Bank Nifty rangebound, directionless: Here’s what will help banking index breakout; US debt, RBI key to watch

 

Bank Nifty may witness a significant breakout if impending US debt ceiling negotiations and conjectures

around a pause in US Federal Reserve’s interest rate adjustments are resolved.

Bank Nifty, despite multiple attempts in the last one month, has failed to cross its all-time high of 44,151.80 so far. Since the last few sessions, it has remained range-bound and directionless, making investors anxious as the monthly derivatives expiry comes closer. While the fall of major banks in the US and Europe has capped the Bank Nifty’s growth, analysts believe that the US debt ceiling talks will further affect the global markets and a failure to reach a resolution will have catastrophic consequences on the global economy. Meanwhile, if Bank Nifty manages to surpass 44152-44200 levels then it may rally towards 44500, analysts said.

Bank Nifty to remain directionless until 43446-44095 levels are taken out

Bank Nifty is trading in a narrow range of 43446-44095 since the past five trading sessions. And unless these levels are taken out, the index is directionless, Om Mehra, Equity Research Analyst at Choice Broking said. Prashanth Tapse, Senior VP (Research), Mehta Equities believes that despite unfavourable global cues the index has been rising and the positive catalyst lies in the net buying of shares by both FIIs and DIIs at Dalal Street. “Bank Nifty’s breakthrough at 44153 could propel it towards the psychological 45000 mark,” Prashanth Tapse said.

When will Bank Nifty break the current directionless range?

“Bank Nifty could experience a significant breakout if impending debt ceiling negotiations and conjectures around a pause in Federal interest rate adjustments are resolved, either through a conclusion to the debt ceiling talks or a decision by the Federal Reserve to hold interest rates steady,” said Sonam Srivastava- Founder at Wright Research. Bank Nifty’s immediate support and resistance levels, according to her, are placed at 43871-43798 and 44049-44154, respectively.

US debt ceiling impasse continues to affect Nifty, Bank Nifty

“The US debt ceiling impasse continues to affect markets. Since failure to reach a resolution will have catastrophic consequences for the global economy and markets, a resolution of the crisis at the eleventh hour is the most likely scenario. But markets will be on tenterhooks till then. A global risk-on and rally is the most likely scenario after the resolution of the impasse,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. According to him the declining inflation and a possible rate cut by the RBI by the end of 2023 are clear positives for the market.

Stability in Bank Nifty heavyweight stocks: ICICI Bank, Axis Bank, IndusInd Bank, HDFC Bank

“Bank Nifty individual heavyweight components remain stable with the likes of ICICI Bank, Axis Bank and IndusInd Bank approaching fresh breakout levels. On the other hand, HDFC Bank is holding its immediate level quite strongly. This implies that the index is gearing up for a fresh breakout and once it gives a close above 44200 levels, it can witness a move towards 45000 swiftly,” said Gaurav Bissa, VP, InCred Equities.

Bank Nifty expected to rally towards 44500-45000 if it breaches crucial zone of 44152-44200

Based on technicals and options statistics 44152 and 44200 will be the most crucial zone to surpass. Above that it would rally towards 44500 and in the best scenario 45000, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. He believes that as the index is approaching monthly expiry it is mandatory to surpass the above crucial levels, till then it will remain sluggish and range bond. Supports exist at 43700 and 43300. Based on the performance of Bank Nifty constituents it should cross the level of 44150/44200 in the near term, he added.

RBI MPC decision, GDP data to guide Nifty, Bank Nifty

The Nifty Bank rally has been very subdued as all important Q4FY23 bank results have been factored in along with markets waiting for important events like the US debt ceiling issue, India GDP data and RBI monetary policy decision in the 1st week of June. “Technically, 43380 will remain a strong support on the daily charts. A close above resistance of 44150 could lead to a target of 46111 in the near term,” said A R Ramachandran, Co-founder & Trainer, Tips2trades.

Call writers may panic if Bank Nifty breaks 44100

“Bank Nifty is on the verge of a potential breakout, which would be confirmed if it moves above the resistance level at 44100. Once this resistance is taken out, call writers (option sellers) may start to panic, anticipating further upward movement in the index,” said Kunal Shah, Senior Technical and Derivative analyst at LKP Securities.

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HDFC Bank Rs 2000 deposit, exchange from tomorrow: Here’s what the bank told its customers

 HDFC Bank customers can deposit any number of Rs 2000 banknotes into their accounts from tomorrow (May 23, 2023) till September 30, 2023, Customers can also exchange Rs 2000 with a daily limit of Rs 20000 from tomorrow.

