D-St set for a cautious opening as GIFT Nifty signals muted start

Indian benchmark indices started the week on a weak note, with the Nifty slipping below the 22,800-mark intraday amid broad-based selling. Analysts say a decisive break below 22,700 could intensify selling pressure and drag the index towards 22,400, where the trendline joining the major lows of the past two years and the 200-week EMA provide important support.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded lower by 10 points, or 0.04 per cent, at 22,834.5, signaling that Dalal Street was headed for a muted start on Tuesday.


Tech View: On the downside, immediate support is placed at 22,650–22,700, below which further correction could extend in the short term. On the higher end, 23,000 is likely to act as a strong resistance and may prove difficult to reclaim.

India VIX: India VIX, which is a measure of the fear in the markets, rose 12.1% to settle at 13.64 levels.

Asian shares mixed

Equity-index futures for Asia were mixed, while contracts for US stocks edged higher after the S&P 500 erased its advance for the month and the Nasdaq 100 fell 1.1%.

• S&P 500 futures fell 0.1% as of 10:11 a.m. Tokyo time
• Hang Seng futures were little changed
• Nikkei 225 futures (OSE) fell 0.3%
• Japan’s Topix fell 1.7%
• Australia’s S&P/ASX 200 rose 0.1%
• Euro Stoxx 50 futures rose 0.1%

US stocks decline

Yields in the US bond market cranked higher Monday and again touched their highest levels in roughly two decades, which knocked US stocks further from their record high.

Gold steadies

Gold steadied on Tuesday but hovered near a more than seven-week low on concerns that the Federal Reserve may keep interest rates higher for longer, while investors awaited a slew of US economic data.

Oil prices rise

Oil prices rose for a second successive session on Tuesday as lingering concern over Middle East supply disruption brought about by US-Iran conflict outweighed signs of recovering crude exports from the region.


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

Stocks in F&O ban today

1) SAIL

2) LIC Housing Finance

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.

Read more: Motilal Oswal sees 4 factors boosting risk-reward after market’s sharp fall from 2024 high, lists 27 stock picks

FII/DII action

Foreign portfolio investors net sold shares worth Rs 5,353 crore on Monday. DIIs, meanwhile, were net buyers at Rs 5189 crore.

Rupee

The rupee depreciated 28 paise to close at 96.03 against the US dollar on Monday, on risk-off sentiments in global markets after the US rejected a deal proposal by Iran, diminishing hopes of reopening of the Strait of Hormuz.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.