Domestic stocks are likely to see a cautious start to Monday’s trade amid a rise in dollar and worries over rate hikes ahead of the US Fed rate decision on Wednesday. Asian markets were trading lower in early trade. At home, all eyes would were on the market debut of Uniparts India. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty on Friday slipped below the recent consolidation range, suggesting a rise in pessimism. The bulls have failed to protect the 18,500 level and the trend may remain negative with support placed at 18,350 and 18,200 levels, said Rupak De, Senior Technical Analyst at LKP Securities. On the higher end, 18,670 may act as crucial resistance, the analyst said.
SGX Nifty signals a weak start
Nifty futures on the Singapore Exchange quoted 40 points, or 0.22 per cent, lower at 18,551, hinting at a weak start for the domestic market on Monday.
Asian markets fall as dollar drifts higher
Asian shares dipped on Monday while the dollar drifted higher at the start of a hectic week, as markets awaited a flurry of rate decisions from the US Federal Reserve, the European Central Bank and others, Reuters reported.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent on Monday, after tumbling 2.6 per cent last week – the biggest fall since late September. Japan’s Nikkei dipped 0.5 per cent, while South Korea dropped 0.7 per cent. S&P500 futures slipped 0.2 per cent.
US stocks settle lower
Treasury yields rose and Wall Street stocks fell on Friday after data on US producer prices raised conflicting views, stirring hope of moderating inflation but also fears the Federal Reserve will need to keep interest rates higher for longer. Dow Jones Industrial Average fell 0.9 per cent, while the S&P500 index lost 0.73 per cent and Nasdaq Composite index dropped 0.7 per cent.
Stocks in F&O ban
Shares of BHEL, Delta Corp, GNFC and Punjab National Bank 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 502 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 158.01 crore on Friday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 501.63 crore.
Rupee rises 10 paise against dollar
The rupee appreciated by 10 paise to close at 82.28 against the dollar on Friday, tracking the weakening of the greenback in the overseas market. Forex traders said muted domestic equities and foreign fund outflows weighed on investor sentiments and restricted the gains, PTI noted. At the interbank foreign exchange market, the local unit opened at 82.30 and touched an intra-day high of 82.08 and a low of 82.33 against the greenback.
Also read: Asian shares dip, dollar firms ahead of central bank rate hikes
Also read: Sensex tumbles 389 points; Nifty below 18,500; IT stocks major drag