Benchmark stock indices are likely to open on a muted note, tracking a weakness across Asian markets. US stocks were shut on Monday on account of New Year holiday, but a steady dollar hurt investor sentiment. Crude prices also slipped in Tuesday trade. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty formed a Bullish Harami pattern on the daily chart, suggesting a reversal in the price trend, said Rupak De, Senior Technical Analyst at LKP Securities.
“The index has moved back above 50 EMA with the strength indicator RSI in a bullish crossover. The trend to remain positive as long as it sustains above 17,950; resistance on the higher end is visible at 18,400,” he added.
SGX Nifty signals a weak start
Nifty futures on the Singapore Exchange quoted 55 points, or 0.30 per cent, lower at 18,168, hinting at a weak start for the domestic market on Tuesday.
Asian markets open lower
Asian markets were trading mostly lower on Tuesday. ChinaтАЩs Shanghai Composite was trading marginally lower. Hong Kong’s Hang Seng also kicked off trade with half a per cent decline. ┬аSeoul’s Kospi tumbled over 1.5 per cent while┬аAustralia’s ASX200 dropped about 2 per cent. ┬аJapan’s Nikkei remain shut.
Oil prices drop after IMF warning
Oil prices slid on Tuesday from their highest levels in a month on a stronger dollar and after the head of the International Monetary Fund warned of a tougher 2023 as major economies experience weakening activity. Brent crude futures dropped 98 cents, or 1.1 per cent, to $84.93 a barrel by 0148 GMT while US West Texas Intermediate crude was at $79.49 a barrel, down 77 cents, or 1 per cent, after the US dollar strengthened.
Dollar steady ahead of economic data
The dollar was mostly flat on Tuesday as investors awaited slew of economic data this week along with minutes of the last Federal Reserve meeting that will shed light on the Central bank’s thinking around interest rates and inflation. The dollar index made a subdued start to 2023 and was last up 0.068 per cent at 103.710. Elsewhere, the Japanese yen strengthened 0.46 per cent versus the greenback at 130.12 per dollar. ┬аThe euro was down 0.07 per cent to $1.0655, while sterling was last trading at $1.2037, down 0.07 per cent on the day.
Wall Street to resume trade
US stocks observed a holiday on Monday, January 2 on the account of new year. The three key US indices had ended lower on Friday. Dow Jones Industrial Average index shed 73.55 points, or 0.22 per cent, to 33,147.25; S&P500 index lost less than 10 points, or 0.25 per cent, at 3,839.50; and the Nasdaq Composite index dropped 11.6 points, or 0.11 per cent, to 10,466.48.
Stocks in F&O ban
National Stock Exchange (NSE) has not put any stocks under F&O ban for Tuesday, January 3. 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.
FIIs sell shares worth Rs 213 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 212.57 crore on Monday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 743.35 crore.
Rupee falls 14 paise against dollar
The rupee started the New Year on a muted note, declining 14 paise to close at 82.75 against the US dollar on Monday as rising crude oil prices and sustained foreign fund outflows weighed on investor sentiment.
Forex traders said the support from firm domestic equities and weak American currency was negated by the gains in crude oil prices and sustained foreign fund outflows, PTI reported.
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