What changed for the market while you were sleeping | Bonaz Capital
The Nifty is likely to open higher on Monday, tracking positive closing on the Wall Street. The index slipped below its immediate support level of 5-days exponential moving average (DEMA) on Friday and made a spinning top kind of pattern on daily candlestick charts.
The only positive takeaways from Friday’s session is that bulls managed to defend its crucial support level of 9,400, but for the momentum to continue, Nifty should take out its previous record high of 9,532 convincingly, suggest experts.
From current levels, there is a higher probability of a bounce towards 9,500 in the coming sessions. However, bigger moves should not be expected till Nifty closes above 9532 levels, suggest experts.
Stay tuned with bonazcapital.com to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
GST Council fixes rates for services
The GST council fixed rates for a host of services, placing them under four slabs—5,12,18 and 28 percent—as India’s plans for a countrywide goods and services tax (GST) entered the final leg.
Under GST, the supply of food and drinks in outdoor catering attract a tax rate of 18 percent, while entry into IPL matches and race courses will attract a 28 percent GST.
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500 and above, but less than Rs 5000 per room per day, will also attract a GST rate of 18 percent.
Wall Street ends higher
The US stock market closed with a positive bias, but closed near day’s low on Friday after two new reports related to a federal investigation into possible coordination between Russia and Trump’s election campaign.
Investors have been closely following events in Washington as they worry whether Trump will be able to fulfill campaign promises for fiscal stimulus and tax reform. Many investors saw the policy promises as a key reason for the post-election rally, said a Reuters report.
The Dow Jones Industrial Average was up 141.82 points, or 0.69 percent, to 20,804.84, the S&P 500 had gained 16.01 points, or 0.68 percent, to 2,381.73 and the Nasdaq Composite had added 28.57 points, or 0.47 percent, to 6,083.70.
The Nifty futures on the Singapore Stock Exchange were trading 32 points higher at 9,486 indicating a positive opening for the domestic market.
US, Saudi firms sign tens of billions of dollars of deals
US and Saudi Arabian companies signed business deals worth tens of billions of dollars on Saturday during a visit by US President Donald Trump.
National oil firm Saudi Aramco said it signed $50 billion of agreements with U.S. firms. Energy minister Khalid al-Falih said deals involving all companies totaled over $200 billion, many of them designed to produce things in Saudi Arabia that had previously been imported, said a Reuters report.
North Korea missile lands outside Japan’s exclusive economic zone
North Korea fired a ballistic missile into waters off its east coast on Sunday, South Korea and Japan said. The missile flew about 500 km (310 miles), said a Reuters report.
The missile was launched at 0759 GMT from a location near Pukchang, 60 km (36 miles) North East of the capital Pyongyang, an area where North Korea attempted to test-launch another missile last month but failed, South Korea’s Office of Joint Chiefs of Staff said in a statement.
Dollar saw worst week in over a year
The US dollar fell on Friday, adding to its worst week since April 2016 against a basket of major currencies, said a report.
The dollar index, which tracks the greenback against a basket of six world currencies, has shed more than 2 percent this week. On Friday, it fell 0.75 percent, hitting its lowest since Nov. 9, the day after the US election.
Rupee logs first gain in 4 days on Friday
The domestic currency revisited the 65-level after about one-and-a-half month on Friday. The rupee last touched 65.06 level on April 6, 2017.
It opened higher at 64.78 a dollar as against the Thursday’s closing level of 64.84 at the forex market and dropped further to 65.02 before ending at 64.64, a gain of 20 paise or 0.31 per cent.
Govt nod to mega naval project
In a major move to ramp up naval strength, the Defence Ministry has given an in-principle approval for construction of four amphibious assault ships, also called the Landing Platform Docks (LPD), in the private sector at a cost of over Rs 20,000 crore.
It will be the largest ever naval project involving the private sector and the ships will be the biggest to be built in India after the under-construction aircraft carrier INS vikrant.
Stocks in F&O Ban today
Almost 13 F&O stocks are banned for trading on the NSE’s on 22 May which includes names like Bharat Financial, CAPF, CEAT, CESC, HDIL, IDBI, Infibeam Incorporation, Jindal Steel, Jain Irrigation Systems, JP Associates, JSW Energy, Oriental Bank of Commerce, TV18 Broadcast.
106 companies will be report Q4 results today
More than 100 companies will be reporting their results for the quarter ended March 31 on Monday which includes names like Adhunik Industries, Bank of India, CCL Products, EIL, GAIL India, Godrej Industries, PTC India, Venky’s India, SRF among others.