What changed for the market while you were sleeping? Top 12 things to know

The Nifty50 started off the week on negative note, extending losses for fifth consecutive session on Monday. The index after gap opening immediately slipped into red and closed below psychological 11,000 levels for first time since July 19, forming bearish candle on the daily charts which also resembles a ‘Bearish Beld Hold’ kind of pattern.

A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.

Fear of liquidity crunch in NBFCs, trade tensions between US and China, rising crude oil prices and weakening rupee weighed on sentiment.

The Nifty50 after opening higher at 11,164.40 hit an intraday high of 11,170.15, but immediately wiped out opening gains and extended losses as the day progressed. The index has broken 11,000 levels and hit a day’s low of 10,943.60, before closing below 100-day moving average, down 175.70 points at 10,967.40.

The 50-share NSE index lost 793 points or 6.7 percent from its record high of 11,760 seen on August 28.

India VIX moved up sharply by 14.19 percent to 17.74 and it is now at highest levels in last seven months. Rising volatility with falling Put Call Ratio suggests that bears are holding the tight grip on the market, experts said.

According to Pivot charts, the key support level is placed at 10,883.93, followed by 10,800.47. If the index starts moving upwards, key resistance levels to watch out are 11,110.54 and 11,253.67.

The Nifty Bank index closed at 24,925.20, down 671.70 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,699.97, followed by 24,429.63. On the upside, key resistance levels are placed at 25,445.17, followed by 25,920.03.

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 falls as US-China tariffs kick in

The S&P 500 and the Dow closed lower on Monday after a new round of US-China trade tariffs kicked in, dampening last week’s hopes for talks between the two countries, and as investors awaited a widely expected interest rate hike by the Federal Reserve.

The Dow Jones Industrial Average fell 181.45 points, or 0.68 percent, to 26,562.05, the S&P 500 lost 10.3 points, or 0.35 percent, to 2,919.37, and the Nasdaq Composite added 6.29 points, or 0.08 percent, to 7,993.25.

Asian markets under pressure as US-China trade fight revives growth fears

Asia stocks struggled on Tuesday as the latest round of US-China tariffs revived fears the trade dispute would knock global growth, while crude oil was elevated near four-year highs after Saudi Arabia and Russia ruled out immediate production increases.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.1 percent. Australian stocks lost 0.08 percent and Japan’s Nikkei bucked the trend and edged up 0.2 percent.

SGX Nifty

Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a rise of 10 points or 0.1 percent. Nifty futures were trading around 11,002-level on the Singaporean Exchange.

Second North Korea summit ‘quite soon’: Donald Trump

US President Donald Trump says the second summit with North Korean leader Kim Jong Un is likely to take place “quite soon.” Speaking at the United Nations, Trump says the relationship with the country whose leader he branded last year as “Little Rocket Man” is much improved. “It was a different world. That was a dangerous time. This is one year later, a much different time,” he said.

Trump is set to meet with South Korea’s Moon Jae-in to discuss North Korea and trade details. Moon is expected to convey to Trump a personal message from Kim delivered at their inter-Korean talks last week.

BofAML ups CAD forecast to 2.8% in FY19

Expecting oil prices to slide further, Bank of America Merrill Lynch (BofAML) widened its current account deficit (CAD) estimate by 0.20 percent to 2.8 percent of GDP for fiscal year 2018-19. The widening current account gap is one of the major concerns which is putting pressure on the rupee, which has depreciated 13 percent against dollar this year.

Brent breached the $80 per barrel mark on September 24 and analysts at the American brokerage said they expect it to go up further to $95 by June 2019, which will put pressure on the current account. “We raise CAD forecasts by 0.20 percent to 2.8 percent of GDP in FY19 and by 0.10 percent to 2.9 percent in FY20 with our oil strategists hiking Brent forecasts,”it said.

Oil firm as OPEC, Russia resist calls to raise output as Iran sanctions loom

Oil markets opened strongly on Tuesday, with Brent crude remaining near a four-year reached the previous session. Oil markets have been driven up by looming US sanctions against Iran and an unwillingness or inability by Middle East dominated producer cartel OPEC and Russia to raise output.

