It was a volatile day for Indian markets despite starting on a positive note. The Nifty index reclaimed 10,200 but profit booking at higher levels pushed the Nifty below 200-DMA for the third consecutive day in a row and made a bearish candle on Thursday.
The Nifty50 witnessed profit booking decline soon after it reclaimed 10200. The index has crucial support around 200-DEMA but one thing is clear that the current market structure closely resembles sell on rallies kind of markets.
The index witnessed selling pressure in three out of four days when the index rose above 10200 levels. Hence, for bulls to regain control, 10,200 is crucial for the bulls, suggest experts.
The Nifty index which opened at 10105 rose to an intraday high of 10207 before bears mauled the D-Street. The index slipped to an intraday low of 10105. The index closed 40 points lower at 10,114.
India VIX move up by 0.93 percent at 15.24. On the options front, maximum Put open interest is placed at 10000 followed by 10100 strikes while maximum Call open interest is at 10500 followed by 10400 and 10200 strikes.
According to Pivot charts, the key support level is placed at 10,077.53, followed by 10,040.27. If the index starts moving upwards, key resistance levels to watch out are 10,179.93 and 10,245.07.
The Nifty Bank index closed at 24,141.5 on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 24,052.74, followed by 23,963.97. On the upside, key resistance levels are placed at 24,272.34, followed by 24,403.17.
US markets tumble after Trump tariff action
US stocks slumped on Thursday as President Donald Trump’s move to impose tariffs on up to $60 billion of Chinese imports drove fears about the impact on the global economy, fuelling the biggest percentage declines in Wall Street’s three major indexes since they entered correction territory six weeks ago, reports Reuters.
The Dow Jones Industrial Average fell 724.42 points, or 2.93 per cent, to 23,957.89, the S&P 500 lost 68.24 points, or 2.52 per cent, to 2,643.69, and the Nasdaq Composite dropped 178.61 points, or 2.43 per cent, to 7,166.68.
Asian stocks slide as trade tensions escalate
Asian markets slumped early on Friday, tracking sharp falls in U.S. and European stocks, which took a hit on fears of a potential trade war. In Tokyo, the Nikkei 225 fell 2.97 percent in the morning and the broader Topix lost 2.43 percent, with its 33 sectors trading lower across the board, CNBC reported.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 117.5 points or 1.16 percent. Nifty futures were trading around 10,000-level on the Singaporean Exchange.
Trump slaps tariffs of $50 bn of Chinese imports
US President Donald Trump launched a long-promised anti-China tariffs, but his actions appeared to be more of a warning shot than the start of a full-blown trade war with Beijing, Reuters reported. The United States runs a USD 375 billion goods trade deficit with China.
A presidential memorandum signed by Trump will target up to USD 60 billion in Chinese goods with tariffs. China unveiled plans on Friday to impose tariffs on up to USD 3 billion of US imports in retaliation against US tariffs on Chinese steel and aluminum products.
Chinese ambassador warns of ‘trade war’ over Trump China tariffs
China’s ambassador to the US warned Donald Trump the Asian nation would return fire on tariffs the US president announced, saying the American middle class would pay the price, Mint reported.
Chinese ambassador to the US Cui Tiankai said accusations of intellectual property violations are “groundless” and his country “will certainly fight back and retaliate. If people want to play tough, we will play tough with them and see who will last longer”.
CBI investigates Rs 1394.43 cr Hyderabad bank fraud
The Central Bureau of Investigation (CBI) has registered a case based on a complaint filed by Union Bank of India against Hyderabad-based Totem Infrastructure, alleging it was cheated to the tune of Rs 303.84 crore by the company.
The complaint mentions promoters and directors Tottempudi Salalith and Tottempudi Kavita as the accused in the case. The company allegedly took a loan from a consortium of 8 banks, of which UBI was the lead bank.
CAD may treble to $10-12bn in Q4 on higher trade deficit: Icra
The country’s current account deficit (CAD) is likely to treble to USD 10-12 billion in the fourth quarter of the current financial year, against the same year-ago period, due to higher trade deficit, says an Icra report.
