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Traders’ Diary: High volatility seen in the near term
13 Jun, 2018 | 08:23:21 AM IST
The handshakes and bonding seen at the historic summit between the US President Donald Trump and North Korean leader Kim Jong Un did the trick for the bulls on Dalal Street on Tuesday.
1 New Update
The underlying short-term trend of Nifty continues to be positive, as there is no confirmation of any trend reversal pattern at the highs. At the same time, the upper band between 10,850 and 10,870 levels continues to act as a hurdle, and intraday weakness is likely to emerge at highs
- Nagaraj Shetti, HDFC Securities
If Nifty manages to sustain above 10,860, it may advance towards the 10,900-10,930 range. On the downside, the 10,820 level remains a crucial intraday support
- Rajesh Palviya, Axis Securities
Lack of follow through on the downside reinstated the bullish sentiment for the time being. The bulls to face litmus test at the 10,930 level. Till then, the market will be vulnerable to bouts of volatility. Traders are advised to remain focused on stock-specific opportunities, with a stop loss below 10,777 on closing basis
- Mazhar Mohammad, Chartviewindia.in
Nifty formed a bullish candle and negated the negative effect of the Doji candle of the previous session. Now, it has to hold above 10,770 to extend its move towards 10,888 and then 10,929 levels, while major supports are shifting higher to 10,777 and then 10,720 levels
- Chandan Taparia, Technical & Derivative Analyst, Motilal Oswal Securities
Sebi forms panel to frame rules for direct listing of Indian firms abroad
Market regulator, the Securities and Exchange Board of India (Sebi), has formed an expert panel to mull norms for direct listing of Indian companies overseas. At present, listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa.
FIIs continue to sell, while DIIs continue to be net buyers. Market continued the uptrend and is slowly edging back towards previous highs. We continue to remain cautious and would not advocate entering fresh longs at this point. We remain neutral and would wait for further cues before picking a direction at this juncture
- Nikhil Kamath, Co-founder, Zerodha
It was a positive day on the bourses as an upbeat global sentiment and sustained buying in index stocks pushed benchmark indices higher. On the sectoral front, barring the metals index, all other sectoral indices on the NSE traded with gains
- Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MF
IIP rises, inflation steady
It is time to be cautious on Indian assets. There is definitely an uncertainty on oil prices. There is certainty as far as the US rates are concerned. The emerging market in general is under stress and in the near term, I expect some consolidation in the rupee. What we need is general soothing of EM environment which at the moment is not looking very bright
- Vivek Rajpal, Asia interest rates strategist, Executive Director, Nomura
Going forward, market participants would be actively tracking global developments, progress in monsoon, currency movement and crude oil prices. Furthermore, FOMC meet outcome scheduled for Wednesday will be crucial and it would dictate further course of market. We expect volatility to remain high in the near term and hence would advise investors to stick to only fundamentally sound companies
- Jayant Manglik, President, Religare Broking
Sensex, Nifty hit over 4-month high ahead of IIP, inflation data
Rising for a second straight day, the domestic equity market hit over 4-month high on Tuesday on healthy buying in FMCG, pharma, IT and bank stocks after a historic meet between the US President Donald Trump and North Korean leader Kim Jong Un.
CLOSING BELL: Sensex jumps 209 pts, Nifty50 ends at 10,843 ahead of IIP, CPI data; MMTC up 13%, DRL 5%
BSE, Ebix plan to launch insurance platform by year-end
Leading bourse BSE and its joint venture (JV) partner Ebix, a US-based insurance exchange, are awaiting approval from the IRDAI to start an insurance distribution exchange platform, and expect to launch it by the end of this year, a senior BSE official said. The platform will allow distribution outlets, stock brokers, wealth management advisors and financial institutions to sell life and non-life insurance products.
V-Mart advances 2% on opening new store in UP
V-Mart Retail has opened a new fashion store in the state of Uttar Pradesh. With this the tally of stores in Uttar Pradesh is 57 fashion stores and 17 composite stores. This takes the total number of stores to 178 Stores in 149 Cities across 14 states, with 37 composite stores & 141 fashion stores with a total area of approximately 14.9 lakh square feet.
