Domestic stock indices are likely to kick off the new week on a positive note on Monday, tracking positive cues from Asian peers. All eyes will be on a likely Bank of Japan's meeting today. US stocks will remain shut today. Back home, traders will react to Q3 earnings of HDFC Bank, DMart and Wipro. Besides, a host of companies would announce their Q3 earnings later today. Here's what you should know before the Opening Bell:
Nifty has been trading in a narrow 18,300-17,800 range since the past four weeks. The present scenario for traders has become very difficult because volatility has shot up but the trading range has narrowed considerably, said Rohan Patil, Technical Analyst at Samco Securities.
"Nifty on the weekly chart formed a Doji candle stick pattern and the wicks of the candle were of equal size on both ends, indicating indecision among traders. The benchmark Index made a couple of attempts to breach 17,800-17,780 level, but was not successful, as prices were continuously finding support near that zone," he noted.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 27.50 points, or 0.15 per cent, higher at 18,066, hinting at a positive start for the domestic market on Monday.
Asian shares trade mostly higher
Asian shares started Monday’s session on a cautious note, ahead of the Bank of Japan's anticipated emergency meeting. MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2 per cent up. Japan's Nikkei tanked 1.11 per cent; Australia's ASX 200 advanced 0.72 per cent; New Zealand's DJ was up 1.23 per cent; Hong Kong's Hang Seng gained 0.25; Korea’s Kospi rose 0.44 per cent; and China's Shanghai Composite added 0.48 per cent.
Oil prices fall in early trade
Oil prices dipped in early Asian trade on Monday, but held close to the highest levels since the start of the year on optimism that China's reopening will lift fuel demand at the world's top crude importer. Brent crude fell 36 cents, or 0.4 per cent, to $84.92 a barrel while US West Texas Intermediate crude was at $79.65 a barrel, down 21 cents, or 0.3per cent, amid thin trade during a public holiday.
Dollar wobbles, Yen nears 7-month highs
The US dollar struggled to recover from its decline after last week's selloff on data showing that US consumer prices fell for the first time in more than two-and-a-half years in December. The US dollar index fell 0.13 per cent to 102.13. The Japanese yen was last 0.1 per cent lower at 128.01 per dollar as it near an over seven-month peak on Monday. The euro edged 0.04 per cent higher against the greenback to $1.0838, whereas Sterling rose 0.05 per cent to $1.2240.
Wall Street settled with gains
US stocks finished higher on Friday, with shares of JPMorgan Chase and other banks rising following their fourth-quarter results, which kicked off the earnings season. All three major indexes also registered strong gains for the week. Dow Jones Industrial Average index gained 112.64 points, or 0.33 per cent, to 34,302.61; S&P 500 index added 15.92 points, or 0.40 per cent, at 3,999.09; and the Nasdaq Composite index rallied 78.05 points, or 0.71 per cent, to 11,079.16.
Q3 earnings today
Federal Bank, Bank of Maharashtra, Angel One, Century Textiles & Industries, Tinplate Company of India, Kesoram Industries, JSW Ispat Special Products, Raghuvir Synthetics and SVP Global Textiles are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Indiabulls Housing Finance and GNFC are the two stocks, which will remain under F&O ban for Monday, January 16 by the National Stock Exchange (NSE). 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 2,422 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 2,422.39 crore on Friday, Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,953.40 crore. Foreign investors have offloaded Rs 15,000 crore worth of Indian equities so far in the first two weeks of January.
Rupee falls 8 paise against dollar
The rupee depreciated by 8 paise to close at 81.38 against the US dollar on Friday, tracking a rebound in crude oil prices and sustained foreign fund outflows. Forex traders said positive macroeconomic data and broad weakness in the American currency supported the rupee and contained the depreciation bias.
Note: With inputs from PTI, Reuters and other agencies
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