D-Street poised for a positive start as GIFT Nifty trades firmly higher

The Nifty extended its losing run to an eighth straight week with a 3.1% weekly decline. Analysts say Indian equities are likely to stay under pressure in the near term as a record global bond rout, renewed strength in crude and the heaviest foreign selling in six months weigh on sentiment.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a positive start

GIFT Nifty on the NSE IX traded higher by 133.5 points, or 0.59 per cent, at 22,624.5, signaling that Dalal Street was headed for a positive start on Monday.


Tech View: Technically, Nifty continues to remain in a weak corrective structure, with the index trading well below the 50-Week EMA around 24,146. However, the 200-Week EMA at 22,380.81 provided an important cushion, and the weekly close remained marginally above this long-term moving average. A sustained hold above this level could lead to some consolidation or technical recovery, while a decisive breakdown could increase downside pressure.

India VIX: India VIX, which is a measure of the fear in the markets, rose 0.5% to settle at 13.49 levels.

Asian shares rise

Asian stocks rose after softer US jobs data reduced pressure on the Federal Reserve to keep raising interest rates. Oil erased early gains, while bonds crept higher.

• S&P 500 futures rose 0.1% as of 9:41 a.m. Tokyo time
• Hang Seng futures fell 0.2%
• Nikkei 225 futures (OSE) rose 1.9%
• Japan’s Topix rose 1.1%
• Australia’s S&P/ASX 200 rose 0.4%
• Euro Stoxx 50 futures rose 0.2%

Gold gains

Gold prices drifted higher on Monday after recent soft economic data sharply lowered expectations of a Federal Reserve rate hike in October, increasing the appeal of the non-yielding asset.

Oil slips

Oil prices slipped on Monday as rising crude exports from the Middle East and a release of oil stocks from Group of Seven nations are adding to supplies despite ongoing concerns about further damage to Gulf oil infrastructure amid the Iran war.

Dollar holds firm

The dollar started the week on a firm footing, hovering near a 17-month high on Monday as traders weighed receding odds of a Federal Reserve rate hike this month after soft US jobs data while fiscal worries in France left the euro vulnerable.

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

Stocks in F&O ban today

1) SAIL
2) Bandhan Bank
3) Ambuja Cement

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: Will Nifty, Sensex plunge for 9th straight week? TCS Q2, RBI MPC among 4 factors to drive Dalal Street from Monday

FII/DII action

Foreign portfolio investors net sold shares worth Rs 9,484 crore on Thursday. DIIs, meanwhile, were net buyers at Rs 10,041 crore.

Rupee

The Indian rupee dropped to its weakest level in two months as global bond yields surged to decadal highs and oil prices jumped, deepening pressure on the South Asian currency that was already hurt by foreign portfolio outflows on Thursday.

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.