GIFT Nifty down 2 points: Asian markets, crude oil prices, dollar movement & more

Domestic benchmark indices are likely to kick-off the week on a flat-note amid muted global cues. Asian stocks were looking for decisive cues after the US indices settled maringally higher last week. Back home, India Inc will kick-off the result season later this week. Here's what all you know to know before the Opening Bell:

Nifty outlook
Nifty formed an identical open and close on Friday, which indicates a type of Doji pattern, said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. "Normally, Doji formations at the highs call for caution for longs. But, the formation of this pattern in a range movement suggest a sharp negative implication can't be expected."

The short-term uptrend status of Nifty remains intact, but the market is likely to find resistance around 21,800-21,850 levels in the coming sessions. A decisive move only above 21,850-21,900 levels could open the next upside target of 22,200 levels. Any dips from here could find support around 21,500, Shetti added.

Nifty Bank outlook
Jatin Gedia, Technical Research Analyst at Sharekhan said Nifty Bank consolidated within a broad range 48,640 – 47,480 and witnessed a volatile day of trade. "In the process it has held on to the support of 47,800 where support in the form of the 20 day moving average is placed. Once this range bound action is complete we can expect the next leg of up move to resume. On the upside we expect 49,500 from a short term perspective," he said.

GIFT Nifty signals a flat start
Nifty futures on the NSE International Exchange traded 1.50 points, or 0.01 per cent, lower at 21,779.50, hinting at a flattish start for the domestic market on Monday.

Asian shares flat in early trade
Asian shares started in a muted mood on Monday after Wall Street snapped its winning streak, while investors braced for US inflation data and a corporate reporting season where good results are needed to justify high stock valuations. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.02 per cent. Japan's Nikkei jumped 0.40 per cent; China's Shanghai tanked 0.65 per cent; Hong Kong's Hang Seng fell 0.54 per cent; South Korea's KOSPI gained 0.18 per cent.

Oil prices slip amid price cuts by Saudi
Oil prices dipped in early trade on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tensions in the Middle East. Brent crude fell 9 cents, or 0.1 per cent, to $78.67 a barrel by 0057 GMT, while US West Texas Intermediate crude futures shed 10 cents, or 0.1 per cent, to $73.71 a barrel.

Dollar steady ahead of inflation data
The dollar was steady on Monday ahead of a key US inflation report later in the week for further clarity on the Federal Reserve's monetary policy outlook, after markets got off to a hesitant start to the year as rate cut bets were pared. The dollar index steadied at 102.38. Against the yen, the dollar rose 0.05 per cent to 144.67. Elsewhere, the sterling tacked on 0.02 per cent to $1.2721, while the euro edged 0.08 per cent higher to $1.0948.

Wall Street shares settled higher on Friday
US stock indexes endured a topsy-turvy session on Friday but ultimately closed marginally higher, although the small gains did not stop the S&P 500 and Nasdaq Composite from starting 2024 with their worst weekly showing in months. The S&P 500 gained 8.56 points, or 0.18 per cent, to end at 4,697.24 points, while the Nasdaq Composite gained 13.77 points, or 0.09 per cent, to 14,524.07. The Dow Jones Industrial Average rose 25.77 points, or 0.07 per cent, to 37,466.11.

Stocks in F&O ban list
As many as 11 stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday, January 08. The new addition namely- Piramal Enterprises (PEL)- will join the existing retentions including Balrampur Chini Mills, Delta Corp, Indian Energy Exchange (IEX), Chambal Fertilisers & Chemicals, Escorts Kubota, Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) India Cements, National Aluminium Company (Nalco), Steel Authority of India (SAIL), Zee Entertainment Enterprises (ZEEL). Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment.

FPIs buy shares worth Rs 1,697 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,696.86 crore on Friday. Domestic institutional investors (DIIs) were net sellers of Indian equities to the tune of Rs 3,497.62 crore. Overseas investors have pumped in Rs 4,773 crore in the domestic equities in the month of January 2024 so far.

Rupee rises 9 paise against dollar
The rupee appreciated 9 paise to close at 83.15 against the US dollar on Friday, helped by a positive trend in domestic equities and fresh foreign capital inflows. However, rising crude oil prices in international markets and a strong greenback overseas restricted gains for the local unit, forex traders said.


Note: With inputs from PTI, Reuters and other agencies

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