Domestic equity indices are set to kick off the new week on a positive note, tracking positive cues from US stocks, which settled sharply higher on Friday. Major Asian stocks were close on Monday due to public holiday. The US dollar crept while crude prices dropped. Back home, traders will react quarterly results of Reliance Industries, ICICI Bank and Kotak Mahindra Bank that came in post market hours of Friday. They would also react to quarter numbers due later in the day. Here’s what you should know before the opening bell:
Nifty outlook
Nifty remained sideways last week, as the benchmark index failed to provide any directional movement. On the higher end, it failed to reclaim the 50-day exponential moving average, which is considered a line of polarity between bullish and bearish market sentiment for the short term., said Rupak De, Senior Technical Analyst at LKP Securities.
“The sentiment remains indecisive as the Nifty forms a back-to-back doji pattern on the weekly chart. However, the long-term bullish setup remains intact, with the higher top, higher bottom formation remaining in force. The support is intact at 17,750, resistance on the higher end is pegged at 18,300. Breakout on either end to confirm the directional trend,” he said.
SGX Nifty signals a strong start
Nifty futures on the Singapore Exchange quoted 83 points, or 0.46 per cent, up at 18,127.50, hinting at a positive start for the domestic market on Monday
Asian shares mostly higher
Major Asian markets remained shut on account of Lunar New Year. However, a few Asia-Pacific markets, which were opened, traded higher. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.21 per cent. Japan’s Nikkei gained 1.15 per cent; Australia’s ASX 200 added 0.08 per cent; and New Zealand’s DJ was down 0.36 per cent.
Oil prices fall in early trade
Oil prices drifted lower in early trade on Monday, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week’s gains on the prospect of an economic recovery in top oil importer China this year. Brent crude futures retreated by 46 cents, or 0.5 per cent, to $87.17, while US West Texas Intermediate (WTI) crude futures fell 40 cents, also down 0.5 per cent, to $81.24 a barrel.
Euro firm, dollar crept
The dollar was staring at a fourth straight session of losses against the euro on Monday as more hawkish comments on European interest rates contrasted with market pricing for a less aggressive Federal Reserve. The dollar index was weaker against a basket of currencies at 101.890. The euro crept ahead to $1.0870 and the pound was up at $1.2410. The dollar was holding at 129.40 against yen.
Wall Street settled lower
US stocks rallied to close higher on Friday, as the S&P 500 and Dow snapped a three-session losing streak and the Nasdaq rose more than 2 per cent, as quarterly earnings helped lift Netflix, while Google parent Alphabet climbed after announcing job cuts. Dow Jones Industrial Average jumped 330.93 points, or 1 per cent, to 33,375.49, the S&P500 jumped 73.76 points, or 1.89 per cent to 3,972.61 and the Nasdaq Composite rallied 288.17 points, or 2.66 per cent, to 11,140.43.
Q3 earnings today
Axis Bank, IDBI Bank, Canara Bank, Container Corporation of India, Tata Communications, Syngene International, Gland Pharma, Poonawalla Fincorp, KEI Industries, Jindal Stainless, HFCL, Triveni Turbine, Tamilnad Mercantiles Bank, Shoppers Stop, Craftsman Automation, Route Mobile are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Delta Corp, L&T Finance Holdings and PVR are three stocks under F&O ban for Monday, January 23 by the National Stock Exchange (NSE). 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 2,002 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 2,002.25 crore on Thursday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,509.95 crore. Foreign investors have pulled out Rs 15,236 crore from Indian equities in the month of January so far, the NSE data suggests.
Rupee gains 19 paise against dollar
The rupee appreciated by 19 paise to close at 81.17 against the US dollar on Friday on broad dollar weakness. However, weak domestic equities and a surge in crude oil prices capped the gains for the local currency, forex traders said.
Note: With inputs from PTI, Reuters and other agencies
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