Things to know before trading on 12th June


Indian markets stayed with positive territory yesterday tracking global sentiment as Asia rose tracking strong BoP number from the China. However some gains were covered during the later part of the day with lack of buying interest at higher levels.

The NIFTY index rose towards 12,000 mark but faced stiff resistance to drop towards 11960 and closed near 11960 forming another indecisive close.

In sectoral indices, excluding FMCG and Pharma most of the indices closed positive. PSU banks rose 1.69% on short covering while Metals and Media advanced over 1.3%. In broader market, NIFTY 500 added 0.4% with a positive breadth while mid cap and small cap gained 0.68% and 0.10% respectively.

In stock specific developments, RBI imposed Rs 11.2 lakh penalty on Yes bank for breach of prepaid payment norms and Non-Executive Independent Director Lt General Mukesh Sabharwal resigned. The Bank also may face rating downgrade from Moody’s. DHFL paid Rs 962 crore interest due on NCDs on June 4 in full which is a slight positive sign as of now. Voltas CFO Abhijit Gajendragadkar resigned and deputy MD Anil George to take over as CFO.

In global market, Dow corrected later part of the day to close 14 points lower at 26048. Stock indices in the US started the session firmly higher on reports that China was planning a set of economic stimulus, but benchmark indices lost steam at the later part of the day. On latest developments, China’s foreign ministry said that they would respond firmly if the U.S. insisted on escalating its standoff with China.

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The UK FTSE index rose 0.3% while the German DAX advanced over 0.9%. On data front, UK April average weekly earnings read at 3.1% against expected a 3.0% rise. In US, Producer prices excluding food, energy and trade services rose 0.4% last month, matching April’s gain, data reported.

In Asian market today, market traded cautious after the US president Donald trump said that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five “major points”. The Japanese NIKKEI is up marginal 0.09% while the Hang Seng is down over 1.5%, at the time of writing.

The SGX NIFTY is down 0.21% at the time of writing and pointing a flat to lower opening today. The NIFTY index has a support at 11900 and then at 11870 levels. A break below 11870 may bring bearish momentum. Resistance is seen at 11990-95 range.

In Commodities, gold futures advanced in Asia with the COMEX gold was up 0.43% during the electronic trading in Asia. Crude oil continued to trade down after slide in US and traded almost 1.5% lower in Asia. The WTI quoted at $52.39 and Brent traded at $61.34, at the time of writing.

Today the Indian indices may trade sideways to lower and Sell on rise is an ideal strategy for intraday for Bank Nifty and NIFTY.

Disclaimer: represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose

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