The market is likely to take cues from the negative sentiment across the globe. Asian and US markets have shown downward trends, while the Nifty futures on Singaporean Exchange also hint at a lower opening.
The market was in a bear trap on October 18 after consistent upmove in previous three consecutive trading sessions. The Nifty started the day with a 100-point rally but wiped out all gains in afternoon trade to close below the 10,500 levels and formed ‘Bearish Engulfing’ pattern on the daily candlestick charts.
A Bearish Engulfing Pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle.
The Nifty index opened gap up with 104 points gains at 10,688.70 to hit an intraday high of 10,710.15 but failed to hold its gains and corrected sharply in afternoon trade to hit day’s low of 10,436.45. It witnessed selling pressure at its resistance of 10,650-10,700 zones and corrected by 257 points from its intraday high.
The index closed 131.80 points or 1.25 percent lower to 10,453.
Equity market on Thursday was shut on account of Dussehra festival.
Here are a few cues that could help you with your trade today.
News agency Reuters reported that stocks in Asia fell as global sentiment soured on issues ranging from trade worries, Italy’s 2019 budget, higher US interest rates and growth concerns in China that led to a slump in Chinese shares in the previous session. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4 percent weaker following losses on Wall Street overnight.
US stocks fell more than 1 percent on Thursday as the European Commission issued a warning regarding Italy’s budget and concerns mounted over the possibility of strained relations between the United States and Saudi Arabia, further denting investors’ appetite for risk amid global trade tensions and rising interest rates. The benchmark S&P 500 index closed just above its 200-day moving average, a key indicator of long-term price trends.
Negative global cues have weighed on Nifty futures on the Singaporean exchange as well. The SGX Nifty is trading over 70 points lower, hinting at a lower start on Friday morning here and is likely to test 10,300-mark as well.
Oil prices nudged higher on Friday but were set for a second weekly drop amid higher US crude inventories, an ongoing Sino-US trade war and concerns over the death of a prominent Saudi journalist, according to a Reuters report. For the week, US crude was down 3.5 percent, while Brent was 1.1 percent lower, putting both on track for a second consecutive weekly decline.
The rupee surrendered all gains and settled 13 paise lower at 73.61 against the US dollar on Wednesday, amid steady capital outflows and strengthening of the American currency, PTI reported. The US dollar strengthened against its rivals ahead of the Federal Reserve’s release of minutes from the September meeting.
Reliance Industries reported a 0.6 percent sequential growth in consolidated profit to Rs 9,516 crore for the quarter ended September 2018. Good petrochemical and telecom businesses offset lower other income and weak refining business. Consolidated revenue during the quarter grew by 11.3 percent to Rs 1.43 lakh crore driven by growth across segments QoQ. Profit on year increased 17.35 percent and revenue jumped 56.66 percent in second quarter.
8 BSE companies to declare results today
On the earnings front, companies such as SBI Life, UltraTech Cement and ICICI Securities are likely to be in focus as they will be declaring their earnings for the September quarter.
Trump administration to propose major changes in H-1B visas
The Trump administration has said it is coming out with new proposals to not only revise the definition of specialty occupations under H-1B visas, but also the definition of employment under this foreign work visa category which is popular among Indian companies, according to a report by PTI.
Such a move, which is part of the Unified Fall Agenda of the Trump administration will have a detrimental impact on the functioning of Indian IT companies in the US and also small and medium-sized contractual companies in the IT sector, which are mostly owned by Indian Americans.
CVC submits detailed report on India’s top 100 banking frauds to RBI
Inflated valuation of goods, fudged bills, shell companies for diversion of funds are the common threads that run through India’s top 100 banking frauds analysed by the Central Vigilance Commission.
The country’s top anti-corruption watchdog has indicted the public-sector banks, already reeling under a mountain of Rs 10 lakh crore of unpaid debts, for failing to check the credentials of loan-seekers and relying too much on the third party to do the job.
The report, a copy of which is with moneycontrol.com, was submitted on October 15 and has suggestions for the Reserve Bank of India for improved checks and balances.
Govt considers banning unfit independent directors from holding board position for five years: Report
According to a report by The Economic Times, the government is considering a purge of company board rooms to remove independent directors who haven’t played the oversight role required of them, the latest instance being the debacle at Infrastructure Leasing & Financial Services (IL&FS).
The recommendation emerged from an internal review of the Companies Act by the ministry of corporate affairs, a senior official said.