“Your trust and convenience are paramount to us at HDFC Bank. We want to update you on the ₹2000 banknotes issued by the Reserve Bank of India (RBI),” HDFC Bank said in emails sent to its customers. The bank also asked the customers to note the following:

1. Legal Tender Assurance: The Rs 2000 banknote will remain legal tender. You can use it for all your transactions and receive it as a form of payment.
2. Hassle-free Deposits: You can conveniently deposit any quantity of Rs 2000 banknotes into your HDFC Bank account at any branch until September 30, 2023.
3. Easy Exchange: We offer a hassle-free exchange service at any HDFC Bank branch from May’23, 2023 onwards until September 30, 2023, allowing you to get your Rs 2000 banknotes exchanged with a per day limit of Rs. 20,000.

The RBI has decided to withdraw Rs 2000 denomination banknotes from circulation. People having Rs 2000 notes can either deposit them in their bank accounts or exchange them in any bank with other notes of small denominations.

Earlier, the State Bank of India (SBI) said that tenderers of Rs 2000 notes will not be required to fill out a requisition slip. The SBI also said that the submission of any identity proof like PAN or Aadhaar is not required for the exchange of Rs 2000 bank notes at any branch of the public sector bank.

While the RBI is withdrawing Rs 2000 notes from circulation, these high-denomination banknotes will remain legal tender even after September 30, the date by which RBI has urged people to deposit or exchange the Rs 2000 notes.

EPFO higher pension calculation latest news: Here’s how dues will be calculated

EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions.

For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated:

EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions.

For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated:

The Field Office will be calculated the dues after the verification of wage details submitted by the employer (S) and taking care of following in the process, according to EPFO circular dated May 11, 2023.

1. Each member/pensioner’s case will be processed in a separate file, created in the e-office with clear marking of the Application ID (system-generated acknowledgement number for online application for validation/joint option).
2. In the case of exempted establishments, the wage details for the entire period and the matching contribution should be available with the exempted establishments and consistent with the records of the trust.

3. The dues will be calculated in the following manner:

   a. 8.33% of the employer’s share on higher pay (w.e.f 16-11-1995 or the date the pay exceeds the wage ceiling; whichever is later) will be calculated as per records).

   b. 1.16% of employer share on higher pay above Rs 15,000 per month (w.e.f. 01.09.2014) will be calculated as per records towards increased contribution.

   c. All amounts already deposited into the Pension Fund will be deducted from the sum of the above two.

   d. The interest to be charged on dues as calculated above will be the interest earned by the members on their PF accumulations.

   • For un-exempted establishments, the interest will be calculated at the rate declared under Para 60 of EPF Scheme 1952.
   • For exempted establishments, the interest will be calculated at the rate declared under para 60 of EPF Scheme, 1952 or at the rate declared by the Trust of exempted establishment from time to time, whichever is higher, if any.The EPFO is yet to explain how the higher pension will be calculated. It is expected to soon release a separate circular with details of the method of calculation of higher pension

FinMin permits 22 finance cos to undertake Aadhaar-based verification of clients

 

The Finance Ministry has allowed 22 financial companies, including Amazon Pay (India) and Hero FinCorp, to undertake Aadhaar-based authentication of clients. The ministry, through a notification, said these 22 companies, which are already reporting entities under the PMLA, will be able to verify the identity of clients and beneficial owners' details using their Aadhaar numbers.

These 22 financial companies include Godrej Finance, Amazon Pay (India) Pvt Ltd, Aditya Birla Housing Finance,  ..

Read more at:
https://economictimes.indiatimes.com/news/economy/finance/finmin-permits-22-finance-cos-to-undertake-aadhaar-based-verification-of-clients/articleshow/100012383.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

"Accordingly, the CG has notified a list of 22 financial institutions/intermediaries, which are permitted to use Aadhaar authentication to verify the identity of clients/ beneficial owners," Jhunjhunwala said.

The other modes of verification prescribed under the Money Laundering Act include offline verification under the Aadhaar Act, use of a passport and any other officially valid document or modes of identification as may be notified by the central government, and the client has a volu ..

Read more at:
https://economictimes.indiatimes.com/news/economy/finance/finmin-permits-22-finance-cos-to-undertake-aadhaar-based-verification-of-clients/articleshow/100012383.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

IndusInd Bank Q4 Results: PAT jumps 50% YoY to Rs 2,040 cr; dividend declared at Rs 14/share

 

IndusInd Bank's standalone net profit rose 50% to Rs 2,040 crore for the fourth quarter ended March. It was Rs 1,361 crore in the same period last year. The profit beat the estimate of ET Now Poll, which expected the figure to be around Rs 2,000 crore

The board has also recommended a payment of dividend at Rs 14 per equity share for the financial year 2022-23.

