What changed for market while you were sleeping
A slew of worrisome economic data and weak signals from the F&O counter suggest the Nifty50 is unlikely to reclaim the 10,500 level within November series.
Let’s check out what might influence Dalal Street all through Wednesday.
Singapore trading sets stage for flat opening
At 6 am, Nifty futures on the Singapore Stock Exchange were trading flat at 10,193, indicating a flat start for the Nifty50 in India.
US stocks settled lower
US stock indices fell on Tuesday as shares of General Electric plunged for the second straight day and a drop in crude oil prices hit energy stocks, Reuters reported. The Dow Jones Industrial Average fell 30.3 points, or 0.13 per cent, to 23,409.4, the S&P500 index lost 5.93 points, or 0.23 per cent, to 2,578.91 and the Nasdaq Composite index dropped 19.72 points, or 0.29 per cent, to 6,737.87.
Asian stocks slip in early trade
Asian stocks slipped on Wednesday after weaker crude oil prices took a toll on Wall Street, while the euro kept big gains after enjoying a boost from robust German economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.16 per cent. Australian stocks dropped 0.48 per cent and South Korea’s Kospi shed 0.5 per cent. Japan’s Nikkei fell 0.8 per cent.
Nifty50 makes bearish candle on daily chart
Nifty50 on Tuesday made a lower high and lower low formation for the sixth consecutive session in a row. The index made a bearish pattern and supports are shifting lower. Traders should now brace for a correction towards 10,150-10,100. It can trigger a pullback rally towards the 10,280 level, but only if the index climbs above 10,230 level on sustainable basis.
Nifty unlikely to hit 10,500 in Nov series
The Nifty is unlikely to visit the 10,400-10,500 levels during the November F&O series, if options segment activity is anything to go by. The index, which closed at 10,186 on Tuesday, is 2-3 per cent below these levels. Traders have been selling call options over the past few days, particularly at strike prices 10,300, 10,400 and 10,500. When a trader sells a call option of an index or a stock of a certain strike, he is betting that the index or stock would not cross that level during the life of the contract.
Q2 numbers today
Care Ratings, Somani Ceramics, HMT, Automotive Axles, Digjam, Golden Tobacco, Wonderla Holidays and The New India Assurance will release their quarterly numbers during the day.
Crude oil prices weaken
Crude oil prices stretched losses, weighed by forecasts for rising US crude output and a gloomier outlook for global demand growth in a report from the International Energy Agency. US crude futures traded 1.15 per cent down at $55.06 a barrel on Wednesday and were on track for their fourth day of losses. With oil prices having slid steadily from 28-month highs scaled last week, commodity currencies also came under pressure.
Bharat 22 ETF draws investor interest
Bharat 22 exchange-traded fund (ETF), comprising 22 companies, attracted robust bids from investors on Tuesday with the portion reserved for anchor investors getting subscribed six times to the tune of Rs 12,000 crore on the opening day. The issue will open for retail investors today.
WPI inflation hits six-month high
The annual wholesale inflation rose to 3.59 per cent in October from 2.6 per cent in September — a six-month high — driven by an increase in food and fuel prices and in line with a similar spike in retail inflation.
Trade deficit widens to $14 billion
India’s exports contracted 1.1 per cent in October from a year ago while imports rose 7.6 per cent, government data showed, yielding a trade deficit of $14 billion in October, highest since November 2014.
Anti-profiteering guidelines soon
Days after the government changed the tax rates of about 178 products under goods and services tax (GST), it could be looking to come out with detailed anti-profiteering guidelines, according to three people close to the development. The broad idea is to prescribe a methodology to ascertain whether companies are passing on GST reductions and benefits derived from input tax credits to consumers. The guidelines could come by December first week according to the people in the know.
5Paisa Capital to list on Thursday
5Paisa Capital, an online financial services provider belonging to the IIFL Group, will make its debut on the bourses on November 16. Market watchers expect the company to list between Rs 180 and Rs 200 apiece, which will value it at approximately Rs 250 crore. IIFL’s market capitalisation was Rs 19,000 crore on Tuesday.
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Via:: Economic Times – Stocks