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

Indian equity markets settled lower on Friday, August 14, as investors awaited greater clarity on the outlook for energy prices and global bond yields. The NSE Nifty50 ended at 24,366, down 29.85 points, or 0.12%, while the Sensex fell 70.71 points, or 0.09%, to close at 78,009.25.

Analysts suggest that investors will closely track crude oil prices, geopolitical developments, US retail sales, FOMC minutes and Chinese economic data for further cues on global growth and the Federal Reserve’s policy outlook.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 40 points, or 0.16 per cent, at 24,391, signaling that Dalal Street was headed for a negative start on Monday.

Tech View: Nifty witnessed another day of lacklustre trading as traders seemed less interested in taking directional positions ahead of the weekend. Nifty closed slightly lower, ending just above the 20EMA and broadly managing to maintain near-term strength.

According to Rupak De, Senior Technical Analyst at LKP Securities, the momentum indicator RSI has started to weaken further, with the bearish crossover slipping towards the oversold zone.

“Overall, sentiment remains weak, with the potential for a further fall towards 24,180. On the higher end, 24,400 might act as crucial resistance,” De said.

India VIX: India VIX, which is a measure of the fear in the markets, fell 1.58 % to settle at 11.67 levels.

US Stocks rise
In other corners of the market, futures contracts for the S&P 500 and the Nasdaq 100 Index advanced, after the underlying gauges slipped Friday on signs of a slowdown in US consumer spending.

Asian shares mixed
Asian shares drifted sideways on Monday while investors kept a wary eye on oil prices, which notched sizeable ​gains last week as the lack of progress ​towards ending the Iran war kept inflation risks tilted to the upside.

Dollar declines
The dollar was weaker against all of its Group-of-10 peers after Friday data showed US retail sales fell in July by the most in more than a year as consumers pulled back on purchases.

Oil steadies
Oil prices barely moved in early trade on Monday as tanker traffic through the Strait ‌of Hormuz slowed ⁠over the ⁠weekend with no peace deal in sight between the United States and Iran ​to end the conflict in the Middle East.

Gold rises
Gold prices inched higher in early Asian trade on Monday, ​supported by a softer ​dollar and recent economic data that curbed expectations of ​a U.S. interest rate hike next month.

Read Also: Ahead of Market: 10 things that will decide stock market action on Monday

Stocks in F&O ban today
1) BANDHANBNK
2) LICI
3) MANAPPURAM
4) 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 purchased shares worth Rs 508.12 crore on Friday, while DIIs added shares worth Rs 356.40 crore.

Rupee
Rupee traded with a weak bias this week, declining around 0.25% to 95.44, although the overall movement remained largely range-bound. The domestic currency faced some pressure as India's July CPI rose to 4.45% from 4.37%, with elevated crude oil prices during July adding to inflationary concerns.

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