D-Street poised for positive start as GIFT Nifty signals gains

High crude oil prices, persistent geopolitical concerns in the Middle East, and elevated international bond yields continued to weigh on risk appetite for Indian investors lately. The recent efforts by the US Treasury to ease pressure on bond yields failed to provide lasting comfort, as rising crude prices and renewed inflation concerns remained key overhangs for global markets. Analysts say, a follow through strength above Friday’s high 24,284 for Nifty will signal extension of the pullback towards 24,400 levels in the coming sessions. While failure to move above Thursday’s high will signal consolidation in the range of 24,000-24,250.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a positive start

GIFT Nifty on the NSE IX traded higher by 64 points, or 0.26 per cent, at 24,350, signaling that Dalal Street was headed for a positive start on Monday.


Tech View: Overall, sentiment remains sideways to mildly positive. On the lower end, support is placed at 24,200. A fall below 24,200 might trigger a correction towards 24,000. On the higher end, resistance is placed at 24,350; a rise above this level might take the index towards 24,500.

India VIX: India VIX, which is a measure of the fear in the markets, rose 4% to settle at 11.20 levels.

US stocks closed higher

The main US stock indexes closed higher on Friday but posted weekly losses as investors were rattled by fluctuating government bond yields and a lack of clarity on progress in the Middle East.

Asian shares edge lower

Asian stocks edged lower, with the artificial intelligence theme in early focus during a week set to be shaped by earnings from chip bellwether Nvidia Corp. and the Federal Reserve’s annual gathering.

• S&P 500 futures were little changed as of 9:43 a.m. Tokyo time
• Hang Seng futures fell 0.5%
• Nikkei 225 futures (OSE) fell 0.4%
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 rose 0.2%
• Euro Stoxx 50 futures were little changed

Oil falls

Oil prices slipped more than $1 a barrel on ​Monday as investors took profits ​ahead of an expected announcement from Washington about imposing more ​sanctions on Iran that may further disrupt supplies from the Middle East.

Gold gains

Gold prices extended gains on Monday to hit their highest ​level in more than ​three months, as investors looked ahead to US inflation ​data and a speech later this week by Federal Reserve Chair Kevin Warsh.

Dollar falls

A wavering dollar teetered near multi-month lows on Monday in a market unsettled by the US ​Treasury's promise to buy back more long bonds, ​while traders awaited details of sanctions on Iran and on policy speeches this week in ​the US and Japan.

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

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 543 crore on Friday. DIIs, meanwhile, were net buyers at Rs 2,123 crore.

Rupee

The rupee pared initial gains and settled higher by just 3 paise at 95.71 against the US dollar on Friday, as the support from a weak dollar was negated by continued geopolitical tensions.

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