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

Benchmark Nifty declined 0.7% on Monday, while broader markets outperformed. Analysts say Indian markets are likely to remain cautious in the near term amid ongoing geopolitical tensions, volatility in crude oil prices and uncertainty over a resolution to the West Asia crisis. As the second quarter earnings season gathers pace, markets are likely to see stock-specific action.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a positive start

GIFT Nifty on the NSE IX traded higher by 47.5 points, or 0.21 per cent, at 22,418, signaling that Dalal Street was headed for a positive start on Tuesday.


Tech View: The overall sentiment looks weak and may lead to further downside, as the spike in crude oil prices continues to weigh on equities. On the lower end, immediate support is placed at 22,300, below which the Nifty might drift towards 22,100 or even lower. On the higher end, resistance is placed at 22,420 and 22,650.

India VIX: India VIX, which is a measure of the fear in the markets, rose 6% to settle at 15.25 levels.

Asian shares decline

Asian stocks declined as the artificial intelligence trade, one of the hottest corners of the market this year, came under renewed pressure ahead of a key earnings season.

The MSCI Asia Pacific Index lost 0.9%, set for its weakest close since mid-August, as shares retreated in South Korea and Japan.

• S&P 500 futures fell 0.1% as of 9:35 a.m. Tokyo time
• Hang Seng futures were little changed
• Japan’s Topix fell 0.2%
• Australia’s S&P/ASX 200 fell 0.3%
• Euro Stoxx 50 futures fell 0.3%

US stocks mixed

The technology-heavy Nasdaq composite closed lower on Monday as oil prices jumped nearly $2 a barrel after attacks on a Saudi airport, and investors waited for banks to kick off the third-quarter earnings season and for economic data this week.

The S&P 500 ended the session barely lower while the Dow advanced.

Oil edges lower

Oil prices edged lower on Tuesday after climbing by nearly $2 a barrel in the previous session, as traders assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia.

Gold subdued

Gold prices were subdued on Tuesday, with market focus on upcoming US inflation prints for fresh signals on the Federal Reserve's interest-rate trajectory.

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

Stocks in F&O ban today

1) Bandhan Bank

2) Ambuja Cement

3) LIC Housing Finance

4) Kaynes

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: Polycab India’s F&O exit: NSE sets December 30 deadline; NCLAT stays insolvency order

FII/DII action

Foreign portfolio investors net sold shares worth Rs 1,708 crore on Monday. DIIs, meanwhile, were net buyers at Rs 3,045 crore.

Rupee

The rupee appreciated 96 paise, logging its steepest single-day gain in more than six months, to close at 95.75 (provisional) against the US dollar on Monday after the Reserve Bank of India over the weekend stepped in with several measures aimed at bolstering the domestic currency.

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.