Read more at:
https://economictimes.indiatimes.com/markets/stocks/earnings/induind-bank-q4-results-pat-jumps-50-yoy-to-rs-2040-cr-dividend-at-rs-14/share/articleshow/99728028.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The net interest income (NII) of the lender came in at Rs 4,669 crore for the quarter under review, which is up 17%, compared with Rs 3,985 crore in the corresponding quarter of last year.

Read more at:
https://economictimes.indiatimes.com/markets/stocks/earnings/induind-bank-q4-results-pat-jumps-50-yoy-to-rs-2040-cr-dividend-at-rs-14/share/articleshow/99728028.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Following the announcement of the results, the stock is trading flat in afternoon trade on Monday at Rs 1,117 on NSE.

The Mumbai-based lender's provisions (other than tax and contingencies) fell as much as 29% during the March quarter to Rs 1,030 crore. The same stood at Rs 1,461 crore in the year-ago period.

The bank reported a strong quarter on the asset quality front with both gross non-performing assets (NPAs) and net NPAs on the d ..

Read more at:
https://economictimes.indiatimes.com/markets/stocks/earnings/induind-bank-q4-results-pat-jumps-50-yoy-to-rs-2040-cr-dividend-at-rs-14/share/articleshow/99728028.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Gold buying Akshaya Tritiya 2023: Is it mandatory to buy hallmarked gold coins?

Hallmarking on gold has been mandatory on select gold items in India from April 1, 2023. However, the same is not applicable to gold bullion/coins of 999/995 fineness. The mandatory order is applicable for gold jewellery and artefacts only. Note that even white gold alloy is covered under mandatory hallmarking.

According to the Bureau Standard of India (BSI) website, “the order is applicable for gold jewellery and artefacts only. Gold bullion/coins of 999/995 fineness are permitted to be  ..

Read more at:
https://economictimes.indiatimes.com/wealth/spend/gold-buying-akshaya-tritiya-2023-is-it-mandatory-to-buy-hallmarked-gold-coins/articleshow/99579980.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Also read: Gold hallmarking is not mandatory for these commonly bought articles

According to Bureau of Indian Standard (BIS) Director General Pramod Kumar Tiwari, the government intends to make gold bullion hallmarking mandatory after gold jewellery and is prepared with draft rules.
Hallmarked gold bullion will help in ensuring the desired purity of gold jewellery being manufactured in the country, he added.

What is hallmark ..

Read more at:
https://economictimes.indiatimes.com/wealth/spend/gold-buying-akshaya-tritiya-2023-is-it-mandatory-to-buy-hallmarked-gold-coins/articleshow/99579980.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Stock Market holiday on 4 April: BSE, NSE shut for Mahavir Jayanti, check dates markets will be closed in 2023

 

The MCX will be closed for the first session of trade, but will open for traders at 5 pm.

BSE and NSE are closed today on 4 April on account of Mahavir Jayanti celebrations. The country’s leading commodity exchange, the MCX will also remain shuttered for the first session of trade and will open for the evening session at 5 pm. The equity segment, the SLB segment, the equity derivative segment, interest rate derivatives segment and the currency derivatives segment will also be closed for trading. Additionally, the markets will also be closed on 7 April and the MCX will be closed for both the sessions. Including the weekends, the share markets will be closed for 13 days in April.

ALSO READ

During the upcoming month of April in 2023, the BSE website has announced that the stock market will observe a three-day closure apart from the weekends. Specifically, on 4 April, trading will be suspended in observance of Mahavir Jayanti, on 7 April for Good Friday, and on 14 April for Dr. Baba Saheb Ambedkar Jayanti. Here’s a look at the other holidays the stock markets will be closed on in 2023.

On Monday, markets extended their gaining streak, as Nifty rose 0.22% to 17,398, while Sensex added 114 points to settle at 59,106. “Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike. However, the surprise production cut by OPEC+ has fuelled concerns about inflationary pressure, which may prompt central banks to remain hawkish. The downside pressure in the market was mitigated as auto stocks rallied in response to the latest sales data, indicating a surge in demand. Additionally, India’s manufacturing PMI exceeded expectations, demonstrating its swiftest growth rate in three months due to increased output and new orders,” said Vinod Nair, Head of Research, Geojit Financial Services.