What changed your market while you were sleeping
By Amit Mudgill
With just hours left for GST rollout, the biggest tax reforms ever, the domestic equity market is likely to turn choppy, with sectors whose fortunes depend of the development likely to take centrestage during Friday’s session.
Let’s check out what all might influence sentiment on the Street through the day:
Singapore trading sets stage for flat opening
At 6.25 am, Nifty50 futures on the Singapore Stock Exchange were trading 2 points higher at 9,504, indicating a flat opening for the domestic market.
Nifty forms Inverted Hammer on daily chart
A resistance at the day’s high of 9,575 level pulled down the Nifty50, as the index just managed to close higher for the first time in seven sessions, thanks to the typical volatility seen on the expiry of futures and options contracts. The index made a candlestick pattern called ‘Inverted Hammer’ on the daily chart, suggesting scepticism among investors over the market strength.
“The Nifty formed an Inverted Hammer pattern on the daily chart, as it failed to hold its gains and corrected sharply towards the 9,500 level. If it sustains below the recent swing low of 9,480, fresh selling could drag the index towards 9,450 and 9,420 levels,” said Chandan Taparia of Motilal Oswal Securities.
“On the upside, the index has strong hurdles at 9,560 and 9,580 levels. It doesn’t get in the previous trading zone between 9,560 and 9,700 levels, and the market may remain weak,” Taparia said.
July F&O rollovers at 80%
Market-wide rollover of futures and options contracts stood at 80 per cent, which was higher than the average of 75 per cent seen during the comparable period of last three series. Rollover of Nifty futures stood at 73 per cent, which was higher compared with the average rollover of 69 per cent seen in last three series.
“The Nifty50 appears to have lost some steam as lack of positive catalysts is making participants quite nervous at higher levels. GST rollout is one more event, which is making the Street nervous. With rollovers ending on a strong note, participants have reposed faith in the sustenance of the current uptrend. This certainly reduces the scope for disappointment going forward, as the open interest base is still heavy,” Edelweiss Securities said in a note.
CDSL to make BSE debut today
Central Depository Services (India) Ltd (CDSL) will make stock market debut tomorrow after successfully concluding its initial public offer last week.
The IPO of BSEs depository arm received an overwhelming response from investors as it was oversubscribed a staggering 170.16 times during June 19-21.
The qualified institutional buyers (QIBs) portion was oversubscribed 148.71 times, non institutional investors 563.03 times and retail investors
Indigo shows interest in AI
The government’s plan to disinvest in its debt-laden flag carrier got a boost with IndiGo, the country’s biggest airline by market share, expressing interest in buying a stake in Air India a day after the Cabinet approved a proposal to dilute state ownership in the company. “We have received an expression of interest for Air India from IndiGo,“ Aviation Secretary RN Choubey told reporters in New Delhi on Thursday .“It has written to us that it is interested in Air India, as the government has decided to privatise it.“
Rupee drops to 1-month low
Falling for the third straight session, the rupee on Thursday fell by another 8 paise to end at a fresh one-month low of 64.63 against the US currency amid sustained dollar demand from importers. This was the lowest closing for the domestic currency since May 30, PTI reported. The rupee resumed sharply higher by 9 paise at 64.46 per dollar as against Wednesday’s closing value of 64.55. It strengthened further to 64.44 on bouts of dollar selling by exporters and banks and also supported by higher domestic equities.
AU Small Finance Bank subscribed fully on Day 2
The Rs 1,912 crore IPO of AU Small Finance Bank was subscribed 1.36 times on the second day of the three-day bidding . The IPO received bids for 5,14,01,659 shares against the total issue size of 3,76,95,520 shares, data available with the NSE showed. The category reserved for qualified institutional buyers (QIBs) was subscribed 2.47 times, non institutional investors 70 per cent and retail investors 1.07 times. AU Small Finance Bank raised Rs 563 crore from 34 anchor invest
Global markets mixed
Asian markets were trading mixed in early morning trade. In overnight trade, the Dow Jones Industrial Average index tanked 167.58 points, or 0.78 per cent, to close at 21,287. The S&P500 index dropped 20.99 points, or 0.86 per cent, to 2,419.7. The Nasdaq Composite index slipped 90.06 points, or 1.44 per cent, to 6,144.
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Via:: Economic Times – Stocks