D-St set for a negative opening as GIFT Nifty signals weak start

The Indian stock market snapped a five-session losing streak, with Sensex and Nifty ending in the deep green on Monday as easing tensions between Iran and the US, falling oil prices and other factors boosted market sentiment. Sensex ended 776 points higher at 76,836 while Nifty 50 gained over 228 points to 23,996 on Monday. The sharp gains added more than Rs 5 lakh crore to the total market capitalisation of all companies listed on BSE, pushing it up to Rs 481 lakh crore.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 54.5 points, or 0.23 per cent, at 23,987.50, signaling that Dalal Street was headed for a negative start on Tuesday.

Tech View: On Tuesday, the market may remain volatile as the NSE F&O contracts expire, Rupak De, Senior Technical Analyst at LKP Securities, explained. “If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800,” he added.


India VIX: India VIX, which is a measure of the fear in the markets, crashed nearly 10% to settle at 12.66 levels.

Read more: Stocks in news: HDFC Bank, BEL, Coal India, Adani Energy, Tata Power

Asian shares fall
Asian equities dropped as renewed concerns over artificial-intelligence spending fueled another selloff in chipmakers. Crude oil extended its decline.

• S&P 500 futures were little changed as of 9:05 a.m. Tokyo time
• Hang Seng futures rose 0.3%
• Japan’s Topix fell 1.3%
• Australia’s S&P/ASX 200 fell 0.2%
• Euro Stoxx 50 futures rose 0.3%

US Stocks end mixed
Wall Street ended mixed on Monday, as investors awaited guidance from major technology companies in a busy week for quarterly earnings, while also worrying that stubbornly high oil prices could force the Federal Reserve to raise interest rates.

Oil falls
Oil prices fell 1% on Tuesday as market participants continued to weigh a pause in U.S. strikes on Iran, which ‌has raised ⁠hope of ⁠a diplomatic solution to their conflict and the normalisation of Middle East energy flows.

Dollar gains
The U.S. dollar held at a one-month high on Tuesday as traders weighed a slim but lingering chance of a rate hike at the Federal Reserve's upcoming meeting, even as falling oil prices eased some concerns over inflation.

Also Read: Explained: Why crude oil prices tumbled over 9% to below $90/bbl in one day

Rupee
The rupee registered its best trading session in more than six weeks on Monday, ending 0.7% higher at 96.5625 against the US dollar. This may have been driven by likely intervention from the central bank, in addition to the impact of a plunge in oil prices and triggered stop-losses for long dollar positions. “Going forward, market participants will closely monitor FII flows, the US Federal Reserve's policy decision, and further developments in the Middle East, as these will be the key drivers for the rupee. Technically, the rupee is expected to trade in the 95.70–96.25 range over the near term,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)