Traders’ Diary: Nifty has support at 10,930-10,850
Indian equity market witnessed a bounce on Wednesday on brisk buying in index heavyweights amid firm global cues.
!1 New UpdateClick here for latest updates
Nifty opened higher on the back of exceptional strength in global markets. Two-wheelers, metals and few NBFCs performed well. Advance decline ratio was at 1:1, implying neutral activity in the market. Formation of Nifty is suggesting that Friday should be a major day for the market and traders will have to be careful while trading
- Shrikant Chouhan, Head Technical Research, Kotak Securities
For last 27 sessions, Nifty appears to be moving in a well-defined down-sloping channel with multiple touch points and, thus, a close above 11,078 should hint at strength in the index. For this sideways phase to continue with a positive bias, Nifty50 should sustain above 10,900. A strong comeback by the index, without violating the preceding session’s low, is a sign that Tuesday’s big selloff was triggered by global factors
- Mazhar Mohammad, Chartviewindia.in
Indices rebounded from yesterday’s fall as US announced a delay in the implementation of tariffs on some Chinese goods. Today was the weekly expiry day since Indian markets are closed on August 15 on account of Independence Day. Nifty closed on a positive note above 11000 mark led by metal and banking stocks. Near term, Investor’s to closely track government role to support economic growth and any developments on surcharge on FPI. Also on the global front, political uncertainty related to Hong Kong , US-China trade war, volatile movements in currency and Crude Oil will also determine further trend . Amid uncertainty, investor should maintain stock specific approach and focus on stocks with good management and relatively strong balance sheet
The stream of investors seeking refuge in the safest parts of the market has triggered yet another recession warning, with yield curves inverting from the U.S. to the U.K.
The gap between two- and 10-year yields dropped below zero on both sides of the Atlantic after a wave of soft economic data globally. Weaker-than-forecast Chinese retail sales and industrial output set the mood for the markets, with data later in the day showing Germany’s economy contracted, adding to the gloom.
Nifty formed Bullish Harami candle pattern on the daily chart, which is considered a reversal candle by nature. Now, if the index manages to hold above 11,080, then we may move towards the 11,140-11,200 zone in the near term. Support for the index is at 10,930-10,850
- Rohit Singre, Senior Technical Analyst, LKP Securities
The overall structure remains rangebound with support at the 10,950 level, and it requires a decisive close above 11,111 level to extend the recent bounceback towards the 11,180 level. As of now, a hold above 10,950 level may take Nifty towards 11,111 and then 11,180 levels, while on the downside, support exists at 10,950 and then 10,880 levels
We expect the markets to remain volatile in the near term and maintain our cautious stance. Further, in the absence of any fresh domestic triggers as well as end of earnings season, investors will take cues from global developments. Market participants would keep a watch on movement of crude oil price and rupee/dollar. Besides positive progress on US-China trade talks would boost investors sentiments. Given the uncertainty, we advise investors and traders to maintain stock specific approach and avoid risky trades
CLOSING BELL: Sensex climbs 353 pts on US tariff delay; Nifty tops 11,000; Vedanta, Tata Steel jump 4% each
SBI proposes to list credit card business
State Bank of India (SBI) on Wednesday said it is planning to dilute stake in its card business through the initial public offer (IPO) route. The country's largest lender currently holds 74 per cent stake in SBI Cards & Payment Services Private Limited.
If you look at domestic equity or India equity story, then mid to long term, it is a great place to be in and one has to have a shopping list ready. But given the concerns, as of now, whether we talk about Hong Kong or Argentina or about the US-China trade war, the flip-flop continues. So, do a staggered purchase and keep your shopping list ready because these times whatever portfolio you build, if you already own some stocks and you have conviction, these are the times when you will find them much cheaper at 10%-20% discount
- Arun Thukral, MD & CEO, Axis Securities
Soft policies, hard landing! How to change policy without disrupting markets
We do not see any major build-up of inflation. Yet, the continued hardening of food and turnaround of core inflation suggest that the risk to inflation, though relatively modest, is more toward hardening than softening.
Generic drugmaker Dr.Reddy's Laboratories shares fell as much as 8 per cent to Rs 2,351.2, their lowest since February 15 in Wednesday's session.
The firm in a filing said its generic versions of multiple sclerosis drug Copaxone and female contraceptive device Nuvaring recieved complete response letter from US Food and Drug Administration.
A complete response letter from FDA signals that the agency will not approve an application, according to its website.
Copper softens on low demand
Copper prices Wednesday moved down by 0.24 per cent to Rs 449.25 per kg as speculators cut down their holdings amid a weak trend in base metals at the domestic market.
SRS, Saregama among top 10 NSE losers
Price as on 14 Aug, 2019 12:47 PM, Click on company names for their live prices.
