12 things you should know | Bonaz Capital
The Nifty50 is likely to open on a flat note on Monday tracking muted handover from Wall Street. The Nifty50 came under selling pressure in the second half of the trading session on Friday and it closed just below its opening level making a bearish candle which resembles ‘Doji’ kind of pattern on the daily charts.
Technically, 9,580 and then 9,500 are the more important support levels to watch out. The Nifty range to remain between 9,500 on the downside and 9,700 on the upside, said the report.
On the options front, maximum Put OI was seen at strike price 9,500 followed by 9,600 while maximum Call OI was seen at strike price 9,700 followed by 9,600.
Fresh Call writing was seen at strike prices 9,700 and 9,600 in the last few sessions which is restricting it to surpass its recent highs while intact Put writing at strike price 9,600 and 9,500 are supporting the market on declines.
Investors are advised to remain cautious at current levels and a drop below 9,500 would be an opportunity to go short on specific sectors such as IT and pharma while a break above 9,700 should be used to go long on the financials, suggest experts.
Stay tuned with Bonaz Capital 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 ends mixed:
US stocks ended mixed on Friday while the dollar and U.S. Treasury yields dipped after disappointing economic data.
US homebuilding fell for a third month in May to the lowest in eight months as construction activity declined broadly, while the University of Michigan said its barometer of US consumer sentiment unexpectedly fell in early June, said a report.
The Dow Jones Industrial Average was up 24.38 points, or 0.11 percent, to end at 21,384.28, the S&P 500 added 0.69 point, or 0.03 percent, to 2,433.15 and the Nasdaq Composite dropped 13.74 points, or 0.22 percent, to 6,151.76.
The Nifty50 futures on the Singapore Stock Exchange was trading 40 points higher at 9,630.50, indicating a positive opening for the domestic market.
GST from July 1; deadline extended for first set of returns
The Goods and Services Tax (GST) Council on Sunday extended the deadline for filing the first set of returns, a move that will likely soothe frayed nerves of millions of traders ahead of the new indirect tax system’s rollout from July 1.
The Finance Minister Arun Jaitley-headed GST Council, however, did not announce major changes in rates, but tweaked levies for the hospitality sector giving slight relief to five-star hotels. The council fixed two GST rates for lotteries—12 percent for government and 28 percent for government-authorised private draws.
15 days to initiate bankruptcy proceedings against 6 accounts: RBI
Bankers have been given 15 days to take legal recourse on the six stressed accounts to be admitted under the Insolvency and Bankruptcy Code (IBC).
The 6 of the 12 companies, with a combined debt of about Rs 1.9 lakh crore, include Essar Steel, Bhushan Steel, Bhushan Power & Steel, Monnet Ispat, Alok Industries and Electrosteel Steels.
Amazon to buy Whole Foods for USD 13.7 billion
Amazon.com Inc said on Friday said that it would buy Whole Foods Market Inc for USD 13.7 billion, in an embrace of brick-and-mortar stores that could turn the high-end grocer into a mass-market merchant and upend the already struggling U.S. retail industry, said a Reuters report.
Amazon used aggressive pricing to become an e-commerce retail juggernaut and has recently been experimenting with brick-and-mortar outlets. It will take over a natural and organic grocer pioneer with 456 stores, a mecca for young, high-end shoppers, that has been struggling to rein in prices and integrate technology, it said.
Oil prices edge up
Oil prices rose on Friday as some producers reduced exports and US rig additions slowed, but the rebound was modest and crude posted its fourth weekly decline on persistent concerns about global oversupply, said a Reuters report.
Brent crude futures rose 45 cents to settle at USD 47.37 per barrel and US West Texas Intermediate (WTI) crude settled at USD 44.74 per barrel, up 28 cents. Both benchmarks notched a weekly loss exceeding 1.6 percent.
Dollar falls on soft US macroeconomic data
The dollar fell broadly after weaker-than-forecast data on housing and consumer sentiment cast a risk-off sentiment over US assets, said a Reuters report.
The greenback gave back most of the previous day’s gains, easing toward levels from earlier this week that were the lowest since November, it said. The dollar index was down 0.3 percent at 97.126, and on track for a 0.14 percent decline on the week.
Tata Sons to buy Tata Steel stake in Tata Motors
Tata Sons Ltd, the holding company of India’s salt-to-software Tata conglomerate, plans to buy out Tata Steel Ltd’s stake in Tata Motors Ltd on or after June 23, it said in a regulatory filing on Saturday.
Tata Sons will buy about 83.6 million shares in Tata Motors at or around the prevailing price of the stock on the date of the planned acquisition, it said in the filing.
CDSL’s IPO to open on Monday
the initial public offering (IPO) of leading securities depository Central Depository Services (CDSL) will open for subscription on June 19, with a price band of Rs 145-149 per share.
The company is expected to raise Rs 509.92 crore at the lower end of price band and Rs 523.99 crore at the higher end of the price band.
It has already raised Rs 154.07 crore by issuing 1.03 crore equity shares to 15 anchor investors. These shares were allotted at a price of Rs 149 apiece.
Cabinet may clear Air India selloff this week
The Union cabinet may clear the decks for the government’s stake sale in loss-making national carrier Air India this week after choosing between the option of an outright sale and partial divestment, said a report.
The cabinet note prepared by the Committee of Secretaries includes both the Niti Aayog’s recommendation of complete privatisation and the civil aviation ministry’s proposal of a substantial reduction in the airline’s debt by sale of subsidiaries and assets before privatisation, a senior civil aviation ministry official told ET.
Finmin asks PSBs to explore acquisition of smaller banks
The finance ministry has asked four large PSU lenders to explore opportunities for acquisition of small and mid-sized banks with a goal to create global sized lenders, sources said.
One of the possibilities is that large public sector banks (PSBs) like Punjab National Bank, Bank of Baroda, Canara Bank and Bank of India could try looking for potential candidates for acquisition, they said.
10 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Securities which are banned for trading today include names like Allahabad Bank, Bank of India, BEML, DLF, Infibeam, JP Associates, Kaveri Seed Company, OBC, Ujjivan and Reliance Communication.