Brent crude futures were at $81.39 per barrel at 0042 GMT, up by 19 cents, or 0.2 percent from their last close. This was not far off the November 2014 high of $81.48 a barrel reached the previous day. US West Texas Intermediate (WTI) crude futures were at $72.22 a barrel, up 14 cents, or 0.2 percent from their last settlement.

RBI to conduct open market operations to infuse liquidity

The Reserve Bank will conduct open market operations (OMO) on September 27 to purchase government bonds to infuse liquidity of Rs 10,000 crore. As part of the OMOs, the RBI will purchase government securities maturing in 2020 bearing interest rate of 7.80 percent, 2022 (8.20 percent), 2025 (7.72 percent), 2027 (6.79 percent) and 2031 (6.68 percent).

“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of government securities under Open Market Operations for an aggregate amount of Rs 100 billion on September 27, 2018 (Thursday),” the apex bank said in a release.

FM to meet PSU banks chiefs today to review financial performance

Finance Minister Arun Jaitley will meet the heads of public sectors banks (PSBs) tomorrow as part of the annual financial performance review exercise. The meeting is expected to discuss a host of issues, including progress made with regard to reduction in non-performing assets, sources said. The meeting will happen against the backdrop of the ‘Alternative Mechanism’ (AM) to merge three public sector banks Bank of Baroda, Vijaya Bank and Dena Bank with a view to create a global-size lender, which will be stronger and sustainable.

Besides, the finance minister will also discuss credit growth and bad loan situation, they said, adding that various recovery measures by banks and legislative steps taken by the government to expedite recovery are also part of the agenda.

Rupee dives 43 paise to 72.63 as crude reaches $80

The rupee struggled to make headway after a two-day climb and backtracked to end sharply lower by 43 paise to 72.63 against the US dollar after crude prices soared ahead of impending US sanctions on Iran. Reversing its recovery momentum, the rupee opened lower at 72.47 from weekend close of 72.20 at the inter-bank foreign exchange (forex) market.

Keeping the downtrend intact, the local unit lost further ground to hit a session low of 72.73 in mid-afternoon session before concluding the day at 72.63, revealing a steep loss of 43 paise, or 0.60 percent.

NSE to move 15 companies to restricted trading category from Sept 27

NSE will shift 15 firms to the restricted trading category from September 27 as part of a surveillance review. Trading in 15 securities will be available in Trade for Trade segment at a price band of 5 percent or lower with effect from September 27, the exchange said in a circular.

The firms are Simbhaoli Sugars, Mawana Sugars, Sakthi Sugars, Rana Sugars, The Ugar Sugar Works, Rajshree Sugars & Chemicals, Spentex Industries, Bedmutha Industries, Flexituff International, Jai Balaji Industries, Kesar Enterprises, Refex Industries, Kothari Sugars And Chemicals, Palash Securities and Precot Meridian.

Aavas Financiers IPO to open today

Housing finance company Aavas Financiers is going to open its initial public offer for subscription on September 25 with a price band of Rs 818-821 per share. The issue will close on September 27. Bids can be made for a minimum lot of 18 equity shares and in multiples of 18 equity shares thereafter.

Equity shares are proposed to be listed on BSE and NSE. The global co-ordinators and book running lead managers to the offer are ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Spark Capital Advisors (India). The book running lead manager to the offer is HDFC Bank.

Anmol gets SEBI approval for Rs 750-cr IPO

Biscuit maker Anmol Industries has received market regulator SEBI’s approval for its IPO to raise Rs 750 crore. Anmol Industries has established a brand presence in northern and eastern India, and is looking to diversify into southern and western markets, it said in a release.

According to the DRHP filed by Anmol Industries, for the financial year 2016-17, the company posted a total income of Rs 1,240 crore and net profit of around Rs 72 crore. Shares of the Kolkata-based company are proposed to be listed on the BSE and the NSE.

2 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.

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