The Nifty failed to hold on to momentum on Tuesday and slipped below its crucial support level of 10,400 which sparked fears of a further correction in the markets. The Nifty50 opened at 10,477 and rose to an intraday high of 10,485.75. It slipped and closed 101 points lower at 10,350.
The Nifty closed at 10,350.2 on Tuesday. According to Pivot charts, the key support level is placed at 10,298.73, followed by 10,247.27. If the index starts to move higher, key resistance levels to watch out are 10,443.73 and 10,537.27.
Nifty Bank closed at 25,300.8 on Tuesday. Important Pivot level, which will act as crucial support for the index, is placed at 25,134.53, followed by 24,968.27. On the upside, key resistance level is 25,581.43 followed by 25,862.07.
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:
Dow edges up to record high; S&P 500 slips
The Dow Jones Industrial Average eked out a fourth consecutive record high close on Tuesday, while the S&P 500 ended marginally lower after a disappointing profit forecast from Priceline and a drop in financials.
The Dow Jones Industrial Average ended up 0.04 percent at 23,557.23 after spending most of the day in negative territory. The S&P 500 dipped 0.02 percent to 2,590.64. The Nasdaq Composite slipped 0.27 percent to 6,767.78, Reuters reported.
Asian markets trade lower
Asian markets were pressured in early Wednesday trade after Wall Street closed narrowly mixed in the last session. Japan’s Nikkei 225 lost 0.46 percent in early trade a day after the benchmark index hit a 26-year high while the Kospi was mostly flat, trading 0.03 percent below the flat line, CNBC reported.
The Nifty50 futures on the Singapore Stock Exchange were trading 21.5 points lower at 10389 indicating a flat to negative opening for the domestic market.
Demonetisation: Acche din for stock markets
Investors’ wealth rose by over Rs 30 lakh crore since demonetisation which took place a year ago. Over 30 stocks more than doubled investors’ wealth in the same period. Small and midcap stocks stood stand out winners post the note ban.
Mutual funds’ AUMs hit a record Rs 21.4 trillion in October thanks to financialisation of savings. Equity schemes’ AUM touched a record Rs 7.08 trillion in October, up 7.4 percent from a month before.
Demonetisation leads to multiple benefits, lower interest rates: PMO
Banks have lowered their lending rates by about 1 percent post demonetisation, the Prime Minister’s Office said, citing “multiple benefits” of the scrapping of old high-value currency notes.
“Loans got cheaper since lending rates declined by around 100 basis points”, said the Prime Minister’s Office in a tweet while highlighting the “multiple benefits of demonetisation”.
GST Council to cut rates on 150-200 items
Tax rates on 150-200 items are likely to be cut from 28 percent, with the GST Council set to approve sweeping changes including simpler procedures and a single return filing form for small firms in its next meeting on Friday.
To make the process simpler, small firms may be allowed to file of only one summary return form GSTR3B, doing away with filing of GSTR1, GSTR2 and GSTR3.
Paradise Papers cases to be considered on individual merit: FM
Finance Minister Arun Jaitley on Tuesday said the Union government will consider each case brought out by ‘Paradise Papers’ on its “individual merit”.
The government probe into the leaked documents from a Bermuda-based global offshore law firm, detailing financial holdings abroad of over 714 Indian entities and individuals, will follow the process similar to the one undertaken in ‘Panama Papers’ investigation, he added, as reported by PTI.
Bharat-22 ETF set to roll out on Nov 14
Bharat-22 Exchange Traded Fund (ETF) is expected to add close to Rs 10,000 crore to government’s disinvestment kitty. According to CNBC-TV18, the ETF’s first tranche is expected to be launched on November 14 which will invest in 22 stocks of which 19 will be public sector companies.
Govt notifies tax avoidance protocol between India-New Zealand
The government has notified the third protocol between India and New Zealand for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, PTI reported.
Sanjeev Kaushik appointed whole-time member of SEBI
Sanjeev Kaushik was appointed a whole-time member of market regulator Securities and Exchange Board of India (SEBI), an official order issued on Tuesday said.
