The Nifty is likely to open higher
on Thursday, tracking positive handover from Wall Street. The Nifty closed 30
points higher at 9,816 on Wednesday.
The index formed a small bullish candle and negated negative
pattern of shooting star formed in the previous session.
The index moved in the trading range of the previous session,
but the bulls managed to save the day for Nifty. Traders can retain their long
positions with a stop loss below 9,700.
Despite moving in a narrow range of 37 points, Wednesday’s price
action in Nifty should certainly give a sigh of relief to the bulls as there
was no follow through to the weakness exhibited around 9800 levels.
Dow sets
record-high close
The US stocks ended higher with Dow hitting a fresh record high
close following Federal Reserve Chair Janet Yellen's congressional testimony to
gradually raise interest rates, said a Reuters report.
Yellen's speech was a nod to Wall Street as the Fed signalled it
will gradually tighten policy and gradually unwind its massive balance sheet,
it said. Investors cheered Yellen's dovish tone, alleviating some concerns over
the recent dip in inflation.
The Dow Jones Industrial Average rose 123.07 points, or 0.57 percent,
to close at 21,532.14, a record high. The Dow also hit an intraday record. The
S&P 500 gained 17.72 points, or 0.73 percent, to 2,443.25 and the Nasdaq
Composite added 67.87 points, or 1.10 percent, to 6,261.17.
SGX Nifty
The Nifty futures on the Singapore Stock Exchange were trading
46 points higher at 9,882 indicating a positive opening for the domestic
market.
TCS Q1 results:
Don’t expect any surprises from Tata Consultancy Services Ltd
(TCS) which is scheduled to report its results for the quarter ended June 30
post market hours on Thursday.
According to an average of estimates of analysts polled by
CNBC-TV18, profit is likely to fall by 6.2 percent sequentially to Rs6,195
crore and revenue may decline by 0.2 percent to Rs 29,580 crores compared with
previous quarter.
Investors cheer
dovish Fed
The US economy is healthy enough for the Fed to raise rates, but
she also noted that given current estimates, the federal funds rate "would
not have to rise all that much further" to reach a neutral level that
neither encourages nor discourages economic activity, said a Reuters report.
The Fed still feels the economy needs loose, or accommodative,
monetary policy, so a lower neutral rate means the Fed may feel compelled to
slow the pace of rate hikes down the road, it said.
Dollar slips vs
Yen
The dollar eased against the yen, after Federal Reserve Chair
Janet Yellen said interest rates hikes would be gradual and that the U.S.
central bank may not be able to raise rates by "all that much", said
a Reuters report.
The dollar index, which tracks the greenback against six major
rivals, was up 0.08 percent to 95.748, after falling to 95.511, its lowest
since June 30.
Against the yen, the greenback was 0.64 percent lower at 113.19
yen following a decline in short-term US interest rates after Yellen's
testimony.
Oil rises as US
crude stocks drop
Oil futures rose as a report showing hefty drawdowns in U.S.
crude inventories was offset by data pointing to lackluster gasoline demand,
said a Reuters report.
U.S. crude inventories fell 7.6 million barrels last week, its
biggest weekly plunge in 10 months, the U.S. Energy Information Administration
(EIA) said.
Brent crude futures rose 22 cents, or 0.5 percent, to settle at
$47.74 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 45
cents, or 1 percent, to settle at $45.49.
Trump says son is
'innocent'
The US President Donald Trump on Wednesday defended his eldest
son as "innocent" following emails that showed Donald Trump Jr.
welcomed Russian help against his father's rival in the 2016 presidential
election, said a Reuters report.
"He was open, transparent and innocent. This is the
greatest Witch Hunt in political history. Sad!" Trump wrote on Twitter.
June retail
inflation at record low
India’s retail inflation hit a record low of 1.54 percent in
June, lowest since 1999, raising hopes of an interest rate cut, with the
Finance Ministry obliquely nudging the central bank to reduce lending rates in
the monetary policy next month.
Retail inflation, measured by Consumer Price Index (CPI)
remained low in May touching 2.18 percent and 5.77 percent in June last year,
owing to a sustained dip in food prices. Low inflation levels can indicate poor
demand and weak economic activity.
India's factory
output falls to 1.7% in May
India’s factory output witnessed a tepid growth of 1.7 percent
in May from 3.1 percent in April, mainly due to subdued mining and
manufacturing output.
Factory output measured by the index of industrial production
(IIP) is the closest approximation for measuring economic activity in the
country’s business landscape.
Rupee recovers 5
paise against dollar
The rupee on Wednesday recovered by 5 paise to close at 64.54
against the US currency on fresh dollar selling by banks and exporters.
A bearish greenback tone overseas largely aided the rupee
recovery. The rupee had fallen by 6 paise on Tuesday. A spectacular bull-run in
local stock markets along with robust capital flows further brightened the
rupee sentiment, forex dealers said.
OPEC sees lower
demand for its oil in 2018
World demand for OPEC's crude will decline next year as U.S.
shale producers and other rivals pump more, OPEC said on Wednesday.
In the report, OPEC said its oil output rose by 393,000 bpd in
June to 32.611 million BPD led by a rebound Nigeria and Libya - which are
exempt from the supply cut, plus extra barrels from Saudi Arabia and Iraq.
4 stocks under
ban period on NSE
Security in ban period for the next trade date under the F&O
segment includes companies in which the security has crossed 95% of the
market-wide position limit.
Securities which are banned for trading today include names like
HDIL, Indiabulls Real Estate, Jaiprakash Associates, and JSW Energy.
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