Bullion watch: Gold, silver edge lower
MCX Gold futures were trading 0.21 per cent, or Rs 66 lower at Rs 31,150 per 10 grams at 11:05 am (IST), while MCX Silver futures were down 0.28 per cent, or Rs 114, at Rs 40,677 per 1 kg at the same time.
KDDL adds 3% as board approves fund raising plan
KDDL has received an approval to raise funds up to Rs 30 crore by issue of Equity Shares through Preferential Issue/Qualified Institutional Placement (QIP)/combination. The board of directors of the company at their meeting held on Monday approved the same.
Arrow Greentech gains 2% on deal with Versarien
Arrow Greentech has signed a wide ranging agreement with Versarien Pic through its subsidiary company Cambridge Graphene, covering a variety of the graphene products and activities. The agreement is for the supply of the Versarien's propriety Graphinks (graphene inks) to Arrow Greentech, for onward supply to the water-soluble film market world-wide.
Orchid Pharma surges 5% on receiving GMP from EU
Shares of Orchid Pharma hit 5% upper circuit limit after receiving European Union's Good Manufacturing Practice (GMP) certification based on the inspection of the Orchid's API manufacturing facility located at SIDCO Industrial Estate, Kancheepuram district, in the state of Tamil Nadu.
PIMCO unimpressed by 8% India bond yield
India’s benchmark bond yield jumped above 8 per cent last week for the first time in three years. Even that isn’t enough to lure back some of the world’s biggest money managers. Higher oil prices are a key negative risk for India, particularly on inflation and the current-account deficit, said Roland Mieth, Singapore-based emerging-market portfolio manager at Pimco, which oversees $1.8 trillion globally.
Videocon gives up 5% on insolvency worries
Fears of insolvency proceedings gripped Videocon as the stock rolled down 5 per cent on Tuesday. The company has informed stock exchanges that an interim resolution professional (IRP) has been appointed for its insolvency process. The stock hit 5 per cent lower circuit limit at Rs 7.56 on the BSE just after the announcement.
DCM Shriram rallies 7% on share buyback proposal
Stock of DCM Shriram lapped up the news of a share buyback proposal as it surged over 7 per cent on Tuesday. The company informed stock exchanges that its board will meet on June 18 to consider a share buyback proposal. Following the announcement, the stock rose 7.23 per cent to hit a high of Rs 290.45 on the BSE early today.
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Nifty option OI concentration (Source: SMC)
PSU bank index up; SBI top gainer
Gains in State Bank of India (SBI) (up 0.99 per cent), Oriental Bank of Commerce (up 0.54 per cent), Canara Bank (up 0.49 per cent) and Bank of India (up 0.20 per cent) were keeping the Nifty PSU Bank index in the green during Tuesday's trade.
Looking for a haven in this emerging market turmoil? Try India
As the threat of a trade war grows and emerging-market central banks sacrifice growth to protect their currencies, equity investors have their backs to the wall. But in their search for a haven, one name keeps cropping up: India
Hotel Leela rallies 3% on JM Fin ARC deal
Hotel Leelaventure went up over 3 per cent today as its board approved an enabling resolution that allows it to transfer a majority stake to JM Financial Asset Reconstruction Company. The hospitality chain’s co-chairman, however, hinted at a possible deal with a consortium of three foreign entities to find a solution to its debt problem.
Usha Martin jumps 8% on plans to cut debt
Usha Martin's move to sell its steel business gave its stock a spark, which rallied 8 per cent on Tuesday. On Monday, its board decided to explore the sale of its steel business to help deleverage the company. The scrip was up 7.80 per cent at Rs 31.80 at around 9.20 am. The BSE Sensex rose 76 points, or 0.22 per cent, to 35,560.
Fortis slides as board defers Q4 results again
Postponement of quarterly results cast a cloud on Fortis Healthcare as the stock weakened on Tuesday. The company said its board has again deferred approval of quarterly and annual financial results for the period to March 2018, saying more time is needed to consider various aspects of the outcome of an internal investigation on alleged financial irregularities. The scrip was trading nearly 1 per cent down at Rs 142.30 at around 9.30 am. The BSE Sensex was up 40 points, or 0.11 per cent, at 35,523.
