The Nifty could see a subdued opening, largely tracking the trends on the SGX Nifty, but global markets’ move could keep the Street on its feet. Frontline indices witnessed a major correction on Friday, with the Nifty closing 157.50 points lower at 9,964.4.
The 50-share index, which started with a gap on the lower side, witnessed sustained selling pressure from bears which took the index below its crucial support level of 10,000 and formed a solid bearish candle on the charts on Friday.
The Nifty saw its biggest single-day fall in the last ten months and also gave the lowest daily close in last ten trading sessions.
A strong bearish candle after a Hammer-like formation suggests that markets are likely to remain under pressure for some more time. Short-term weakness is likely to continue towards 9,220 and 9,880 levels, suggest experts.
On the weekly scale, it formed a Bearish Engulfing pattern as it snapped the entire gains of last week and closed below previous week’s low levels. Investors are advised not to create long positions on dips while for short positions maintain a strict stop loss above 10,179.
In order to complete this corrective pattern, Nifty should go below 9685 levels where a good buying opportunity should arise. Mohammad advises traders to make use of pull back rallies to go short for an ideal target of 9685 with a stop above 10,179 levels.
Stay tuned with Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies:
Wall Street hits record high:
US stocks closed narrowly mixed Friday as health care stocks recovered most of their losses. The Dow closed out its second consecutive week of gains, up 0.4 percent on the week.
The Dow Jones industrial average moved off earlier lows, closing down 9.64 points to settle at 22,349.59, with Apple continuing to add to its weekly decline and UnitedHealth leading the decliners. Shares of the iPhone maker had their worst week since April 2016 on the heels of the release of several new products, which launched in stores Friday. The stock remains 31 percent higher for the year.
The S&P 500 closed 0.06 percent higher to finish at 2,502.22, with health care and energy moving higher. Telecommunications led gainers, with news of a potential merger between
Sprint and T-Mobile, giving analysts reason to believe the combined company reduces competition among major providers. Verizon shares gained more than 2 percent on the day.
Energy was the second best performing sector on the day.
The Nifty50 futures on the Singapore Stock Exchange were trading 5 points lower at 9,979, indicating a flat opening for the domestic market.
Asian markets climb higher
Major Asian indexes climbed in early Monday trade as investors digested elections in Germany and New Zealand over the weekend.
Japan’s Nikkei 225 rose 0.59 percent in early trade as automakers and most financials notched gains. Across the Korean Strait, the Kospi edged up 0.07 percent to break a four-day losing streak.
Capacit’e Infraprojects to list today
Construction company Capacit’e Infraprojects will make a debut on exchanges on September 25. The issue price is fixed at Rs 250 per share.
Given the overwhelming response to the issue, the grey market premium suggests the listing could be with a premium of more than Rs 125-130 per share, sources said.
The Rs 400-crore initial public offering of Capacit’e has oversubscribed 183.03 times.
Sebi revokes trading ban on 14 entities in LTCG case
Regulator Sebi has lifted trading ban on 14 entities which were alleged to have misused the stock market platform for money laundering and tax evasion as it did not find any “adverse evidence” against them.
The regulator’s order came in the case related to Kamalakshi Finance Corporation LtdBSE -4.53 % (KFCL) wherein various entities were prima-facie found to have artificially inflated the company’s share prices to make illegal gains.
So far this month, the watchdog has revoked trading restrictions imposed on more than 750 entities in different cases to related to making fictitious long term capital gains.
Moody’s downgrades UK’s rating on Brexit and growth fears
Ratings agency Moody’s downgraded Britain’s credit rating by a further notch on Friday, saying the government’s plans to fix the public finances had been knocked off course and Brexit would weigh on the economy.
A few hours after Prime Minister Theresa May set out plans for a new relationship with the European Union, Moody’s cut the rating to Aa2 from Aa1, underscoring the economic risks that leaving the bloc poses for the world’s fifth-biggest economy.
Britain has worked down its budget deficit from about 10 percent of economic output in 2010, shortly after the global financial crisis hammered the country, to 2.3 percent in the most recent financial year which ended in March.
But Moody’s said the outlook for public finances had weakened significantly as May’s government increasingly put into question the austerity push pursued by former prime minister David Cameron and his finance minister George Osborne.
North Korea says rockets to U.S. ‘inevitable’ after Trump dubs Kim ‘rocket man’
North Korea’s Foreign Minister Ri Yong Ho told the United Nations on Saturday that U.S. President Donald Trump had made “our rockets’ visit to the entire U.S. mainland inevitable” by calling North Korean leader Kim Jong Un “rocket man”.
“Through such a prolonged and arduous struggle, now we are finally only a few steps away from the final gate of completion of the state nuclear force,” Ri told the annual gathering of world leaders for the United Nations General Assembly.
