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

The Nifty which started with a small gap on the higher side in morning trade on Thursday failed to garnet momentum as bears took control of D-Street in the first 15-minutes of trade. The index witnessed strong selling pressure throughout the session which made a ‘Bearish Belt Hold’ kind of pattern on the daily candlestick 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.

In Thursday’s price action, Nifty50 opened at 10,775.60 and rose marginally to 10,777.25 which made a small or non-existent upper shadow. The bears took control of D-Street in morning trade and pushed the index below its crucial support placed at 5-double exponential moving average (DEMA) placed at 10,737, and 13-DEMA at 10,712.

The index bounced back from its 20-DEMA placed at 10,670 to close 58 points lower at 10,682.70. The positive takeaway is that it managed to close above its support placed at 10,680.

But, bears are slowly tightening their grip on D-Street. The Moving Average Convergence and Divergence, popularly known as MACD, gave a ‘sell’ signal on the daily charts for the first time since March 2018.

MACD is one of the most effective trend-following momentum indicators, which can be used to spot a change in the short-term trend of the market.

The outlook has become slightly bearish as the index registers a ‘sell’ signal on the MACD; however, a confirmation will come if the index consistently trades below 10,700 levels.

“In line with our projections, Nifty50 continued its slide before signing off the session with a Bearish Belt Hold kind of formation. Hence, it appears that to culminate the corrective structure it will continue its downward swing below 10601 and may test its 50-day moving average, whose value is placed around 10550 levels, before bottoming out,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, in the zone of 10,601 – 10,550 one can expect the correction to end and selectively look for stock specific opportunities. Meanwhile, daily MACD also generated a ‘sell’ signal confirming downward pressure on the markets,” he said.

Asian markets

Asian stocks edged up on Friday as investors kept a cautious watch on developments in U.S.-China trade negotiations, while the dollar was perched near a five-month peak against a basket of currencies thanks to the benchmark U.S. Treasury yield topping a seven-year high, Reuters reported.

Wall Street

Wall Street ended a choppy trading session lower on Thursday, as investors grappled with escalating trade tensions and rising oil prices. US 10-year Treasury yields closed at 3.1131 percent, maintaining their near seven-year high and pressuring rate-sensitive sectors as investors ponder whether bonds offer an attractive alternative to riskier equities.

The Dow Jones Industrial Average fell 54.95 points, or 0.22 percent, to 24,713.98, the S&P 500 lost 2.33 points, or 0.09 percent, to 2,720.13 and the Nasdaq Composite dropped 15.82 points, or 0.21 percent, to 7,382.47.

SGX Nifty

Trends on Nifty futures on the Singaporean exchange show that the Nifty could have a lower opening. SGX Nifty is currently trading around 10,670-levels.

Domestic air passenger volume surges 26% in April to 11.51 million

Domestic air passenger volume surged 26 per cent in April to 11.51 million over the year-ago period driven by the tourists season, which began from the previous month, according to DGCA data released. Indian carriers together flew 11.51 million passengers in April this year as against 91.34 million in the same month last year, thereby logging a 24.1 per cent growth, Directorate General of Civil Aviation (DGCA) data showed.

Indian economy projected to grow 7.6% in 2018-19: UN

India’s economy is projected to grow 7.6% in fiscal year 2018-19, remaining the fastest growing economy in the world, as robust private consumption and benefits from past reforms help the country’s GDP gain momentum but sustained recovery in private investment remains a crucial challenge, according to a UN report. The UN World Economic Situation and Prospects (WESP) as of mid-2018, launched at United Nations on Thursday, said GDP growth in India is expected to climb to 7.5 and 7.6% in fiscal years 2017-18 and 2018-19 respectively.

Govt okays Rs5,000 crore micro-irrigation fund

The government on Wednesday approved a dedicated Rs5,000 crore fund to bring more land area under micro-irrigation as part of its objective to boost agriculture production and farmers income. The fund has been set up under NABARD, which will provide this amount to states on concessional rate of interest to promote micro-irrigation, which currently has a coverage of only 10 million hectares as against the potential of 70 million hecs.

Oil rises to $80 a barrel in London for first time since 2014

Oil rose to $80 a barrel in London for the first time since 2014 as US crude inventories fell and traders braced for the impact of renewed sanctions on Opec member Iran. Crude has rallied this month on concern that President Donald Trump’s decision to quit an international accord with Iran and reimpose sanctions will strain global supplies just as markets are already tightening. The glut that had weighed on prices for the past three years has finally been eliminated, thanks to strong demand and output cuts by other producers in Opec, the International Energy Agency said on Wednesday.

Centre promises help to 11 PSBs under PCA net

Interim Finance Minister Piyush Goyal on Thursday expressed confidence that the 11 public sector banks (PSBs) currently under the RBI’s Prompt Corrective Action (PCA) framework will be able to overcome their “legacy issues” quickly, according to a report by the Hindu Business Line. “The Centre will, over the next few days, ensure that every possible support is given to strengthen the resolve of these banks to come out of the PCA framework as quickly as possible,” Goyal told reporters after a meeting with the heads of the 11 PSBs.

Sebi warns PNB for late disclosures regarding Nirav Modi scam

Taking serious note of delay in making disclosures, markets regulator Sebi has warned PNB to promptly comply with mandatory norms on fraudulent transactions related to Nirav Modi and Gitanjali Group of companies. “The…non-compliances are viewed seriously and PNB is hereby warned and advised to be cautious in future to ensure compliance with all applicable provisions of the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations,” Sebi said in a communication to the bank.

India’s April oil imports from Iran highest since Oct 2016 as US curbs loom

India’s oil imports from Iran surged to 640,000 barrels per day (bpd) in April, its highest level since October 2016, according to data from shipping and industry sources, as refiners raised purchases ahead of looming U.S. sanctions against Tehran. Overall, India imported 4.51 million bpd in April, 2.5 percent higher than a year ago, the data showed.

India’s Iranian imports rose by 49 percent from March and were 20 percent higher than a year ago, the data showed. The country is the Iran’s second-biggest buyer of crude after China. State refiners have raised their imports after Iran agreed to steep shipping discounts. Iranian imports to India, crude oil.