What changed for the market while you were sleeping? 10 things you should know

What changed for the market while you were sleeping? 10 things you should know

The Nifty50 is likely to open higher on Wednesday tracking positive handover from Wall Street. The Nifty50 closed 11 points higher at 9,765 on Tuesday.

The index failed to close above its crucial 50-DEMA for the second day in a row on Tuesday which does not auger well for the bulls. For the index to pick momentum, 9800-9850 becomes crucial level to watch out for.

The index formed a bearish candle as the closing price was less than the opening level and also an ‘Inside Bar’ which is a two candlestick pattern.

Traders are advised to close some short positions if any as last minute buying has given some confidence to the bulls. The index closed below its crucial 50-days exponential moving average (DEMA) for the second day in a row which is a negative sign if follow up selling continues.

Lack of follow through to the severe selloff witnessed in Monday’s trading session itself can be considered as slightly positive sign for the indices and sustain above 9,685 levels a bounce towards 9900 levels can be expected, suggest experts.

Option band signifies the trading band between 9700 to 9900 zones and a crossover of this band could only give the fresh direction as per the current database.

Asian markets are trading higher on the back of positive handover from Wall Street overnight. Nikkei gained 0.5 percent, while Kospi was trading flat.

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 rallies on optimism about tax reform

US stocks ended higher on Tuesday with each of the three major indexes posting their best one-day percentage gains in over a week, as lawmakers’ comments on tax reform and the debt ceiling boosted investor optimism, said a Reuters report.

US House Speaker Paul Ryan told CNN at a town hall on Monday that tax reform would be easier to pass than the failed healthcare overhaul because Republicans have built a consensus, said the report.

The Dow Jones Industrial Average rose 196.14 points, or 0.9 percent, to 21,899.89, the S&P 500 gained 24.14 points, or 0.99 percent, to 2,452.51 and the Nasdaq Composite .added 84.35 points, or 1.36 percent, to 6,297.48.

SGX Nifty

The Nifty50 futures on the Singapore Stock Exchange were trading 30 points higher at 9818 indicating a positive opening for the domestic market.

Bourses to give ‘do not exercise’ option in equity derivatives

Providing more leeway, leading exchanges BSE and NSE will provide trading members the option to not exercise certain options contracts in the equity derivatives segment.

The new facility, to be provided on index options and stock options contracts, will begin from August 31, 2017. Currently, all open long positions across ‘in-the-money’ options contracts are automatically exercised and cash settled after the end of trading session on expiry day.

Rupee gains 4 paise to close at near 2-week high of 64.10

The rupee strengthened by 4 paise to close at nearly two-week high of 64.10 against the US currency on dollar selling by exporters and corporates.

The currency market remained dull and little action was seen owing to low trading participation on a day that witnessed strike by public sector bank employee unions, dealers said.

Dollar advances as euro falters ahead of Jackson Hole meeting

The dollar rallied after falling for two straight days, benefiting from the euro’s decline following weaker-than-expected euro zone data as well as investors adjusting positions ahead of a global central bankers’ conference this week, said a Reuters report.

The US currency posted its largest daily percentage gain in more than two weeks against the euro, and its best one-day rise in one week versus the yen, it said.

In late trading, the dollar index rose 0.5 percent against six major currencies to 93.549. The euro, meanwhile, slid 0.5 percent to $1.1749, retracing most of its overnight gains when it posted its biggest single-day rise so far this month.

Oil prices fall two percent after end-of-week rally

Oil prices fell nearly 2 percent ahead of monthly contract expiration on Monday, pulling back from last week’s rally built on signs the global market is starting to rebalance from chronic oversupply, said a Reuters report.

Brent crude futures settled down 2 percent, or $1.06 at $51.66 a barrel, while U.S. West Texas Intermediate crude futures ended down $1.14 a barrel, or 2.4 percent, at $47.37 a barrel ahead of the September contract’s expiration on Tuesday.

NRN Murthy to address Infosys investors on Wednesday

Founder N.R. Narayana Murthy will interact with investors on Wednesday through a conference call to tell his version of the software major’s boardroom battles that led to the exit of its technocrat Vishal Sikka as CEO on last Friday.

Rekha Jhunjhunwala buys Fortis Healthcare shares worth Rs 60 crore

Ace investor Rakesh Jhunjhunwala’s wife Rekha today picked up 45 lakh shares of Fortis Healthcare for an estimated Rs 60 crore through an open market transaction.

The shares were purchased at an average price of Rs 134.65, valuing the transaction at Rs 60.59 crore, according to bulk deal data available with the National Stock Exchange (NSE).

Luxury Car Cess: Ordinance on cabinet agenda today

The Cabinet is likely to consider on Wednesday an ordinance to increase the cess on mid-size and large cars and sports utility vehicles to 25% from 15% under the goods and services tax (GST) regime, said an ET report.

The GST Council, which sets the rates under the new tax system, had on August 5 approved a proposal to change the GST compensation law to raise the ceiling of the cess that can be levied on motor vehicles.

The current levies – GST at 28% plus a maximum cess of 15% – have reduced the tax incidence on large vehicles that were taxed as much as 55% in the pre-GST regime.

Apex Frozen Foods IPO subscribed 40% on Day 1

The initial public offer (IPO) of Apex Frozen Foods, which is in the business of aquaculture products, was subscribed 40% on the first day of bidding on Tuesday.

The Apex Frozen Foods IPO, which aims to raise up to a Rs152 crore, received bids for 2,509,600 shares against the total issue size of 6,210,000 shares, data available with the NSE showed.