The Nifty, which started last week on a muted note, failed to hold on to its crucial support placed at 10,700 on Friday. It ended the session with a small bearish candle on the daily candlestick chart and a Spinning Top candle – an indecisive pattern – on the weekly chart.
The index is stuck in a 10,550-10,777 range. If bulls have to regain control, then a close above 10,777 is required.
But given that we are witnessing strong buying at lower levels, there is a high possibility of the index consolidating this week.
The Nifty, which opened Friday at 10,738.45, rose to an intraday high of 10,764.75 before bears gained control. The index slipped below its crucial support placed at 10,700 to hit an intraday low of 10,681.50, before closing Friday at 10,696.20, down 0.37 percent.
“The Nifty ended Friday with a small bearish candle formation, whereas the weekly price action resulted in a Spinning Top kind of indecisive formation. The broader markets are under pressure, with advance-decline ratio consistently favouring bears,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, said.
He added that since no technical parameter has generated fresh sell signals on lower timeframe charts, the Nifty may resume its strength if it manages a close above 10,777 levels over the next couple of trading sessions.
If weakness persists, he sees the Nifty once again retesting its recent lows of 10,550. “Essentially, it looks like the markers are directionless and stuck in a 10,550-10,750 range. Unless it comes out of this range, a directional move may not emerge in near future.”
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.
Asian shares gain as upbeat US jobs data offsets trade worries
Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent while Japan’s Nikkei rose 1.0 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 44 points or 0.41 percent. Nifty futures were trading around 10,723.50- level on the Singaporean Exchange.
Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the US economy and geopolitical tensions eased.
The Dow Jones Industrial Average rose 219.37 points, or 0.9 percent, to 24,635.21, the S&P 500 gained 29.35 points, or 1.08 percent, to 2,734.62 and the Nasdaq Composite added 112.22 points, or 1.51 percent, to 7,554.33
FPI outflow hits 18-month high at Rs 29,714 cr in May
Foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices.
This comes following an outflow of Rs 15,561 crore from the capital markets (equity and debt) in April. Prior to that, foreign investors had pumped in Rs 2,662 crore in March.
BBB to hold interviews for MDs and EDs of PSU banks from June 13
Banks Board Bureau, headed by former DoPT Secretary BP Sharma, will undertake its first major assignment of shortlisting candidates for about 30 top-level vacancies in the public sector banks beginning June 13. There are already some vacancies at the managing director (MD) and at the executive director (ED) level and some would be created during course of the current fiscal, sources said. In all, there are places for 12 MDs and 18 EDs who will be appointed during this fiscal, sources said, adding that confidential report of over 60 eligible candidates have been sought from various banks for these vacancies.
Black money: Switzerland set to amend anti-money laundering law
Stepping up efforts to curb illicit fund flows, Switzerland plans to amend its anti-money laundering law wherein financial intermediaries will be required to verify information on beneficial owners.
The Alpine nation, known for its banking secrecy practices, has been taking various measures in the fight against black money amid intense global pressure from various countries, including India. The Swiss Federal Council has now initiated the consultation process for amendments to the country’s anti-money laundering law. As part of putting in place stringent mechanism to stymie illegal fund flows, the country plans to provision for improving the effectiveness of suspicious activity reporting for money laundering and terrorist financing.
Gold prices fall by Rs300 to Rs31,600 per 10 grams on weak global cues
Gold prices dived by Rs300 to Rs31,600 per ten grams, extending their slide for the third straight day at the bullion market on Saturday, tracking a weak trend overseas amid fall in demand from local jewellers.
Traders said sentiment remained downbeat on the back of a weak global trend where gold fell after stronger than forecast US payrolls data boosted expectations that the Federal Reserve may press ahead with another US interest rate hike this month, lifting the dollar.
Tussle between NSE, SGX hits Nifty futures trading
The dispute between the National Stock Exchange and the SGX seems to be having an impact on Nifty futures trading. Interest in India’s top traded derivative index has witnessed a fall since February this year, the Hindu Business Line reported. Data shows that open interest on SGX traded Nifty futures is down by 50 per cent since January 31. Trading in the onshore market on the NSE is also down by 25 percent.
SEBI bars Mallya from securities market for 3 years
SEBI today barred fugitive businessman Vijay Mallya from the securities market for another three years as also from holding directorship in listed companies for five years in the case of illegal fund diversions at United Spirits Ltd. Besides, the watchdog has imposed a one-year ban on two former company officials — Ashok Capoor and P A Murali. Through an interim order in January 2017, the regulator had barred Mallya and six former officials of United Spirits, including Capoor and Murali, from the securities markets in the case related to illegal fund diversions.
73K deregistered cos deposited Rs 24,000 crore post demonetisation: Govt data
As many as 73,000 companies that have been deregistered deposited Rs 24,000 crore in bank accounts post demonetisation, according to government data. As part of cracking down on black money flows and illicit assets, the Corporate Affairs Ministry has struck off the names of around 2.26 lakh companies that have not been carrying out business activities for long.
Many of these companies are suspected to have been used for illegal fund flows. Data compiled by the ministry showed that out of the 2.26 lakh deregistered companies, the bank details of 1.68 lakh of them showed that post demonetisation cash was deposited in these accounts.[“Source-moneycontrol”]