What changed for the market while you were sleeping? 10 things you should know
by onlysureshot.com |
The Nifty which opened with a gap up failed to hold onto the momentum and closed just above its crucial support level of 10,700 making a Bearish Belt Hold kind of pattern on the daily charts.
A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and small lower shadow.
Formation of a Bearish Belt Hold pattern after a bullish candle does not augur well for the bulls, but as long as Nifty holds above 10,680-10,700 levels, the momentum should continue.
The index opened at 10,783.85 and rose marginally to 10,784.65 which made an insignificant upper shadow on the charts before bears took over. The index declined below 10,700 in intraday trade to hit an intraday low of 10,689.80 before closing the day 21 points lower at 10,718.05.
“The Nifty registered a Bearish Belt Hold kind of formation as it was under pressure from the word go. It can be a healthy pause in the ongoing uptrend as momentum readings on the short to medium term charts are stretched on the upside as the market has not witnessed any correction in the last 5 weeks,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
India VIX moved up by 3.88 percent at 12.84. On the options front, maximum Put open interest (OI) is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10800 strikes. Fresh Put writing at 10500 and 10700 strikes while Call writing is seen at 11000 and 10800 strikes.
According to Pivot charts, the key support level is placed at 10,676.97, followed by 10,635.93. If the index starts moving upwards, key resistance levels to watch out are 10,771.87 and 10,825.73.
US stocks fell on Wednesday as potential US restrictions on Chinese telecom companies reinforced investor concerns about worsening trade relations between the United States and China.
The Dow Jones Industrial Average fell 174.07 points, or 0.72 percent, to 23,924.98, the S&P 500 lost 19.13 points, or 0.72 percent, to 2,635.67 and the Nasdaq Composite dropped 29.81 points, or 0.42 percent, to 7,100.90.
Asian shares were subdued on Thursday ahead of anxiously-awaited Sino-US trade talks, while the US dollar consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan was all but flat, while South Korean stocks eased 0.31 percent. Japan’s Nikkei was closed for a holiday, while E-Mini futures for the S&P 500 barely budged.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 48.5 points or 0.45 percent. Nifty futures were trading around 10,708-level on the Singaporean Exchange.
The Federal Reserve held interest rates steady on Wednesday and expressed confidence that a recent rise in inflation to near the U.S. central bank’s target would be sustained, leaving it on track to raise borrowing costs in June.
The Fed’s rate-setting committee also downplayed a recent slowdown in economic and job growth, saying activity had been expanding at a moderate rate and job gains, on average, had been strong in recent months.
Economic growth in India is expected to strengthen to 7.3 percent in financial year 2018-19 on the back of robust activity from construction, manufacturing, and services sectors, says a BMI Research report.
According to the firm, a Fitch group company, the negative shock from demonetisation and GST implementation has "largely subsided". "We expect India's economic growth to strengthen to 7.3 percent in financial year 2018-19 (April-March) from 6.6 percent in fiscal 2017-18 on the back of robust activity from the construction, manufacturing, and services sectors," the report said.
The Trump administration is considering issuing an executive order that would restrict some Chinese companies’ ability to sell telecommunications equipment in the United States, two industry officials said, an action likely aimed at Huawei Technologies and ZTE Corp.
The news, reported earlier by the Wall Street Journal, came as Washington despatched a team to Beijing headed by Treasury Secretary Steve Mnuchin to hold talks over an ever-worsening economic relationship with China. US lawmakers and the Trump administration have pressured US companies to not sell Huawei or ZTE products, saying they potentially could be used to spy on Americans.
Oil prices fell early on Thursday, pulled down by a rise in US crude inventories and record weekly US production, which is countering efforts by producer cartel OPEC to cut supplies and prop up prices.
US West Texas Intermediate crude futures were down 28 cents, or 0.4 percent, at USD 67.65 per barrel while Brent crude oil futures were at USD 73.04 per barrel, down 32 cents, or 0.4 percent, from their last close.
Sebi onn Wednesday put in place additional risk management measures, pertaining to margin collection requirement and computation of liquid net worth, for equity derivatives segment.
The decision has been taken after taking into account feedback from the clearing corporations and the recommendations of Sebi's risk management review committee, the regulator said in a circular.
As many as 42 companies are scheduled to report results for quarter ended March later today which include names like Adani Ports, Castrol India, Edelweiss Financial, Emami, Hexaware, L&T Finance, MRF, PNB Housing Finance, Venky’s and Shree Renuka Sugars among others.
GR Infraprojects Ltd has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise an estimated Rs1,800 crore through an initial public offering (IPO). The IPO comprises fresh issue of shares worth up to Rs500 crore besides an offer for sale of up to 11,225,343 equity shares by the existing shareholders, including promoters, according to the draft papers.