A few cues from the market in India and abroad that could help you with your trade today.
The Nifty50 managed to settle the volatile expiry session as well as February series marginally lower on Thursday. Weak global cues weighed on the market sentiment, but hope of unlikely escalation of geopolitical tensions between India and Pakistan limited downside.
The index formed bullish candle which resembles a 'Bearish Belt Hold' kind of pattern on the daily charts.
A 'Bearish Belt Hold' pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.
The Nifty50 opened sharply higher at 10,865.70, which was also an intraday high, but immediately fell and remained rangebound between 10,785 to 10,850 zones for rest of the February settlement day. It closed 14.20 points lower at 10,792.50 on February 28 and lost 0.4 percent in February series.
Experts said VIX has to cool down below 16-15 zones to get the smooth ride in the market else restricted upside could continue to keep pressure on themarket.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
US stocks edge downward as Wall Street takes a pause
Wall Street’s main indexes fell slightly on Thursday as support from better-than-feared US GDP data was countered by concerns about earnings and US-China trade relations.
The Dow Jones Industrial Average fell 69.16 points, or 0.27 percent, to 25,916, the S&P 500 lost 7.89 points, or 0.28 percent, to 2,784.49 and the Nasdaq Composite dropped 21.98 points, or 0.29 percent, to 7,532.53.
Asian shares trade slightly higher
Asian shares inched higher on Friday with broader gains capped by investor caution as concerns about China’s economy and global trade weighed onsentiment while stronger-than-expected US GDP data pushed the dollar up.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent in early trade. Japan’s Nikkei 225 gained 0.8 percent, helped by the weaker yen, while Australian shares added 0.6. percent.
SGX Nifty
Trends on SGX Nifty indicate a flat positive opening for the broader index in India, a rise of 4 points or 0.04 percent. Nifty futures were trading around 10,874-level on the Singaporean Exchange.
Core sector growth at 1.8% in January
India's eight core industries -- coal, steel, natural gas, cement, crude oil, fertilisers, refinery products and electricity -- grew at 1.8 percent in January versus 2.6 percent month-on-month (MoM).
The growth for April to January period was at 4.5 percent as opposed to 4.1 percent year-on-year (YoY). The steel output for January stood at 8.2 percent, as compared to 12.9 percent last month. Output of fertilisers in January stood at 10.5 percent as compared to -2.4 percent MoM, and the output of refinery products stood at -2.6 percent, as compared to -4.8 percent MoM.
On the energy front, the coal output for January stood at 1.7 percent as compared to 1.1 percent MoM, with crude oil output at unchanged at -4.3 percent MoM, and natural gas output at 6.2 percent as compared to 4.2 percent MoM.
'Muted' inflation gives room for wages to rise: Fed's Powell
A rise in productivity last year gives more room for wages to grow without the risk of higher inflation, Federal Reserve Chairman Jerome Powell said on Thursday, offering another reason why the US central bank can hold off on further rate increases.
“Signs of upward pressure on inflation appear muted despite the strong labor market,” with unemployment at 4 percent and wage increases picking up of late, Powell said in remarks prepared for delivery at the Citizens Budget Commission in New York.
Rupee recoups 52 paise to end at 70.72 per dollar
The rupee rebounded by 52 paise to close at 70.72 against the US dollar Thursday as investors wagered on de-escalation of tensions between India and Pakistan. A weaker dollar and slipping oil prices also propped up the local unit, analysts said.
In a surprise announcement, Pakistan Prime Minster Imran Khan told a joint session of Parliament that IAF's captured pilot Wing Commander Abhinandan Varthaman will be released on Friday as a gesture of peace.
At the Interbank Foreign Exchange (forex) market, the domestic unit opened slightly up at 71.22. It rose to an intra-day high of 70.70, before finally ending at 70.72, showing a gain of 52 paise.
Oil rises on OPEC supply cuts, but surging US output and economic slowdown weigh
Oil prices rose on Friday as markets tightened amid output cuts by producer club OPEC, but surging US supply and a global economic slowdown prevented crude from climbing further.
US West Texas Intermediate (WTI) crude oil futures were at $57.45 per barrel at 0116 GMT, up 23 cents, or 0.4 percent, from their last settlement. International Brent crude futures were at $66.55 per barrel, up 24 cents, or 0.4 percent.
US economy grew 2.9% in 2018, highest in 13 years
The US economy kicked into high gear last year, recording the strongest growth in 13 years in the wake of sweeping tax cuts and fiscal stimulus, government statistics showed Friday.
But the world's largest economy was slowing toward the end of 2018, suggesting the boom had begun to fade, according to the Commerce Department report. GDP expanded by 2.9 percent in 2018, up from 2.2 percent the year before, approaching the target set by President Donald Trump.
RBI, Bank of Japan completes signing of $75 bn currency swap pact
The RBI and Bank of Japan have completed signing of the bilateral currency swap agreement for $75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country.
The Bilateral Swap Arrangement (BSA) was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on October 29, 2018.
"This BSA provides for India to access 75 billion in US dollars whereas the earlier BSA had provided for $50 billion. The agreement for the BSA has become effective from today i.e. February 28, 2019," the finance ministry said in a statement.
Dollar near 10-week high vs. yen on upbeat US GDP
The dollar hovered near a 10-week high against the yen on Friday, thanks to a surge in Treasury yields after US gross domestic product data toppedexpectations. The greenback was a touch higher at 111.445 yen and within striking distance of 111.495, its strongest level since Dec. 20 brushed overnight.
The dollar index against a basket of six major currencies stood at 96.222 after grinding out a 0.15 percent gain on Thursday, when it pulled back from a three-week trough of 95.824.
MFs, PMS to be get to play in commodity derivatives soon: Sebi
Commodity markets regulator Sebi Thursday said mutual funds and portfolio management services (PMS) will be allowed into commodity derivatives soon.
"We will soon allow portfolio management services and mutual funds in commodity derivatives. This is going to open the gateway for several other products like ETFs among others," Sebi whole-time member SK Mohanty told a Ficci event.
Mohanty noted that the presence of financial institutions in commodity derivatives will not only provide the investing public more avenues for safe financial investments through commodities, but also make the commodity derivatives market more robust and inclusive by providing liquidity and rich information based on world-class market research capabilities.
RBI approves amalgamation of DBS Bank
The Reserve Bank of India on Thursday said it has approved the amalgamation of 'DBS Bank, India' with 'DBS Bank India', the entity which has been granted permission to operate as a wholly owned subsidiary (WOS) of the Singaporean lender.
It can be noted that DBS used to operate in the 'branch model' and is among the first foreign lenders to come forward and operate as a WOS. In a pressrelease, the RBI said the scheme of amalgamation between the two entities has been sanctioned under the provisions of the Banking Regulation Act, 1949.
With inputs from Reuters & other agencies
