Bullish start likely for Dalal Street as GIFT Nifty advances 100 points

On Thursday, Indian markets opened weak but witnessed a partial recovery from intraday lows, although the benchmark remained in the red. Indian markets are expected to remain sideways, with a consolidative bias amid persistent FII outflows, weak rupee, elevated crude oil prices and lack of progress in US–Iran negotiations, particularly as the US continues to maintain its blockade stance.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 97 points, or 0.40 per cent, at 24,244, signaling that Dalal Street was headed for a positive start on Monday.

• Tech View: The immediate resistance is seen at the 50-DMA near 24,140; a decisive breakout above this could pave the way for an upside move towards 24,500. On the downside, a breach below 23,800 may drag the index towards 23,500 levels. Meanwhile, the volatility index declined by nearly 8% during the week to close around 18. A further easing in volatility would support the bullish momentum.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 5.8% to settle at 18.46 levels.

US Stocks end higher
The S&P 500 and the Nasdaq climbed to fresh record closing highs on Friday, supported by strong earnings and a decline in crude oil prices, capping off their biggest monthly percentage gains in years.

Asian shares gain
Asian stocks rose at the open and crude oil fluctuated as traders grappled with mixed signals from the Middle East, while strong corporate earnings kept the technology sector buoyant.

• S&P 500 futures were little changed as of 9:20 a.m. Tokyo time
• Australia’s S&P/ASX 200 fell 0.3%
• Euro Stoxx 50 futures rose 1.3%

Oil eases
Oil prices eased on Monday after U.S. President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait ‌of Hormuz, however the ⁠lack ⁠of a U.S.-Iran peace deal kept prices supported above $100.

Yen steady
The yen stabilised at the start of trading in Asia, strengthening slightly after a few choppy sessions following suspected intervention by authorities to strengthen the currency last week.

Stocks in F&O ban today

SAIL
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors net sold shares worth Rs 8,048 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 3,487 crore.

Rupee
The rupee on Thursday gained 4 paise to settle at 94.84 against the US dollar, tracking a correction in global crude prices and a weak greenback overseas.

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