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Rupee opens 3 paise lower against US dollar
The rupee on Tuesday opened 3 paise lower at 67.45 against the US dollar. The domestic currency on Monday staged a recovery to close 8 paise higher at 67.42 on fresh bouts of dollar selling by exporters and corporates. Weakness in US dollar amidst slight reversal in US Treasury yields also helped the domestic currency recoup some losses.
RCom, JP Associates among most active stocks on NSE
Price as on 09:38:11 AM 09:38 AM, Click on company names for their live prices.
Opening Bell: Sensex gains 50 points; Nifty50 above 10,800
Sensex gains 50 points; Nifty50 above 10,800; Usha Martin rallies 9%, Sadbhav Engg 5%
PRE-OPEN SESSION: Sensex rises 200 points, pares gains; Nifty50 kisses 10,800
Sensex rises 200 points, pares gains; Nifty50 kisses 10,800; rupee trades at 67.45 against US dollar.
Singapore trading sets stage for flat start
Nifty futures on the Singapore Stock Exchange were trading 1.5 points, or 0.01 per cent, lower at 10,793, indicating a flat start for the Nifty50.
Nifty50 forms Gravestone Doji pattern
A strong selloff from day's high of 10,850 level wiped off most of the gains that Nifty50 had logged in intraday trade on Monday. This resulted in the formation of a small real body on the daily chart, with a long upper shadow that resembled a 'Gravestone Doji' pattern. The formation signalled a short-term reversal.
Trump, ‘Rocket Man’ shake hands
With a handshake, President Donald Trump and North Korea's Kim Jong Un kicked off a momentous summit Tuesday, creating an indelible image of two unorthodox leaders as they began a conversation that could determine historic peace or raise the specter of a growing nuclear threat, AP reported.
Asian shares mixed
Japan's Nikkei climbed 0.8 per cent to the highest in three weeks and South Korean shares added 0.1 per cent, Reuters reported. Australia's benchmark index was a tad firmer while New Zealand eased 0.3 per cent. That left MSCI’s broadest index of Asia-Pacific shares outside Japan a touch softer at 573.31.
IIP, CPI data to be released today
The government is expected to announce industrial production data (IIP) for April 2018 on Tuesday, June 12, 2018. The index of industrial production (IIP) grew 4.4 per cent in March against a downward revised 7 per cent increase in the previous month. Economists surveyed by Reuters had forecast IIP to grow at 5.9 per cent in March. CPI numbers for May figures will also be released later in the day.
Fed review to begin today
The US Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on Tuesday, where it is anticipated to raise US interest rates. The European Central Bank (ECB) and Bank of Japan's policy meetings are also due this week.
Sebi weighs custodians to shield retail investors
The Securities and Exchange Board of India plans to tighten rules for trading settlement and introduce custodians for retail investors, said two people familiar with the matter. Sebi’s plan is to ensure brokers do not misuse clients’ accounts and sell their shares without nod unless the client has defaulted.
FPIs sell Rs 1,157 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 1157 crore worth of domestic stocks on Monday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 1,063 crore, data suggested.
US stocks end flat
All three major US stock indexes closed slightly higher on Monday as investors eyed the looming United States-North Korea summit on Tuesday in Singapore while shrugging off the weekend’s factious meeting of the Group of Seven nations. The Dow Jones Industrial Average index rose 5.78 points, or 0.02 per cent, to 25,322.31. The S&P500 index gained 2.97 points, or 0.11 per cent, to 2,782. The Nasdaq Composite index added 14.41 points, or 0.19 per cent, to 7,659.93.
Sensex on Monday
It wasn’t quite a Monday for the bulls on Dalal Street, as volatility gripped the market, leaving them high and dry! The message of the market was loud and clear: We are in the range and let’s respect that range. The S&P BSE Sensex slipped 221 points from day’s high to end at 35,483, up just 40 points. For NSE's Nifty50 pack, the 10,800 level remained elusive, as the index settled at 19.30 points higher at 10,786.
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