What will sway your market in today’s session?

Good Morning ETMarkets readers. This is Saloni Goel, and I am here with the morning briefing of news, views and cues before you start your day on Dalal Street.

After Tuesday’s sharp correction, the Nifty50 finds itself just 50 points away from a crucial support at 9,750. If the index breaks this level decisively, it could extend Tuesday’s correction to 9,700 and possibly even lower. The opening level on Wednesday would be extremely critical. Should Nifty open below the 50-DMA, it will see the market test this key mark. In all likelihood, there could be a modestly positive start.

Analysts say the 9,815 and 9,890 levels should play out as major resistance for the Nifty50 on Wednesday, while supports should come in much lower at 9,750 and 9,685 levels.

Asian markets were mixed in early trade amid concerns over the geopolitical tensions in the Korean Peninsula. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade. South Korea’s Kospi share index and Australian shares inched up 0.1 per cent. Japan’s Nikkei rose 0.5 per cent as the yen weakened.

US stocks slipped in overnight trade. The Dow Jones Industrial Average index gained 56.97 points, or 0.26 per cent, to close at 21,865, while the S&P500 advanced 2.06 points, or 0.08 per cent, to 2,446 and the Nasdaq added 18.87 points, or 0.3 per cent, to 6,301.

Early this morning, Nifty50 futures on the Singapore Stock Exchange were trading 56.50 points, higher at 9,844, indicating a positive opening for the domestic market.

In Tuesday’s session, the Nifty50 formed a Bearish Belt Hold candle, signalling weakness ahead. The index now needs to hold above 9,740 level to avoid any sharp correction. Analysts say the recent high of 9,948 might prove to be the short-term top for the index in near future.

The rupee weakened against the US dollar on Tuesday tracking losses in the global markets after North Korea fired a ballistic missile over Japan. It closed at 64.02 a dollar, down 0.16 per cent from Monday’s close of 63.91.

Oil prices slid on Wednesday as refinery shutdowns in the wake of Hurricane Harvey cut US demand for crude, the most important feedstock for the petroleum industry. US WTI crude futures were at $46.35 per barrel, down 9 cents from their last close, while Brent crude futures slipped 7 cents to $51.93 a barrel.
The domestic market is witnessing significant outflows of foreign portfolio investors money this month, which stood at Rs 15,000 crore so far in August, making it the first month of outflows since April and the highest by quantum since November last year. This has happened largely due to geopolitical tensions and disappointing corporate earnings season.

The first report card on GST appears to be impressive. Finance Minister Arun Jaitley on Tuesday said goods and services tax collections exceeded estimates in the first month of the landmark levy’s rollout despite a significant number of assessees not having filed returns yet.

Watch out the NTPC counter, which witnessed significant weakness on Tuesday, even as the offer for sale on the India’s biggest power producer was subscribed 1.4 times by non-retail investors on the first day. The government is selling a 5 per cent stake, or 41.22 crore shares, at a floor price of Rs 168 each.

Reliance Capital is another stock to watch out for. The BSE on Tuesday said it will drop the stock from 11 S&P BSE indices with effect from September 5 as the company is demerging its real estate lending business.

Stocks of debt-ridden companies will be in focus amid reports that RBI is readying another list of some 50 dud account to refer to the bankruptcy court, if these companies have been unable to find a resolution in about three months.

Also check out some of top stock recommendations for the day from Analysts look very positive on stocks like Oil India, Dalmia Bharat, DHFL.

Lastly, a quick look at some of the interesting headlines from the print edition of ETMarkets.

Equities have regained favour and replaced debt with many high net worth individuals (HNIs) estimated to have shifted at least a quarter of their incremental debt allocation to their equities portfolio, say advisors. An equities rally and low interest rates are triggering such bets amid exuberance over better economic prospects, they said.

State-owned Life Insurance Corporation of India will seek a briefing from the new management of Infosys on its strategy under new chairman Nandan Nilekani following the acrimonious departure of Vishal Sikka as CEO and other changes at the company .

Stable marketing profits due to daily revisions of motor fuels and superior refining margins from new-age Kochi refinery should help Bharat Petroleum Corp (BPCL) maintain its premium valuation and narrow the gap with regional players. BPCL’s stock is trading at eight times its FY18 EV/EBITDA, a premium of 23% over its long-term average but at an 11% discount to regional peers. The Street has thus far been giving BPCL EVEBITDA multiples of 56 times, but the valuation would be revised upward because of waning downside risks to earnings.

We would leave you with that much for now.

Do log on to through the day for continuous updates on every development in the financial markets.

Have a good trading day ahead!

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