The current account deficit had increased to USD 13.5 billion, or 2 percent of the gross domestic product (GDP) in the third quarter as well, against USD 8 billion, or 1.4 percent of GDP in the same year-ago period. “We expect the current account deficit to widen to USD 10-12 billion in Q4 FY18 from the low USD 3.4 billion in Q4 FY17, led by the increase in the merchandise trade deficit, even as the services trade surplus is expected to improve,” rating agency Icra said.
John Bolton to replace HR McMaster as NSA: Trump
John Bolton, a noted foreign policy hawk, will replace H.R. McMaster as President Donald Trump’s national security advisor, the latest move in an ongoing shakeup of the president’s top advisors, CNBC reported.
In a tweet Thursday, Trump said Bolton, a former US ambassador to the UN, will take over the post on April 9. McMaster, an Army lieutenant general, “has done an outstanding job & will always remain my friend,” the president wrote.
M&A deal volume at 7-year high in 2017 with 1,022 transactions: EY
Corporate India’s merger and acquisition (M&A) deal volume touched a seven-year high in 2017 with 1022 transactions, and the outlook for this year looks promising as well, says an EY report.
As per EY’s latest Transactions Annual report released today, Indian M&A ended the year 2017 with 1,022 deals with a disclosed value of USD 46.8 billion. While the deal volume reached a record high (as compared to 895 deals in 2016) since 2010, the deal value was lower by 12 per cent from USD 53.2 billion in the previous year, it said.
Govt to raise gas price to highest level in 2 years
The government may raise domestic natural gas price next week to its highest level in two years, a move that will translate into higher CNG price and increase cost of electricity and urea production.
The increase in price will boost earnings of producers like Oil and Natural Gas Corp (ONGC) and Reliance Industries but will also lead to a rise in CNG price, which uses natural gas as input. It would also lead to higher cost of urea and power production.
Tax-free gratuity cap doubled to Rs 20 lakh
Parliament on Thursday passed a key bill that will empower the government to fix the amount of tax free gratuity and the period of maternity leave with an executive order.
The legislation will enable the government to enhance the ceiling of tax free gratuity to Rs 2 million from the existing Rs 1 million for employees falling under the Payment of Gratuity Act.
Ayushman Bharat to push health insurance penetration to 50%: CRISIL
The Ayushman Bharat-National Health Prorection Mission is expected to increase health insurance penetration from 33 percent of the population to 50 percent on implementation, said a research report by CRISIL.
As of fiscal 2017, nearly 438 million persons were covered under various health insurance schemes, including 335 million under various government sponsored schemes including Rashtriya Swasthya Bima Yojana (RSBY). With the new scheme, the coverage will increase to more than 650 million persons.
ICICI Securities IPO subscribed 29% on Day 1
ICICI Securities’ over Rs 4,000 crore initial public offer (IPO) was subscribed 29 per cent on the first day of the three-day bidding on Thursday. The IPO of the brokerage firm, part of ICICI group, received bids for 1,30,00,792 shares against the total issue size of 4,42,25,343 shares, NSE data showed.
he initial share sale would close on March 26 and is being offered in a price band of Rs 519-520. The IPO is of of 7,72,49,508 shares (including anchor portion of 3,30,24,165 shares).
Mishra Dhatu Nigam IPO subscribed 64% on Day 2
The initial public offer of speciality alloy maker Mishra Dhatu Nigam (MIDHANI) was subscribed 64 per cent on the second day of bidding on Thursday. The IPO of the state-owned firm to raise Rs 438 crore received bids for 3,10,74,150 shares against the total issue size of 4,87,08,400 shares, data available with the NSE showed.
The price band for the issue has been fixed at Rs 87-90. SBI Capital Markets and IDBI Capital Markets & Securities are managing the issue.
7 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 HDIL, IDBI, IFCI, Jet Airways, Jindal Steel, JP Associates, and Reliance Communications.
Oil retreats after hitting 6-week highs near $70 a barrel
Oil prices surrendered early gains on Thursday as investors booked profits after this week’s rally, but losses were limited by the ongoing efforts of OPEC and its allies to curb supplies, Reuters reported.
Brent crude futures were down 35 cents at USD 69.12 a barrel after rising to USD 69.70, which was close to the highest level since the start of February.moneycontrol