Kaushik, a 1992-batch IAS officer of the Kerala cadre, is the Chairman and Managing Director of India Infrastructure Finance Company (IIFCL), PTI reported.
OPEC sees slower growth in demand
Global demand for OPEC’s crude will rise in the next two years more slowly than expected, the group forecast, as a recovery in prices resulting from an OPEC-led supply cut stimulates renewed output growth from non-members, Reuters reported.
Direct tax collection rises 15% in April-Oct
The government has collected Rs 4.39 trillion in direct taxes, up 15.2 percent year-on- year, during the first seven months of the current fiscal. The collection, which includes personal income tax and corporate tax, represents 44.8 percent of the total budget estimates of Rs 9.8 trillion in direct taxes for 2017-18, PTI reported.
Income Tax dept to issue 1 lakh notices for huge deposits post demonetisation
The Income Tax Department is set to issue notices to about one lakh entities and individuals, who deposited huge cash in banks post demonetisation and whose tax returns have been picked for detailed probe into suspected discrepancies. As many as 20,572 tax returns have been selected for the scrutiny procedure by the department post demonetisation, declared by the government on November 8 last year.
In the first tranche, notices will be issued to 70,000 entities who deposited over Rs 50 lakh in cash in banks but chose not to file tax returns or respond to the relevant Income Tax Department advisories, PTI reported.
HDFC Standard Life IPO subscribed 46% on Day 1
The initial public offer of HDFC Standard Life Insurance Company was subscribed 46 percent on the first day of the three-day bidding on Tuesday.
The IPO, to raise Rs 8,695 crore, received bids for 10,03,43,050 shares against the total issue size of 21,97,59,218 shares, NSE data till 1700 hrs showed.
RBI sets rupee reference rate at 64.8064 against US dollar
The Reserve Bank of India on Tuesday fixed the reference rate of the rupee at 64.8064 against the US dollar and 75.2273 for the euro. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 85.3371 and 56.85 per 100 yens, respectively.
ICICI Bank board approves part stake sale in ICICI Securities IPO
ICICI Bank on Tuesday said its board has approved a proposal to sell part-stake in fully-owned broking business subsidiary ICICI Securities through an initial public offer (IPO), PTI reported.
126 stocks to report September quarter results
As many as 126 companies are likely to declare their September quarter results including Aban Offshore, Arvind, Ashok Leyland, Bharat Forge, Bombay Dyeing, CESC, City Union Bank, EID Parry, IRB Infrastructure, MAS Financial, Mahanagar Gas, OBC, Petronet LNG, Pidilite Industries, Rain Industries, etc. among others.
Oil eases from 2-1/2 year highs
Oil settled lower on Tuesday after rising to the highest since July 2015 the previous day, while tension flared between Saudi Arabia and Iran. Brent crude futures settled down 58 cents, or 0.9 percent, at USD 63.69 a barrel, having climbed 3.5 percent on Monday, Reuters reported.
Rupee sips to 1-week low of 65.03
The rupee on Tuesday plunged by 35 paise to end at a fresh one-week low of 65.03 a dollar owing to high demand for the American currency from importers amid political upheaval in Saudi Arabia, PTI reported.
NSE bans 8 companies from trading
The derivative contracts of DHFL, HDIL, Indiabulls Real Estate, India Cements, Infibeam, JSW Energy, Reliance Communications and Wockhardt have crossed 95 percent of the market-wide position limit and are currently in the ban period.
F&O cues: Maximum Put OI at 10,000, Call OI at 10,500
On the options front, maximum Put OI was seen at 10000 followed by 10200 strikes while maximum Call OI was seen at 10500 followed by 10600 strikes.
Fresh Call writing at 10500 and 10600 strikes while Put unwinding was seen in most of the strikes started from 10000 to 10500 as market witnessed biggest fall in last 27 trading sessions since 27th Sept 2017. India VIX moved up by 1.67 percent at 13.23.
Gold dips after Monday rally as dollar strengthens
Gold prices fell 0.5 percent on Tuesday, retreating a bit from the previous day’s rally as a stronger US dollar reduced the appeal of safe-haven investments, and oil prices also dipped, Reuters reported.
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