SGX Nifty rises 23 points: Asian markets, dollar movement, Q3 earnings, FPI flows & more

Domestic stock indices are likely to open on a positive note on Tuesday, despite mixed cues from Asian peers. US stocks remained shut on Monday. However, weakness in the US dollar and fall in the crude oil prices may boost sentiment amid fears of global recession. Back home, a dozen companies would announce their quarterly results today, which may trigger stock-specific actions. Here's what you should know before the opening bell: 

Nifty outlook

The short-term trend of Nifty continues to be range bound and the market has shifted into a squeeze type formation of a triangle. Having declined from the upper end of a triangle at 18,050-18,100 levels on Monday, one may expect further consolidation or upside bounce from the low in the coming sessions, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

"A decisive move beyond 18100-18150 levels or 17750 levels could confirm breakout in the market on either side. Immediate resistance is at 17980 levels," he said.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange quoted 23 points, or 0.13 per cent, higher at 17,968, hinting at a positive start for the domestic market on Tuesday.

Asian shares mixed

Asian shares were trading on a cautious note Tuesday with mixed cues. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.15 per cent. Japan's Nikkei rallied 1.14 per cent, per cent; Australia's ASX 200 shed 0.06 per cent; New Zealand's DJ was up 0.40 per cent; Hong Kong's Hang Seng retreated 0.03 per cent; Seoul's Kospi dropped 0.39 per cent; and China's Shanghai added 0.02 per cent.

Oil slips on recession worries

Oil prices fell in early trade on Tuesday, as recession fears dominated headlines out of the World Economic Forum's meeting in Davos, draining optimism that stoked the market last week on prospects of a fuel demand recovery in top oil importer China. Brent crude futures were down 38 cents, or 0.5 per cent, at $84.08. US West Texas Intermediate (WTI) crude futures slid $1.16, or 1.5 per cent, to $78.70 from Friday's close. There was no settlement on Monday due to a US holiday for Martin Luther King Day. 

Dollar down to multi-month lows

The dollar drifted off multi-month lows on Tuesday, while the yen was perched near seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan. The US dollar index bounced from a seven-month low and held at 102.28. The yen sat around 128.40, whereas the euro was loitered at $1.0830.  Sterling was last at $1.2199.

Wall Street shut on Monday

US stocks observed a holiday on Monday on the account of Martin Luther King Jr Day. However, the key US indices finished higher on Friday. 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&P500 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

ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, Bank of India, Metro Brands, National Aluminium Company, Tata Investment Corporation, Eris Lifesciences, Network 18 Media and Investments, TV18 Broadcast and Delta Corp are among the companies that will announce their results for the December 2022 quarter. 

Stocks in F&O ban

Three stocks- L&T Finance Holdings, Indiabulls Housing Finance and GNFC- will remain under F&O ban for Tuesday, January 17 by the National Stock Exchange (NSE). Derivative contracts in a security are banned when they 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 750 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 750.59 crore on Friday, Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 685.96 crore. 

Rupee drops 21 paise against dollar

The rupee pared initial gains and settled 21 paise lower at 81.59 against the US dollar on Monday, tracking a rebound in the greenback overseas and a muted trend in domestic equities. Forex traders said risk aversion in international markets and sustained foreign fund outflows weighed on investor sentiments.

Note: With inputs from PTI, Reuters and other agencies

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