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

On Friday, markets saw some relief after two consecutive sessions of sharp decline, with the Nifty gaining 1.3%, supported by buying in IT stocks. Analysts say Indian equities are likely to remain cautious amid elevated global risks.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a positive start

GIFT Nifty on the NSE IX traded higher by 38.5 points, or 0.17 per cent, at 22,641, signaling that Dalal Street was headed for a positive start on Monday.


Tech View: Everything looks bleak, and this sentiment might remain the same for a few more days. The RSI remains in a bearish crossover and has stayed in the oversold zone. On the lower end, support is placed at 22180, below which the index might extend its losses towards 22000. On the higher end, resistance is placed at 22350.

India VIX: India VIX, which is a measure of the fear in the markets, fell 5.9% to settle at 14.38 levels.

Asian shares mixed

Asian shares were mixed with losses in South Korea — where traders returned after a long weekend — and gains in Australia. Japanese markets are closed for a holiday.

• S&P 500 futures rose 0.3% as of 9:33 a.m. Tokyo time
• Australia’s S&P/ASX 200 rose 0.4%
• Euro Stoxx 50 futures rose 0.4%

US stocks rise

US equity-index futures advanced after crude oil declined, erasing an earlier gain triggered by Houthi attacks on Saudi Arabia. Futures for the S&P 500 Index climbed 0.3% and those for the Nasdaq 100 Index added 0.5%.

Oil prices slip

Oil prices slipped on Monday on expectations of more Russian supplies after US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities following a US diesel-supply deal with Moscow.

Gold prices steady

Gold prices were flat in early Asian trading on Monday, with market participants bracing for key US inflation data this week that could offer fresh clues on the Federal Reserve's next interest rate move.

Dollar stays near 18-month high

The dollar held ground near its strongest level in a year and a half in early Asian trade on Monday as an escalating Middle East conflict kept investors wary ahead of key US inflation data later this week that will influence monetary policy.

Read more: Ahead of Market: 10 things that will decide D-Street action on Monday

Stocks in F&O ban today

1) Bandhan Bank

2) Ambuja Cement

3) 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: Weekly Market Outlook: Nifty snaps 8-week losing streak, but can bulls reclaim the crucial 200-week moving average?

FII/DII action

Foreign portfolio investors net sold shares worth Rs 3,569 crore on Friday. DIIs, meanwhile, were net buyers at Rs 4,743 crore.

Rupee

The rupee appreciated 17 paise to close at 96.71 against the US dollar on Friday, in tandem with its broader Asian peers, supported by a slight softening in the US dollar and crude oil prices.

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.