Business News›Traders' Diary: Nifty faces resistance at 10,820 level
Economic Times | 08 Jul, 2020 | 11.21AM IST
Traders' Diary: Nifty faces resistance at 10,820 level
Infosys and financials lead the market rally as half of 30-pack Sensex stocks end in the green.
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YES Bank approves raising funds via FPO
Private lender YES Bank said its capital raising committee (CRC) of the Board of Directors has approved raising funds by way of a further public offering (FPO). In an exchange filing late on Tuesday, the bank said the meeting of the CRC of the bank is scheduled to be held on or after July 10, to consider and approve the price band and discount, if any.
Tuesday was a day of consolidation for domestic equities, as Nifty oscillated in a very narrow and defined range to end the day with modest gains. The market opened positive, but soon pared those opening gains to trade flat. After heading nowhere, Nifty saw some selling pressure, which took it below the 10,700 mark briefly. Nifty recovered again, but only to trade in a sideways trajectory. In the end, while taking no directional cue, the headline index ended with a modest gain of 36 points, or 0.33 per cent.
Investor caution over renewed coronavirus lockdowns snuffed out a five-day rally in most world equity markets on Tuesday and weighed on oil prices, though it was not enough to halt a hot streak in Chinese stocks. The dollar edged higher as risk currencies such as the Australian dollar took a breather from recent gains and gold dipped as investors booked profits after bullion rallied to a near eight-year peak, trading around $1,780 an ounce.
Sebi looking at allowing futures trade in petrol, diesel: Official
Markets regulator Sebi is looking at permitting futures trading in petrol and diesel, an official said emphasising that there has been no disruption in commodities derivatives trading during the COVID-19 crisis. The Securities and Exchange Board of India (Sebi) is also looking at re-allowing futures trade in tur and urad, which were banned in 2007 after a spike in prices of these commodities.
As Nifty ended with gains for the fifth session in a row on Tuesday, it formed a Pin Bar or Hanging Man candle pattern on the daily chart. Chandan Taparia of Motilal Oswal Financial Services said the major market trend remains positive, as declines are being bought into on many of the heavyweight counters.
Emami on track to reduce promoter pledge to zero by next March: Director
Emami promoters said they are on track to reduce their pledge in the FMCG company to zero by March next year, said director Mohan Goenka. The promoters expect the money from the sale of the group’s cement business, Emami Cement, to Nirma Group’s Nuvoco will reach by July 15 which Goenka said would reduce promoter pledge currently from 90% to about 45%.
Here’s who bought and sold what in some of the key bulk deals of the day. YES Bank sold 43,00,000 shares of CG Power & Industrial Solutions at Rs 10.75 per share. At the end of March quarter, the bank held 12.79 per cent stake in the company. Jupiter India Fund bought 2,67,137 shares of KDDL at Rs 152.50 per share, while Partnr Reinsur Euro Se Alchemy Cap sold 3,08,559 shares of the company at the same price. At the end of March quarter, Jupiter India Fund held 2.99 per cent stake in the company.
Dow Jones opens lower after five-day rally as virus cases surge
US stocks slipped at the open on Tuesday following the S&P 500 and the Nasdaq's five-day rally, as investors weighed the risks to the economy from tens of thousands of new coronavirus cases nationwide. The Dow Jones Industrial Average fell 115.02 points, or 0.44 per cent, at the open to 26,172.01.
FMCG index snaps 6-day winning streak
The FMCG index snapped a six-day winning run as the constituent stocks saw profit taking. The index fell 0.42 per cent dragged by up to 3 per cent loss in ITC, UBL, Godrej Consumer, VBL and HUL.
Risk currencies breathe after rally, virus resurgence buoys dollar
Risk currencies such as the Australian dollar took a breather from recent gains on Tuesday, with investors hitting pause on an China-led equity market rally, as new coronavirus flare-ups and local lockdowns in some countries lifted the safe-haven dollar. Riskier currencies such as the commodity-driven Aussie, Norwegian crown, the New Zealand dollar and the Swedish crown have rallied strongly since April alongside increased risk appetite in global markets.
Stocks that gave ‘buy’ signals
About 90 stocks gave ‘buy’ signals on BSE as they crossed above the signal line on the MACD indicator. They included Tata Motors, NBCC, MTNL, Rain Industries, Mangalore Chemicals, Tin Plate Company, City Union Bank, HCL Tech and Gujarat Pipapav, among others.
VIX down for fifth day
India VIX, the measure of fear in the market, slipped further for the fifth straight session. The index closed 0.07 per cent lower at 25.17. This means traders on Dalal Street see relatively less volatility in the market going ahead.
Where is Nifty headed?
After opening in the red, Nifty made an intraday low of 10,657 but bounced back later in the day aided by private banks and financial stocks. “Over the past several days, Nifty has been trading above its 50-day moving average with an upward rising channel formation which suggested further upside movement. Based on the above technical structure, we expect Nifty to face resistance in the 10,850-10,900 range, while downside support will come in at 10,570,” said Sumeet Bagadia, Executive Director at Choice Broking.
