The Nifty failed to close above its crucial 200-days exponential moving average placed around 10,163 on Tuesday. The index formed a bullish candle on the daily close above 10,100 but below its 200-DEMA placed around 10,163.
After falling for five consecutive sessions, the Indian market witnessed some bit of value buying along with short coverings at lower levels. However, the way Nifty corrected from its intraday high, shows the pain may not be over for markets but a pullback rally might be on the cards.
For bulls to remain in control, Nifty has to cross 10,141 levels and then 10,163 which is the crucial 200-DEMA in the next few trading sessions. If the index manages to hold above these levels then a rally could stretch towards 10,276 levels.
The Nifty50 opened at 10,051 and rose to an intraday high of 10,155. It slipped to an intraday low of 10,049 before closing the day 30 points higher at 10,124.
India VIX fell down by 1.34 percent at 15.60. A pause in the upswing of volatility has given some stability to market but VIX has to decline below 13.50 to see the change in market trend, suggest experts.
The Nifty closed at 10124.3 on Tuesday. According to Pivot charts, the key support level is placed at 10,063.7, followed by 10,003.1. If the index starts moving upwards, key resistance levels to watch out are 10,170.3 and 10,216.3.
The Nifty Bank index closed at 24,168.2 on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,048.83, followed by 23,929.47. On the upside, key resistance levels are placed at 24,321.63, followed by 24,475.06.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
US markets end higher
US stocks advanced modestly on Tuesday as higher oil prices lifted the energy sector, but another slump in Facebook Inc shares curbed gains. Those gains helped the S&P energy index rise 0.84 percent, making it easily the best performing of the 11 major S&P 500 sectors, Reuters reported.
The Dow Jones Industrial Average rose 116.36 points, or 0.47 percent, to 24,727.27, the S&P 500 gained 4.02 points, or 0.15 percent, to 2,716.94 and the Nasdaq Composite added 20.06 points, or 0.27 percent, to 7,364.30.
Asian stocks advances
Asian markets gained early in the session on Wednesday, with markets focused on the Federal Reserve after it kicked off its March meeting. The Kospi traded higher by 0.17 percent while the junior Kosdaq edged up by 0.4 percent, CNBC reported.
Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a rise of 4 points or 0.04 percent. Nifty futures were trading around 10,162-level on the Singaporean Exchange.
Goldman Sachs downgrades India’s economic growth forecasts
Goldman Sachs downgraded its forecasts for India’s economy on Tuesday in the wake of a more than USD 2 billion fraud at Punjab National Bank, warning it could spark tighter regulation of the banking sector that would constrain credit growth.
In a note to clients, Goldman Sachs lowered its real gross domestic product (GDP) forecast on India for the year to March 2019 to 7.6 percent from 8 percent earlier. It said that it feared a regulatory crackdown after the huge PNB fraud, and the mountain of soured debt, could increase Indian banks’ provisioning burden and so slow credit growth.
US Fed meeting: Rate hike likely for the first time in 2018
The Fed is scheduled to make its monetary announcement with new Chair Jerome Powell set to give his first news conference. Market expectations for a March rate hike are 94.4 percent as of Tuesday afternoon, according to the CME Group’s FedWatch tool, CNBC reported.
While most market participants expect the Fed to raise rates by 25 basis points, they will also look for clues about whether the central bank will stay on track to hike three times this year or if it expects to further tighten policy.
Next wave of dud loans to originate from SMEs: Uday Kotak
Uday Kotak on Tuesday warned that there is more pain lurking with the lenders from small businesses and called upon his peers to look more closely at this underbelly of the credit market.
The share of PSU banks will come down by 30 percent in the next five years and banks will have to improve their underwriting standards to stay relevant, adding that in the next 5 years, the 70:30 ratio will move towards 50:50,” Kotak added.
Rupee slips 3 paise to 4-month low of 65.20 against dollar
The rupee slipped by 3 paise to finish at a four-month low of 65.20 against the US currency on Tuesday on some dollar buying by importers and banks ahead of the US Federal Reserve’s key policy meet.
The home currency opened at 65.2150 and touched a low of 65.2450, before ending at 65.20, down 0.05 percent from Monday’s close of 65.17.
Hindustan Aeronautics IPO subscribed 99% on final day
The initial public offer of state-owned Hindustan Aeronautics was subscribed 99 per cent on the final day of the bidding on Tuesday. The issue, through which the Bengaluru-based firm aims to raise Rs 4,229 crore, received bids for 3,37,37,556 shares against the total issue size of 3,41,07,525 shares, data available with the NSE till 1945 hrs showed.
The IPO is in a price band of Rs 1,215-1,240. SBI Capital Markets and Axis Capital are managing the issue.
Sandhar Technologies IPO subscribed 40% on Day 2
The initial public offer of auto component maker Sandhar Technologies was subscribed 40 per cent on the second day of bidding on Tuesday. The IPO to raise Rs 512 crore received bids for 43,80,165 shares against the total issue size of 1,08,72,661 shares, data available with the NSE showed.
The issue, which would close today, is in a price band of Rs 327-332. ICICI Securities and Axis Capital are managing the issue.
Mishra Dhatu Nigam’s IPO opens today
Mishra Dhatu Nigam Ltd.’s initial public offering is the third by a state-run company this month, the government will sell 4.87 crore shares, or 26 percent stake, in the speciality steelmaker at Rs 87-90 apiece to raise up to Rs 438 crore, Economic Times reported.
The issue of the manufacturer of special steels, super alloys and only manufacturer of titanium alloys in the country opens for subscription on March 21 and closes on March 23. SBI Capital Markets and IDBI Capital Markets are bankers to the issue.
Oil rises to 3-week high
Oil prices climbed to their highest level in three weeks on Tuesday as tension in the Middle East and the possibility of further falls in Venezuelan output helped offset the impact of growing US crude production, Reuters reported.
Brent crude futures for May delivery rose USD 1.37 to USD 67.42 a barrel, a 2.07 percent gain. The global benchmark rose to USD 67.88 during the session, its highest level since late February.
8 stocks under ban period on NSE
Security in ban period for the next day’s trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as DHFL, HDIL, IDBI, IFCI, Jindal Steel, JP Associates, Reliance Communications, and SAIL.[“Source-moneycontrol”]