Weakness in Asian markets due to the US-China trade spat and a breakdown on Niftys technical charts signal more pain for the domestic market. F&O expiry during in the day may only add to volatility.
Let's check out what all might matter to Dalal Street on Thursday:
Singapore trading sets stage for negative start
Nifty futures on the Singapore Stock Exchange were trading 28.50 points, or 0.27 per cent, lower at 10,646.50, indicating a negative start for the Nifty50.
Tech view: Nifty50 forms bullish candle
The Nifty50 broke a crucial support at 10,700 level on Wednesday and ended up forming a Bearish Belt Hold pattern on the daily chart. The index violated the support at the 20- and 50-day SMAs, signalling a negative bias, as traders braced for F&O expiry-induced volatility on Thursday. Aditya Agarwala, Technical Analyst at YES Securities said that any trade below 10,650 will trigger a breakdown from a trendline support, which can drag the index further lower.
F&O rollovers at 59%
The market-wide rollovers stood at 59 per cent till Wednesday in line with the average rollovers seen in the last three series. Nifty rollovers stood at 42 per cent, which were lower than average rollovers of 47 per cent seen in the last three series. The June F&O series will expire on Thursday.
One-third of EM m-cap in bear territory
Factors such as concerns over trade war, rising US bond yields, and uncertainty over economic growth are taking toll on the emerging markets (EMs). They have lost nearly $ 2 trillion in market capitalisation since the beginning of the year. The combined market capitalisation of the EMs under bear grip is around $8.3 trillion. This means nearly one-third of the total EM market cap of $24.2 trillion is in the bear phase.
Asian shares hit 9-month low
Asian stocks slumped to nine-month lows on Thursday on growing worries the US administrations approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in US technology firms, Reuters reported. MSCIs broadest index of Asia-Pacific shares outside Japan fell 0.25 per cent to a nine-month low in early trade while Japans Nikkei shed 0.30 per cent.
US stocks settle lower
US stocks fell on Wednesday on renewed uncertainty regarding the US stance on Chinese investments in American technology companies, reversing gains earlier in the session, Reuters reported. The Dow Jones Industrial Average .index declined 165.52 points, or 0.68 per cent, to 24,117.59. The S&P500 index dropped 23.43 points, or 0.86 per cent, to 2,699.63. The Nasdaq Composite index lost 116.54 points, or 1.54 per cent, to 7,445.09.
Rupee hits 19-month low
The rupee plunged to a 19-month low on Wednesday as the yuan fell, crude oil rose and US president Donald Trump pressed countries, including India, to stop oil imports from Iran. The local unit lost more than half a percent to close at 68.63 against the dollar mirroring weakness in other emerging market currencies.
Gold prices may still rise
Bullion will climb to $1,320 an ounce by the end of the year, said currency strategist Luc Luyet, which compares with about $1,256 on Wednesday. While trade tensions havent yet provided much support, an escalation combined with a slide in the dollar could lift prices, Geneva-based Luyet said, Bloomberg reported.
Rate rise may thwart Fed plan
The rise of a key US overnight interest rate has raised speculation that higher bank borrowing costs will force the Federal Reserve to stop shrinking its balance sheet sooner than planned, Reuters reported. The federal funds interest rate, or what banks charge each other to borrow excess reserves overnight, crept up last week after the U.S. central bank lowered what it pays banks on excess reserves, the report added.
Varroc IPO subscribed fully
The initial public offering of Varroc Engineering was fully subscribed on the second day of the bidding process on Wednesday. Till 5:00 pm, total bids received stood at 1,44,79,575 shares, which was 1.02 times of the total issue size of 1,41,85,212 shares, NSE data showed.
FPIs buy Rs 67 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 67 crore worth of domestic stocks on Wednesday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 84 crore, data suggested.
[contf] [contfnew] 
ET Markets
[contfnewc] [contfnewc]