Sebi extends compliance deadline for municipal bonds
Markets regulator Sebi on Tuesday further extended the deadline for issuers of municipal debt securities to comply with certain regulatory norms to July 31 in view of the COVID-19 crisis. The relaxation pertains to submission of investor grievance report, financial results and accounts maintained by issuers under ILDM Regulation, Sebi noted in a circular.
Nifty on Tuesday missed the 10,800 mark by a whisker. It was another day of range-bound trade and for yet another day, the index formed an indecisive candle on the daily chart, suggesting that it was in a consolidation mode. Analysts said a breach of the 10,820 level may offer strength to the index.
Daily price action forms small bearish candle: Rajesh Palviya
"Nifty opened on a positive note and remained extremely volatile throughout the session. Daily price action has formed a small bearish candle carrying a lower shadow, indicating buying support at lower levels. On the higher side, 10820 remains an important level to watch for, any sustainable move above this will signal strength towards 10900-10950 levels. On the downside, 10720-10700 will act as a support zone. The daily strength indicator RSI is placed in a positive terrain indicating strength ahead," said Rajesh Palviya, Axis Securities.
This is how the market moved in today's trade. It touched a high of 36,723.27 and a low of 36,271.09 to finally settle at 36,674.52
CLOSING BELL: Sensex rises for 5th day, gains 187 points; Nifty ends just shy of 10,800; Bajaj Finance jumps 7%, IndusInd 6%
Infosys and financials lead the market rally
15 of 30 Sensex stocks end the day in the green
Index contributors: Infosys, ICICI Bank, Bajaj Fin, Axis Bank, HDFC
Top Index gainers: Bajaj Finance (7.69%), IndusInd Bank (5.80%), Bajaj Finserv (4.37%)
Top Index losers: Power Grid (3.03%), ITC (2.60%), NTPC (2.52%)
S&P BSE Information Technology biggest sectoral gainer, up 2.10%
S&P BSE OIL & GAS biggest sectoral loser, down 2.42%
Volume toppers: Bajaj Fin, IndusInd Bank, RIL, Axis Bank, ICICI Bank
The auto industry will take many years to go back to FY19 levels, says Bosch in its investors' conference
Sensex jumps 200 points, trades at day's high
S&P BSE MidCap up 0.5%. This is how the index has moved in the last 3 months
Here are the top gainers and losers in the auto sector
Price as on 07 Jul, 2020 02:31 PM, Click on company names for their live prices.
Here are the top gainers in the tourism and hospitality sector
Price as on 07 Jul, 2020 02:05 PM, Click on company names for their live prices.
Bajaj Auto sends notice to Waluj Plant employees, to cut 50% wages if lockdown imposed; stock falls 2%
Tata Power seeks shareholders' nod to raise Rs 2,600 cr from Tata Sons
Tata Power will seek shareholders' approval for a proposal to raise Rs 2,600 crore via issuance of preferential shares to its promoter Tata Sons in an annual general meeting (AGM) later this month. The company has listed a special resolution for issuance of shares to Tata Sons on a preferential basis in the 101st AGM scheduled for July 30, stated a regulatory filing.
Alembic, Auro Pharma top gainers in the pharma pack
Price as on 07 Jul, 2020 01:44 PM, Click on company names for their live prices.
EU says recovery will be uneven across member states
EU sees 'severe' risks to the economic outlook
EU says Euro-area economy probably shrank by 13.5% in Q2
EU sees Spain, France, Italy shrink 10% in 2020
What do you think is the best thing to do in a market that is rallying undeterred by economic pain?
Here are the top gainers in the IT pack
Court grants relief to HUL over 'Glow & Handsome' trademark
An Indian court has directed consumer goods maker Emami Ltd to give bigger rival Hindustan Unilever Ltd seven days notice before initiating legal proceedings over the ‘Glow & Handsome’ trademark, according to a July 6 order. The Indian arm of global consumer giant Unilever said on July 2 it would rebrand its skin-lightening cream ‘Fair & Lovely’ to ‘Glow & Lovely’. Source: Reuters
Forex Center: This is how the major currencies are trading against each other
These are the top 5 losers in the FMCG space
Price as on 07 Jul, 2020 12:50 PM, Click on company names for their live prices.
Tata Power subsidiary completes sale of 3 ships for $212.76 million
Price as on 07 Jul, 2020 12:22 PM, Click on company names for their live prices.
