, while lifting gold to six-year peaks. Early trade was very light with MSCI's broadest index of Asia-Pacific shares outside Japan up a minor 0.09 per cent. Japan's Nikkei was all but flat, as was the South Korean market.
Oil prices steady on US-Iran tensions
Oil prices were steady, supported by worries over conflict between Iran and the United States but pressured by concerns about a potential decline in demand for crude. Benchmark Brent crude futures were up 3 cents at $64.89 a barrel.
US shares settled mixed
In overnight trade, the Dow Jones Industrial Average index rose 8.41 points, or 0.03 per cent, to 26,727.54, the S&P500 index lost 5.11 points, or 0.17 per cent, to 2,945.35 and the Nasdaq Composite index dropped 26.01 points, or 0.32 per cent, to 8,005.70.
Sebi to tighten disclosure norms for pledged shares
Sebi plans to widen the definition of encumbrance and increase disclosures required on encumbered shares by promoters. Sebi board, which is likely to meet on June 27, is expected to discuss the proposal on pledged shares, tweak differential voting rights so founders can retain control and also discuss rules on royalty payments by listed companies, they said.
DIIs buy Rs 984 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 207.33 crore worth of domestic stocks on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 984 crore, data suggests.
FPIs against more inspection powers for Sebi
A lobby group representing global banks and asset managers such as BlackRock, Amundi, BNY Mellon and Capital Group has written to the Securities and Exchange Board of India opposing an HR Khan committee recommendation that would give the capital markets regulator more inspection powers.
Consensus eludes Jalan panel on RBI surplus
Finance Secretary Subhash Chandra Garg, one of six panel members, has reportedly opposed and delayed proposals from a Reserve Bank of India (RBI) panel headed by Bimal Jalan that the central bank keep most of its so-called "excess reserves" rather than hand them to the central government. It was not immediately clear if the move could block the proposals or lead to changes in them. The panel's report, originally anticipated in April, has been delayed for a fourth time and now is expected after the budget on July 5.
Dollar falls with yields, gold soars
Expectations of more dovish talk from the Federal Reserve on Tuesday pushed down Treasury yields and the dollar, while lifting gold to six-year peaks. Yields on 10-year Treasuries have dived 120 basis points since November and, at 2.01%, are almost back to where they were before Trump was elected in late 2016. The dollar fell for four sessions on a row against a basket of other currencies to stand at a three-month low of 95.980. The pullback in the dollar combined with lower yields has put a fire under gold, which touched a six-year top overnight. The metal is up 12% since early May at $1,1426.39 an ounce.
Fresh 'hard hitting' sanctions on Iran
US President Donald Trump on Monday signed an executive order, which he said, will impose "hard-hitting" sanctions on Iran and deny the Iranian Supreme Leader and other officials access to financial instruments within US jurisdiction. Trump's move to impose a fresh set of sanctions on Iran's supreme leader Ayatollah Ali Khamenei and a string of military commanders comes days after Tehran said it shot down an American drone in the region on Thursday.
Inter-state office services to come under GST net
The government is set to make it clear that services provided by one office in one state to another centre in another state will face goods and services tax , reports ET. A circular to this effect, endorsed by the GST Council, will be issued soon. The circular backs the view taken by Karnataka Authority for Advance Rulings.
$216-490 billion black money stashed abroad
Unaccounted wealth outside the country held by Indians was estimated in the range of $216.48 billion to $490 billion over various periods between 1980 and 2010, according to three separate studies conducted by NIPFP, NCAER and NIFM. The studies conducted by the three institutes have found that the sectors where unaccounted income is found to be the highest included real estate, mining, pharmaceuticals, pan masala, gutkha, tobacco, bullion, commodity, film, and education, said a report of the standing committee on finance tabled in the Lok Sabha Monday.
Manufacturing outlook in Q1 worst in NDA years
Manufacturing outlook for the current quarter plummeted at its fastest pace in recent years, with those looking to raise production at its lowest level since UPA days, a Ficci survey shows. Around 41% of the respondents in the survey covering over 300 manufacturing units, with a combined annual turnover of over Rs 3.5 lakh crore, expect higher production during the June quarter — a 13 percentage point drop since the March-quarter.
Pompeo visit starts today
US Secretary of State Mike Pompeo will visit India from Tuesday for talks with government leaders over a growing list of trade and investment issues that has cast a shadow over ties between the two big democracies. Pompeo is expected to lay the ground for a meeting between US President Donald Trump and Indian Prime Minister Narendra Modi later in the week at a G20 meeting in Japan. US-India trade, e-commerce disputes are likely to top Pompeo's New Delhi agenda.
Sensex on Monday
Sensex ended down 71.53 points or 0.18% at 39,122.96. Its NSE counterpart Nifty lost 24.45 points or 0.21 per cent to 11,699.65.
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