Domestic stocks are likely to see a positive start to Tuesday's trade, but any upside could be limited amid concerns over the rising Covid cases in China. Dollar jumped amid safe haven demand while risky assets such as Asian market equities largely traded mixed in early Tuesday trade. All eyes would be on the market debut of Kaynes Technologies, scheduled for later in the day Here's what you should know before the Opening Bell:
Nifty trend looks a bit weak with a rounding top formation on the daily timeframe. The bearish crossover for RSI with a negative divergence suggests weak momentum, said Rupak De of LKP Securities. The analyst believes the 18,100 level would be the immediate support for Nifty, below which the index may drift down towards the 17,750 level. On the higher end, the resistance for Nifty is visible at 18,200 and 18,450 levels, he said.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 43.50 points, or 0.24 per cent, higher at 18,248.50, hinting at a positive start for the domestic market on Tuesday.
Asian markets mixed in early trade
Asian markets were trading largely mixed in early trade amid concerns over Covid cases in China and hawkish Fed commentary. Japan's Nikkei rose 0.86 per cent; China's Shanghai Composite edged 0.03 per cent lower; Kong Kong's Hang Seng was up 0.45 per cent while Taiwan's key index fell 0.30 per cent. Korea's Kospi was down 0.10 per cent.
US stocks end lower
US stocks settled lower on Monday amid fears that China could resume stricter measures to fight Covid after it said it faces its most severe test of the pandemic. Dow Jones declined 45.41 points, or 0.13 per cent, to 33,700.28. S&P500 index fell 15.4 points, or 0.39 per cent, to 3,949.94. Nasdaq Composite lost 121.55 points, or 1.09 per cent, to 11,024.51.
Corporate actions today
Tuesday will see at least 9 stocks namely Manappuram Finance, IPCA Labs, Container Corp of India, EID Parry, GE Shipping, ASM Technologies, Ingersoll-Rand, Pearl Global Industries and Morganite Crucible going ex-dividend. Shares of Nxtdigital will go ex-spinoff today. The Vedanta board will consider dividend while Siemens will announce its quarterly results today.
Kaynes Tech to make market debut
Kaynes Technologies will make market debut on Tuesday. The Rs 857.82 crore IPO, which ran from November 10 to November 14, was subscribed 34.22 times. The reserved portion for qualified institutional buyer portion saw a subscription of 98.47 times. Non-institutional portfolio received 21.21 times bids. Employee portion was subscribed 11.89 times while the retail portion saw a subscription of 4.09 times. The issue price is set at Rs 587 apiece.
Stocks in F&O ban
Shares of Escorts, GNFC, Indiabulls Housing, Punjab National Bank and SUN TV are banned in the F&O segment today. Derivative contracts in a security are banned when they cross 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 1,594 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 1,593.83 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,262.91crore.
Rupee falls 5 paise against dollar
The rupee fell 5 paise to settle at 81.79 against the dollar on Monday, thanks to the strengthening greenback overseas and a tepid trend in domestic equities. At the interbank foreign exchange market, the local unit opened at 81.84 and later witnessed an intraday high of 81.74 and a low of 81.91 during the session.
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