“It is only a forlorn hope to consider any chance that the DPRK (North Korea) would be shaken an inch or change its stance due to the harsher sanctions by the hostile forces,” he said.
Rupee trims losses
After falling to an intraday low of 65.16 on Friday, the Indian rupee recouped most of its losses and closed at 64.80 per US dollar.
Dealers said that the early weakness was mainly due to large foreign fund outflows and a fall in the domestic equity market.
There was also increased demand for the dollar from both domestic banks and importers as the end of the month is nigh and they could not ascertain the likely extent of the fall in the rupee over the next few sessions.
But the RBI intervened during the day, making sure early losses were recouped.
FPIs pull out Rs 5,500 cr from equities in September
Foreign investors remained in exit mode as they have pulled out nearly Rs 5,500 crore from stock markets so far this month due to geopolitical concerns and a tendency to take profit.
The net outflow by foreign portfolio investors (FPIs) follows withdrawal of Rs 12,770 crore from equities in August. Prior to that, they had pumped in over Rs 62,000 crore in the past six months.
According to the latest depository data, the FPIs withdrew a net Rs 5,492 crore (USD 855 million) during September 1-22. However, they pumped in Rs 4,430 crore in debt markets during this period.
After taking into the account the latest outflow, the total investment by the FPIs in equity markets stood at Rs 40,253 crore (about USD 6 billion) this year.
Angela Merkel retains office
Chancellor Angela Merkel won a fourth term in office on Sunday but will have to build an uneasy coalition to form a German government after her conservatives haemorrhaged support in the face of a surge by the far-right.
The anti-immigration Alternative for Germany (AfD) stunned the establishment by winning 13.1 percent of the vote, projected results showed, a result that will bring a far-right party into parliament for the first time in more than half a century.
Merkel’s conservative bloc emerged as the largest parliamentary party but, with just 33.2 percent of the vote, saw its support slump to the lowest since 1949 – the first time national elections were held in post-war Germany.
US bombers fly off North Korea’s coast in show of force
North Korea said on Saturday targeting the U.S. mainland with its rockets was inevitable after “Mr. Evil President” Donald Trump called Pyongyang’s leader “rocket man”, further escalating rhetoric over the North’s nuclear weapons and missile programs.
North Korean Foreign Minister Ri Yong Ho’s remarks to the United Nations General Assembly came hours after U.S. Air Force B-1B Lancer bombers escorted by fighters flew in international airspace over waters east of North Korea, in a show of force the Pentagon said showed the range of military options available to Trump.
Major power announcement likely: Govt
Prime Minister Narendra Modi is likely to make a major announcement on power sector on September 25, according to MoS for Power RK Singh.
“There will be a major announcement relating to the power sector on September 25 by the Prime Minister. We are excited about it. It will be very important for the people,” Singh to CNBC-TV18’s Shereen Bhan.
In his first interview since taking charge of the Power Ministry, Singh promised to further open up the sector for private players but separating “content” and “carriage”. He also assured of legislative changes to ensure power purchase agreements (PPAs) are honoured.
Scope for further rate cut by RBI: FinMin official
As the government scrambles for measures to boost the slowing economy, a top finance ministry official on Sunday said there is scope for a RBI rate cut at the next policy review as retail inflation continues to be low.
The statement comes ahead of the Reserve Bank’s bi-monthly monetary policy decision to be announced on October 4.
“There is scope for monetary easing because of inflation projections,” the official said, adding that all the government analysis is made on the basis of inflation remaining under 4 percent in the medium term.
NSE clarifies trading hours has not been revised
The National Stock Exchange (NSE) on Friday clarified that it has not revised the trading hours, after it received alerts that a circular was doing the rounds saying the bourse has extended the timings for closing session.
“It may be noted that, the exchange has not issued any circular for revision of the market timings for closing session,” NSE said in a statement.
The stock exchange said it noticed that a forged circular is being circulated, using the name and logo of the exchange, bearing download ref no: NSE/CMTR/36012 and circular ref. no: 305/2017, dated September 21, 2017 stating that the market timings for closing session have been revised by the exchange.
The trading on the exchange takes place between 9 am and 3.30 pm with 15 minutes each of pre-open and post-closing sessions.
Eruch Kapadia could be new Tata Sons CFO: Report
Eruch N Kapadia will be the next chief financial officer (CFO) at Tata Sons, according to a report in The Economic Times.
Kapadia, a chartered accountant and a cost accountant, takes over from the recently superannuated chief operating officer (COO) F N Subedar, and will report to the Tata Group CFO Saurabh Agrawal.[“Source-moneycontrol”]