Domestic indices are likely to see a muted start to Friday’s trade, tracking mixed global cues. US stocks settled lower overnight but most Asian markets were trading higher in early trade. A recovery in the rupee may offer some respite amid relentless FPI selling. Here’s what you should know before the opening bell:
Nifty outlook
Nifty’s weekly chart suggested that the index is getting support near the 20-WMA, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan. He said multiple technical parameters suggested strong support for the index near 17,800. The overall structure shows continued consolidation near 17,800-18,300, he said.
SGX Nifty signals a tepid start
Nifty futures on the Singapore Exchange quoted 24 points, or 0.13 per cent lower at 18,041, hinting at a muted start for the domestic market on Friday.
Asian shares gain in early trade
Asia-Pacific shares traded mostly higher in Friday’s trade despite a sharp fall in US stocks overnight. Japan’s Nikkei gained 0.48 per cent while Hong Kong’s Hang Seng was up 0.28 per cent. Australia’s ASX 200 advanced 0.47 per cent; Seoul’s Kospi gained 0.84 per cent while China’s Shanghai Composite added 0.10 per cent.
Dollar nears one-month high
The dollar held near an almost one-month high on Friday, after US economic data highlighted a still-tight labour market that could keep the Federal Reserve on its aggressive rate hike path. The dollar index edged up 0.03 per cent to 105.15.
The surge in the greenback knocked sterling to a six-week low of $1.1873 overnight. The euro was last steady at $1.0519. Against the Japanese yen , the dollar rose 0.6 per cent to hit a one-week top of 134.045 yen overnight.
US stocks settle lower
Wall Street’s main indices fell sharply on Thursday as fresh evidence of a tight labour market and hawkish comments from policymakers deepened fears of elevated interest rates for longer than expected. The Dow Jones Industrial Average index dropped 339.69 points, or 1.02 per cent, to 32,930.08. The S&P500 index tanked 44.87 points, or 1.16 per cent, to 3,808.10. The Nasdaq Composite index plunged 153.52 points, or 1.47 per cent, to 10,305.24.
Stocks in F&O ban
Indiabulls Housing Finance was banned from trading by NSE in its F&O segment on Friday, January 6. 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.
FPIs sell shares worth Rs 1,450 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 1,449.45 crore on Thursday. Domestic institutional investors (DIIs) were sellers of equities to the tune of Rs 194.09 crore.
Rupee rises 37 paise against dollar
Rallying for the second straight session, the rupee jumped 37 paise to close at 82.45 against the US dollar on Thursday amid a weak greenback overseas. Forex traders said factors like strong Asian peers and crude oil prices trading below $80 per barrel also helped the local currency, PTI reported.
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