L&T plans to raise up to Rs 1,400 cr via NCDs
Infrastructure major Larsen and Toubro (L&T) on Wednesday said it plans to raise up to Rs 1,400 crore through issuance of non-convertible debentures (NCDs) on private placement basis.The company, however, did not elaborate on the reasons for raising funds.
Kora Master Fund to invest in Edelweiss Securities/Edelweiss Group (global investement biz) via compulsory convertible preference shares
Maruti chairman on auto sector slowdown
India's bond rally fizzles on government spending fears
A rally in government bonds, spurred by a large and surprise reduction in policy rates last week, has been cut short by renewed fears of government profligacy. Since February, the Reserve Bank of India has cut the key policy rate by 110 basis points, which has pushed bond yields down significantly.
July WPI inflation at 1.08%
Top 10 NSE gainers
Price as on 14 Aug, 2019 11:44 AM, Click on company names for their live prices.
Risks in India's banking sector may rise as a result of the Reserve Bank of India’s recent steps encouraging banks to lend more to non-bank lenders and retail borrowers, Fitch Ratings said in a report.
While these initiatives are designed to help keep credit flowing to the real economy amid signs of a slowdown, the latest measures could push up banking-sector risk if they lead banks to accept higher credit risk than they previously had appetite for, the rating agency said.
Benign inflation continues to provide some more space for MPC: Kotak
Benign inflation continues to provide some more space for MPC. CPI inflation in July remained well below the RBI’s target of 4%. Even though core inflation surprised on the upside, it is unlikely to sustain this momentum on the back of weak growth impulses. In this context, MPC’s acknowledgment to consider growth as the highest priority strengthens our belief of another 25-50 bps cut through the rest of FY2020. Impact of skewed rainfall distribution and geopolitical developments remain key risks.
Moody's says Reliance stake sale to Aramco credit positive
Moody's Investors Service on Wednesday said Reliance Industries' announcement of sale of a 20 per cent stake in its oil to chemicals (O2C) business to Saudi Arabian Oil Company (Aramco) will reduce the company's net leverage and is credit positive.
Jindal Steel gains 4% on debt reduction plan
Shares of Jindal Steel and Power (JSPL) rallied over 4 per cent in early trade on Wednesday after reports that the company has sold off its major international venture Botswana coal mine to Maatla Energy for $150 million.
The report further added that proceeds of this divestment are likely to be used to cut debt of Jindal Steel and Power at the group level. At present, JSPL has a total outstanding debt of Rs 40,000 crore as of March 2019.
Shares of HDFC Life plunged 7 per cent in Wednesday’s trade on reports that a total of 6.4 crore shares changed hands on the counter at Rs 486 a piece in early trade, representing 3.2 per cent of the company’s total stake.
Volume on the counter jumped 326 times the average two-week volume on BSE. The scrip fell 7.46 per cent to hit a low of Rs 480.35 on the exchange.
YES Bank, HDFC Life, Cox & Kings among most active stocks on NSE
Price as on 14 Aug, 2019 09:25 AM, Click on company names for their live prices.
Sensex rallies 426 points, Nifty nears 11,100; rupee trades at 70.97 against dollar.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 13.50 points, or 0.12 per cent, higher at 10,934, indicating a positive start for Dalal Street.
Tech view: Short term outlook muted
Nifty50 resumed its downtrend on Tuesday, as traders turned cautious after the bulls failed to take out a key resistance at 11,170. The index formed a ‘Long Black Day’ on the daily chart, and the short-term outlook for the index turned negative.
Asian shares take signs of relief
Asian shares climbed on Wednesday after Washington delayed tariffs on some Chinese imports in much-needed relief for markets. The surge in US stocks lifted MSCI's broadest index of Asia-Pacific shares outside Japan by 0.4 per cent. Australian stocks gained 0.4 per cent, South Korea's KOSPI advanced 1.2 per cent and Japan's Nikkei rose 0.8 per cent.
US delays tariffs on China goods
US President Donald Trump backed off his September 1 deadline for 10 per cent tariffs on the remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods in the hopes of blunting their impact on US holiday sales.
US stocks settled higher
In overnight trade, the Dow Jones Industrial Average index rose 372.54 points, or 1.44 per cent, to 26,279.91. The S&P500 index was up 42.57 points, or 1.48 per cent, to 2,926.32. The Nasdaq Composite index increased 152.95 points, or 1.95 per cent, to 8,016.36.
Rising US inventories drag oil prices
Oil prices fell after industry data showed US crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods. Brent crude was down 35 cents, or 0.6 per cent, at $60.95 a barrel, after rising 4.7 per cent on Tuesday, the biggest percentage gain since December.
FPIs sell Rs 638 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 638.28 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 201.53 crore, data suggests.
Sensex on Tuesday
BSE Sensex rallied 254.55 points or 0.68 per cent higher at 37,581.91 while NSE Nifty ended at 11,109.65, up 77.20 points or 0.70 per cent.
Good Morning, dear reader! Here's something to kickstart your trading day