What changed your market while you were sleeping
Thursday’s session on Dalal Street is likely to witness high trading volume and strong volatility as the November series F&O contracts expire and the semi-annual index rebalancing takes place.
Let’s check out what all might influence Dalal Street through the day.
Singapore trading sets stage for negative opening
At 6.30 am, Nifty futures on the Singapore Stock Exchange were trading 46 points, or 0.45 per cent, down at 10,313, indicating a negative start for the Nifty50.
Nifty forms small bearish pattern
Nifty50 on Wednesday struggled hard to stay afloat but a late selling ensured the index ends lower for second straight day. With this, the index has negated six sessions of higher high formation. technial signals are mixed as only a few momentum indicators are in sell mode. Further consolidation seems to be in the offing, analysts said. The index is expected to find support around 10,300 level, while a close above 10,400-410 levels is seen a must for any material upside. For understanding, the index has so far failed to break the broader range for past seven sessions.
Market-wide rollovers at 57%
Market-wide rollovers till Wednesday stood at 57 per cent compared with the three-series average of 51 per cent. Rollover of Nifty futures stood at 46 per cent, which is also high compared with the average rollover of 42 per cent seen in last three series. “Thursday’s first half will be critical for rollovers, especially for short roll positions. Going into the expiry day, we hold a cautious view on the index,” Edelweiss Securities said in a note.
US stocks closed mixed
The Dow Jones Industrial Average index rose 103.97 points, or 0.44 per cent, to 23,940 in overnight trade. The S&P500 index lost 0.97 point, or 0.04 per cent, to settle at 2,626. The Nasdaq Composite index dropped 88.02 points, or 1.27 per cent, to 6,824.
Sensex may touch 35,700 by next Dec: MS
Morgan Stanley has set a target of 35,700 for the Sensex by December 2018, which is 6 per cent above the index’s Wednesday closing of 33,602. The brokerage said a combination of supportive global growth, improving capex, fiscal spending and a buoyant consumer augur well for growth in 2018. It is optimistic on industrials, corporate banks, infrastructure owners, discretionary consumption, domestic materials and software stocks.
Govt likely to issue bonds directly to banks
The government is likely to directly issue Rs 1.35 lakh crore of bank recapitalisation bonds, taking the entire liability of repayment and interest in the central budget, as it seeks to extricate state-run lenders from a mounting pile of bad debt and make funds available to more productive sectors of the economy.
Class action lawsuit on DRL in US
Dr Reddy’s Laboratories said it has been served a securities class action lawsuit in the US for alleged violations of federal securities laws. The lawsuit filed at the district court of New Jersey seeks damages to compensate the class of investors for a ‘purported decline’ in the company’s share price allegedly caused by the misstatements or omissions.
Jet deal with Air France-KLM
Jet Airways and Air France-KLM signed an agreement that will potentially give the Indian carrier unrestricted access to Europe and North America and could, according to experts, reduce the scope of its existing partnership with Etihad Airways.
Guarantors too face insolvency heat
The Insolvency and Bankruptcy Board of India (IBBI) is expected to step up its drive against defaulters by allowing lenders to act against high-profile individuals, including promoters of many companies, who have given personal guarantees to corporate loan defaulters.
ICICI Lombard, NIC face Rs 300 cr payout
National Insurance Company and ICICI Lombard may take a combined hit of ?300 crore from the fire that gutted the manufacturing unit of Haldiram’s, the biggest sweets and snacks maker in the country. The fire, which raged for 15 hours on September 6 and took more than 100 fire tenders and 200 firefighters to douse, destroyed a new manufacturing unit with modern machines in Noida’s Sector 68.
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Via:: Economic Times – Stocks