SGX Nifty sheds 74 points; Asian markets, oil prices, FPI flow trend; Bikaji Foods, PTI India Q2 results & more
Strong economic data in the US and a steep fall in stocks on Wall Street overnight are likely to hurt sentiment on Dalal Street, when the market resumes trade on Tuesday. Asian markets were mostly down in morning trade while the dollar was up amid fears of further rate hike by the US Fed. Oil prices also edged higher. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty has respected an immediate support of 10-day EMA and also a trend line support as per the concept of change in polarity as per daily chart. The positive chart pattern like higher top-bottom continued on the daily chart. Monday’s low of 18,591 is likely to be a new higher bottom of the sequence. The minor downward correction in Nifty is about complete and the market is set to show upside bounce from the low in the short term, said Nagaraj Shetti of HDFC Securities, who added that the levels of 18,550-18,600 can offer a support to the index going ahead.
SGX Nifty signals a weak start
Nifty futures on the Singapore Exchange quoted 74 points, or 0.39 per cent, lower at 18,736, hinting at a weak start for the domestic market on Tuesday.
Asian markets fall in early trade
Asian markets fell on Tuesday, following an overnight drop in US stocks as strong economic data in the US is expected to give more room to the US Fed to keep interest rate hike for a longer period. Hong Kong’s Hang Seng fell 0.68 per cent, Korea’s Kospi declined 0.58 per cent, China’s Shanghai Composite was down 0.26 per cent while Japan’s Nikkei stood flat in the early trade.
Oil rises after price cap on Russian crude
Oil prices edged higher on Tuesday, after a G7 price cap on Russian seaborne oil came into force on Monday on top of a European Union embargo on imports of Russian crude by sea. Brent crude futures had risen 66 cents to $83.34 a barrel. West Texas Intermediate crude rose 70 cents to $77.63 a barrel, Reuters reported.
US stocks settle lower
US stocks and Treasury prices fell on Monday as new evidence of a strong economy raised fears that interest rates will stay higher for longer, eclipsing China’s easing of pandemic restrictions, Reuters reported. US services industry activity unexpectedly picked up in November, with employment rebounding. US factory activity also showed a 1 per cent gain for October, as did orders for durable goods. Dow Jones declined 1.4 per cent, S&P500 index lost 1.79 per cent and Nasdaq Composite dropped 1.93 per cent.
Corporate actions today
Tuesday will see Bikaji Foods International and PTC India declaring quarterly results. The board of Markolines Pavement Technologies will consider a proposal of rights issue. Star Housing Finance, Grauer & Weil (India), Maxheights Infrastructure, Pharmaids Pharmaceuticals and Integrated Technologies are some other companies, whose boards will meet today.
Stocks in F&O ban
Shares of Delta Corp, GNFC and Indiabulls Housing Finance are banned in the F&O segment today. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
DIIs buy shares worth Rs 2,608 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 1,139.07 crore on Monday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 2,607.98 crore.
Rupee falls 52 paise against dollar
The rupee pared its initial gains to settle down by 52 paise at a nearly two-week low of 81.85 against the dollar on Monday weighed down by weak domestic markets, forex outflows and a rise in crude oil prices. Forex traders said a weak dollar in the overseas market cushioned the downside for the local unit.
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