D-Street braces for weak opening on negative GIFT Nifty cues

Domestic equities ended mixed on Monday, with the Nifty declining 0.1%. The US Treasury's decision to expand its long-term bond buyback programme weakened the US dollar and supported precious metals. Analysts say Indian equities are expected to remain lacklustre amid mixed global cues and a lack of domestic triggers. Geopolitical tensions remain elevated amid the prospect of fresh US sanctions on Iran, while sectoral and news-specific action is likely to remain in focus.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 46.5 points, or 0.19 per cent, at 24,164.5, signaling that Dalal Street was headed for a negative start on Tuesday.

• Tech View: Going into Tuesday, the market is likely to remain highly volatile as traders adjust their positions based on new US sanctions measures on Iran and Iran’s possible response. This high-stakes event will coincide with the high-stakes NSE monthly F&O expiry. Therefore, expect a volatile Tuesday. On the lower end, support is placed at 24,200/24,000. On the higher end, 24,350 might act as a crucial resistance level, above which the Nifty could witness a meaningful rally.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 3% to settle at 11.52 levels.

Asian shares dip

Asian equities followed Wall Street lower as investors cut exposure to technology shares ahead of earnings that may test confidence in the artificial intelligence trade. Gold climbed for a fifth consecutive day.

• S&P 500 futures were little changed as of 9:04 a.m. Tokyo time
• Hang Seng futures rose 0.6%
• Japan’s Topix fell 0.1%
• Australia’s S&P/ASX 200 rose 0.2%
• Euro Stoxx 50 futures fell 0.1%

US stocks decline

Technology names led a decline in US stocks on Monday as investors geared up for a busy week of economic data and earnings from Nvidia Corp.

Oil prices steady

Oil prices steadied on Tuesday, after falling more than 2% in the previous ​session, as investors assessed the impact ​of harsher U.S. secondary sanctions against Iran.

Dollar struggles for traction

The US dollar struggled to hold onto gains against major ​peers on Tuesday, as investors parsed Washington's expanded Iran-related sanctions and renewed efforts to ease pressure on longer-dated Treasury yields.

Gold rises

Gold rose on Tuesday, extending a rally driven by the US Treasury's ​recent buyback announcement, while focus shifted ​to key US inflation data and a speech later ​this week by Federal Reserve Chair Kevin Warsh for clues on interest rates.

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

Stocks in F&O ban today

NIL

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 1,182 crore on Monday. DIIs, meanwhile, were net buyers at Rs 2,493 crore.

Rupee

The rupee pared initial gains and settled for the day lower by 3 paise at 95.74 (provisional) against the US dollar on Monday, on a positive American currency and weak domestic markets.

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