What changed for market while you were sleeping: | INA000003197
The Nifty50 is likely to open flat on Wednesday tracking muted handover from Wall Street. The Nifty50 closed 37 points lower on Tuesday at 9,637 and made a bearish engulfing pattern on charts.
A bearish engulfing pattern consists of two candlestick patterns. One candle is usually a small white candlestick which is followed by a large black candlestick pattern that engulfs the short one.
A bearish candlestick pattern suggests that bears regained control over market after rangebound activity seen in the last few trading session. This pattern is usually seen as the end of an uptrend or an intermediate top, but as long as 5-DEMA, 13-DEMA holds, investors need not worry about intraday gyrations.
However, if the Nifty slips below 9,600 on Wednesday post the Reserve Bank of India’s policy meet, bears will regain control over D-Street.
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
Outcome of RBI’s MPC meet
The Reserve Bank of India (RBI) will announce their monetary policy later today.
A poll by CNBC-TV18 showed that 100 percent of the respondents that include top brokers and economists do not expect any action from the RBI on the repo rate front in the policy.
They neither see any move on the cash reserve ratio (CRR) because the system is flushed with liquidity. The expect RBI to be in a wait and watch mode. 60 percent of respondents do not expect a rate cut throughout this calendar
Wall Street ends lower ahead of UK Vote
US markets closed in red on Tuesday as traders preferred to remain on the sidelines ahead of major political and economic event from the UK which is scheduled for Thursday.
Britain’s general election will be in focus as it maps its exit from the European Union, the European Central Bank’s policy meeting and former FBI Director James Comey’s testimony before a Senate panel could all affect investor sentiment said a report.
The Dow Jones Industrial Average fell 47.81 points, or 0.23 percent, to 21,136.23, the S&P 500 lost 6.77 points, or 0.28 percent, to 2,429.33 and the Nasdaq Composite dropped 20.63 points, or 0.33 percent, to 6,275.06.the economy, according to sources.
The Nifty50 futures on the Singapore Stock Exchange were trading 2 points higher at 9,678 indicating a flat opening for the domestic market.
IMD raises monsoon forecast to 98%
The India Meteorological Department (IMD) has upgraded monsoon forecast to 98 percent for this year from 96 percent earlier. Rainfall during the June-September period monsoon season will be normal this year, Met department said on Tuesday.
All India rainfall for July is seen at 96 percent of LPA while August south-west monsoon rains are seen at 99 percent of LPA.
Rainfall for central India and South Peninsula is seen at 100 percent and 99 percent, respectively of the long-average period or 50-year average period (LPA) for the June-September period. For North-East, rainfall will be near 96 percent of the long-average period.
PM Modi likely to see reshuffle Cabinet
Amid the preparation for 2019 Lok Sabha election, there is a speculation that Prime Minister Narendra Modi’s cabinet may be reshuffled to fill up vacancies and sharpen the ministries, said a Bonaz Capital report.
The buzz about a reshuffle started after Defence Minister Manohar Parrikar moved to Goa following his victory in the state this year. For the time being, Finance Minister Arun Jaitley is overseeing Defence.
With an eye on the 2019 elections, a reshuffle would perhaps take place to better implement government programs and policies. Upcoming assembly polls in key states like Rajasthan, Madhya Pradesh, and Chattisgarh may also influence the cabinet shuffle.
CCEA likely to approve IREDA IPO on Wednesday
The Cabinet Committee on Economic Affairs is likely to approve the initial public offer of state-run Indian Renewable Energy Development Agency (IREDA), a move aimed at mobilising more funds for clean energy.
“The initial public offer proposal of IREDA is listed for the meeting of the Cabinet Cabinet Committee on Economic Affairs (CCEA) scheduled on Wednesday,” a source told PTI.
The source said that under the listing proposal, the IREDA would issue fresh 13.90 crore shares, which would increase the paid-up share capital of the company from Rs 784 crore to Rs 923 crore. At present, the company has 78.46 crore equity shares.
Rupee ends marginally lower against USD
The Indian rupee on Tuesday closed at 64.43 to the dollar, 6 paise weaker from its previous close of 64.37, as traders remained cautious ahead of the monetary policy review scheduled Wednesday.
The market expects status quo from the monetary policy committee and expects it to maintain a neutral stance on liquidity. However, some market participants said that there is some chance of a few dovish comments from the Reserve Bank of India.
Oil slips below $50 a barrel
Oil prices slipped further below $50 a barrel on Tuesday on concerns that a diplomatic rift between Qatar and several Arab states including Saudi Arabia could undermine efforts by OPEC to tighten the market, said a report.
Kuwait Oil Minister Essam al-Marzouq said Qatar was committed to an OPEC agreement to restrict supply, telling Kuwaiti state news agency KUNA Doha was complying with its obligations, it said.
Benchmark Brent crude oil was 20 cents a barrel lower at $49.27 while US light crude was down 20 cents at $47.20.
Investors cautious as Dollar weakens vs yen
The dollar weakened to a more than six-week low against the yen, dipping below a key technical level as Treasury debt yields slipped on increased caution ahead of a trio of potentially market moving events on Thursday, said a Reuters report.
The dollar was down 0.92 percent against the yen at 109.43 yen, having broken below its 200-day moving average to touch 109.23 yen, its lowest since April 21.
7 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 DLF, GMR Infrastructure, Indiabulls Real Estate, Infibeam, Jaiprakash Associates, Reliance Communications, and Reliance Capital.