Domestic stock indices are likely to kick off the week on a positive note after a selloff last week . US stocks settled higher on Friday while Asian peers were trading mixed. All eyes woul be on Adani Group stocks after the group’s clarification. The US Fed’s meeting and Union Budget will be the key factors to warch out this week. Here’s what you should know before the opening bell:
Nifty ended last week with a cut of 2.35 per cent. The index broke below an important support of 17,800. It was holding above this support level in the last one month, said Apurva Sheth, Head of Market Perspectives and Research at Samco Securities
“The index formed a Reverse Flag formation. This formation indicates that there could be further selling pressure. In that case, the index could drag lower to 16,750 levels. The immediate support for the index is placed at 17,500 level. he resistance for the index is placed at 17,800 level,” he said.
SGX Nifty signals a strong start
Nifty futures on the Singapore Exchange quoted 62 points, or 0.35 per cent, up at 17,751.50, hinting at a positive start for the domestic market on Monday.
Asian shares rise in early trade
Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.40 per cent. Japan’s Nikkei added 0.09 per cent; Australia’s ASX 200 shed 0.16 per cent; and New Zealand’s DJ was up 0.28 per cent; China’s Shanghai gained 1.35 per cent; Hong Kong’s Hang Seng advanced 0.39 per cent; and Korea’s Kospi dropped 0.88 per cent.
Oil gains amid Middle East tensions
Oil prices climbed in early Asia trade on Monday, supported by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand. Brent crude futures rose 54 cents, or 0.6 per cent, to $87.20 a barrel while US West Texas Intermediate crude was at $80.22 a barrel, up 54 cents, or 0.7 per cent.
Dollar stays firm
The dollar firmed on Monday and distanced itself from an eight-month trough ahead of a slew of central bank meetings this week, including the Federal Reserve’s, with traders keenly focused on guidance for the path of interest rate rises. The US dollar index rose 0.03 per cent to 101.92. Sterling was up 0.01 per cent at $1.24005, whereas the Euro was last 0.03 per cent higher at $1.08705. The Japanese yen slipped marginally to 129.94 per dollar.
US stocks settle higher
Wall Street advanced on Friday, marking the end of a rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week’s Federal Reserve monetary policy meeting. The Dow Jones Industrial Average rose 28.67 points, or 0.08 per cent, to 33,978.08, the S&P 500 gained 10.13 points, or 0.25 per cent, to 4,070.56 and the Nasdaq Composite added 109.30 points, or 0.95 per cent, to 11,621.71.
Q3 earnings today
Larsen & Toubro, Bajaj Finserv, Tech Mahindra, Bharat Petroleum, Bajaj Holdings & Investment, GAIL (India), SRF, Punjab National Bank, REC, Laurus Labs, IIFL Finance, Trident, Exide Industries, Mazagaon Dock Shipbuilders, Mangalore Refinery and Petrochemicals, Welspun India and Inox Leisure are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Ambuja Cement has been put under F&O ban by National Stock Exchange (NSE) for Monday, January 30. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
FPIs sell shares worth Rs 5,978 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 5,977.86 crore on Friday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 4,252.33 crore. Foreign investors have pulled out a net of Rs 17,023 crore this month so far.
Rupee rises 2 paise against dollar
The rupee appreciated 2 paise to close at 81.59 against the US dollar on Friday amid a firm American currency against major rivals overseas. However, heavy selling pressure in the domestic equity markets and unabated foreign fund outflows restricted the gains in the local currency, forex traders said.