BSE Utilities worst sectoral performer, falls 2.22%; only 5 constituents in the green
Caplin Point Labs' subsidiary inks distribution pact with Xellia Pharma for 5 injectables in US
Drug firm Caplin Point Laboratories on Tuesday said its subsidiary has entered into a distribution agreement with Xellia Pharmaceuticals for five injectable products in the US. The first product is expected to be launched shortly, while approvals for the remaining are expected in the next 12-18 months, Caplin Point Laboratories said in a BSE filing. Shares of Caplin Point Laboratories were trading 0.97 per cent higher at Rs 343.95 apiece on BSE. Source: PTI
Top Sensex drags in morning session
Sensex gives up gains, falls 85 points
Fed's Bostic says US recovery may be 'levelling off': FT interview
Atlanta Federal Reserve Bank President Raphael Bostic said the U.S. economic recovery is in danger of stalling due to the recent spike in coronavirus cases across many American states. High-frequency data had shown a “levelling off” of economic activity both in terms of business openings and mobility, he told the Financial Times newspaper in an interview published on Tuesday.
Eicher Motors, Escorts among top gainers in the auto pack
Price as on 07 Jul, 2020 10:47 AM, Click on company names for their live prices.
For the day, we expect the USDINR (Spot) could quote in the range of 74.40 and 75.05
Shares of Suzlon Energy hit 5 per cent lower circuit limit in Tuesday's session after the company posted a net loss of Rs 824 crore for the quarter ended March 31. It had posted a net loss of Rs 293 crore in the corresponding quarter last year. The scrip declined 5 per cent to Rs 5.33 in early trade, while the benchmark BSE Sensex was up 0.47 per cent at 36,660. The net revenue of the company declined around 55 per cent YoY to Rs 643 crore in Q4FY20 primarily due to low volume.
Pompeo says US looking at banning Chinese social media apps, including TikTok
Secretary of State Mike Pompeo said late on Monday that the United States is “certainly looking at” banning Chinese social media apps, including TikTok. “I don’t want to get out in front of the President (Donald Trump), but it’s something we’re looking at,” Pompeo said in an interview with Fox News.
Sensex highly volatile in morning session
Nifty gives up opening gains, slips into the red
BHEL, Vodafone Idea, Tata Motors among most active stocks on NSE
Price as on 07 Jul, 2020 09:24 AM, Click on company names for their live prices.
OPENING BELL: Sensex edges 50 points higher, Nifty stays above 10,750; IDBI Bank, Suzlon drop 5% each
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 38.5 points, or 0.36 per cent lower at 10,727.50 in signs that Dalal Street was headed for a negative start on Tuesday.
Oil prices inch higher on output cut support
Oil prices cautiously rose in early trade on Tuesday with major producers sticking to supply cuts, but gains were capped as U.S. coronavirus cases surged, potentially hampering a recovery in fuel demand. Brent crude futures rose 7 cents, or 0.2%, to $43.17, adding to a 0.7% gain on Monday.
Hong Kong, China stocks rise in early trade
Hong Kong stocks started with more gains Tuesday, having climbed more than six percent over the previous four sessions and following a surge on Wall Street. The Hang Seng Index rose 0.88 percent, or 231.92 points, to 26,571.08. The benchmark Shanghai Composite Index jumped 1.44 percent, or 48.07 points, to 3,380.95 while the Shenzhen Composite Index on China's second exchange climbed 0.98 percent, or 20.74 points, to 2,142.33.
Japan stocks open lower
Japan stocks opened lower on Tuesday after three straight days in positive territory as investors cashed in on recent gains, with a lack of fresh buying incentives. The key Nikkei 225 index fell 73.22 points, or 0.32 percent, to 22,641.22 in early trade while the broader Topix index was down 4.90 points or 0.31 percent at 1,572.25.
US Services PMI jumps to pre-Covid 19 level
The Institute for Supply Management's (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, a report showed.
Wall St jumps on strong services sector data
US stocks rose sharply on Monday as a rebound in U.S. services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States. The Dow Jones Industrial Average rose 459.67 points, or 1.78%, to 26,287.03, the S&P 500 gained 49.71 points, or 1.59%, to 3,179.72 and the Nasdaq Composite added 226.02 points, or 2.21%, to 10,433.65.
Rupee slips 2 paise to 74.68 against dollar
The rupee pared initial gains to settle down by 2 paise at 74.68 against the US dollar on Monday due to firming crude oil prices and dollar buying by importers.
FPIs buy Rs 348 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 348.35 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 263.47 crore, data suggests.
Tech view: Nifty forms indecisive candle
Monday's was the fifth consecutive session when the index formed higher high and low, suggesting that supports have shifted higher. That said, Monday was the third straight session when the index formed an indecisive candle. Analysts said Nifty needs to hold above 10,700 level, if it were to drift towards the 11,000 mark. The immediate hurdle is placed at the 200-day SMA at 10,888, they said.
Sensex, Nifty on Monday
Indian stock market surged on Monday, with the BSE sensex gaining 465 points, tracking a positive trend in the Asian markets. On Monday, Nifty50 on the NSE closed at 10,763.65, higher by 156.30 points or 1.47 per cent from its previous close of 10,607.35 points.Sensex closed at 36,487.28, higher by 465.86 points or 1.29 per cent from the previous close of 36,021.42.
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