The market snapped the five-day winning streak and closed lower on Tuesday, dented by profit booking as well as correction in global peers. Select banking and financials, auto and metals stocks pulled the market down.
The 30-share BSE Sensex was down 134.32 points at 36,444.64 while the Nifty50 fell 39.10 points to 10,922.80 and formed ‘Hanging Man’ kind of pattern on the daily candlestick chart (after rising more than 200 points in the previous five consecutive sessions).
“The short term trend of Nifty continues to be choppy. Unless we see an evidence of strength in the upside momentum of Nifty/broader indices, we are unlikely to see any upside breakout in the market,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities told Moneycontrol.
According to Pivot charts, the key support level is placed at 10,874.73, followed by 10,826.67. If the index starts moving upward, key resistance levels to watch out are 10,960.33 and then 10,997.87.
The Nifty Bank index closed at 27,482.2, down 51.35 points on January 22. The important Pivot level, which will act as crucial support for the index, is placed at 27,400.64, followed by 27,319.07. On the upside, key resistance levels are placed at 27,548.54, followed by 27,614.87.
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.
Wall Street drops as economic outlook, corporate forecasts sour
US stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment. All three major US stock indexes pared losses after White House economic advisor Larry Kudlow denied a report by the Financial Times that the Trump administration cancelled preparatory trade talks with China.
The Dow Jones Industrial Average fell 301.87 points, or 1.22 percent, to 24,404.48. The S&P 500 lost 37.81 points, or 1.42 percent, to 2,632.9 and the
Nasdaq Composite dropped 136.87 points, or 1.91 percent, to 7,020.36.
Asian shares dip, worries over growth and trade sour mood
Asian stocks edged down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-US trade dispute. Japan’s Nikkei dropped 0.7 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent.
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 3 points or 0.03 percent. Nifty futures were trading around 10,929 level on the Singaporean Exchange.
Oil prices extend falls as economic slowdown worries weigh on markets
Oil prices extended falls from the previous session on Wednesday, as concerns of an economic slowdown weighed on markets. US West Texas Intermediate (WTI) crude futures were at $52.74 per barrel at 0024 GMT, down 27 cents, or 0.5 percent from their last settlement.
The decline followed a 2 percent fall in crude oil futures and a slump in global financial markets on Tuesday as concerns over global growth spooked investors into looking for safe-haven assets like government bonds or gold.
Rupee tumbles 16 paise to 71.44 per dollar
The rupee skidded by 16 paise on Tuesday — its third straight session of loss — to close at 71.44 against the US dollar amid strengthening of the greenback and heavy selling in domestic equities.
Concerns over slowing global growth and foreign capital outflows weighed on the local unit, forex traders said. At the Interbank Foreign Exchange (forex) market, the rupee opened higher at 71.22 but came under selling pressure. It finally finished at 71.44 per dollar, down by 16 paise against its previous close.
UN forecasts global economic growth around 3% in 2019
The global economy will grow around 3 percent annually in 2019 and 2020, but waning support for multilateralism, escalating trade disputes, increasing debt and rising climate risks are clouding prospects, the United Nations said on January 21.
The UN’s report, the World Economic Situation and Prospects 2019, said signs suggest that the economic growth spurt “has peaked,” forecasting that global growth will remain steady at just below the 3.1 percent expansion of 2018.
But the report also stressed that economic growth is uneven and often doesn’t reach poorer nations. Per capita income is expected to stagnate or see only marginal growth this year in parts of Africa, western Asia, Latin America and the Caribbean, it said.
RBI announces Rs 10,000-cr OMO
Continuing with its commitment to provide adequate liquidity, the Reserve Bank on Tuesday announced a Rs 10,000-crore bond buyback on Thursday. The central bank had earlier committed to purchase government securities under its open market operations for an aggregate Rs 50,000 crore in January and has so far done Rs 30,000 crore.
The latest OMO to be conducted Thursday has been decided “based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward,” the Reserve Bank said.
The RBI will buyback five securities maturing between June 2019 and December 2033 through the purchase, it said and also specified details of each security.
China slaps anti-dumping duties on chemical from India, Japan
China has imposed anti-dumping duties on ortho dichlorobenzene (ODCB) imported from India and Japan which will come into effect from on Wednesday. The domestic industry has been subject to substantial damages due to the dumping of these products, the Chinese Commerce ministry said on Tuesday in a final ruling after anti-dumping investigations into the imports.
Significantly, the anti-dumping duties announcement coincided with the trade talks between visiting Commerce Secretary Anup Wadhawan and Chinese Vice Commerce Minister Wang Shouwen here on Tuesday.
The two sides also held a detailed discussion on the widening trade deficit which last year climbed to USD 57.86 billion in the total USD 95.54 total bilateral trade.
48 companies to report Q3 numbers today
As many as 48 companies will be reporting their results for December quarter later today which include names like ITC, United Spirits, InterGlobe Aviation, DB Corp, and Pidilite Industries among others.
Chartered Speed gets Sebi’s nod for IPO
Fleet bus operator Chartered Speed has received markets regulator Sebi’s approval to raise an estimated Rs 273 crore through initial public offering. The company, which had filed its draft papers with Sebi in September 2018, received “observations” from the regulator on January 11, this year, latest update with the markets watchdog showed.
Proceeds raised through fresh issue will be used to purchase passenger transportation vehicles, investment in its subsidiary firm, Chartered Bus Pvt Ltd and other general corporate purposes. Chartered speed Ltd is engaged in the business of providing passenger mobility solutions across various modes of surface transport in India.
3 stocks under ban period on NSE
Securities in ban period for the next day’s trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For January 23, Reliance Capital, Adani Power and Jet Airways are present in this list.