Domestic stock indices are set to open on mildly lower on Monday. Asian peers were mostly down and US stocks settled mostly lower on Friday. Q3 earnings and Adani Group stocks are likely to remain at focus after wiping out over Rs 10 lakh crore market value. Here's what you should know before the opening bell:
Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One said the immediate support for Nifty is visible at 17,600. A major sacred zone remains at 17,400–17,300, which coincides with the 200-day SMA. As long as the index defends the range, there is no real reason to worry, he said.
“On the flipside, if the index has to regain momentum,, the Nifty needs to surpass 18,000–18,100 on a closing basis," he said.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange quoted 26.50 points, or 0.15 per cent, lower at 17,813.50, hinting at a negative start for the domestic market on Monday.
Asian shares open mostly lower
Asian shares eased on Monday after a run of upbeat economic data from the United States lessened the risk of recession, but also suggested interest rates would have to rise further and stay up for longer. MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.71 per cent. Japan's Nikkei gained 1.01 per cent; Australia's ASX 200 shed 0.28 per cent; New Zealand's DJ was down 0.11 per cent; China's Shanghai fell 0.91 per cent; Hong Kong's Hang Seng tanked 2.05 per cent; and Korea’s Kospi dropped 0.87 per cent.
Oil prices edged higher
Oil prices inched up in early trade on Monday after falling around 8 per cent last week, as jitters over major economies outweighed signs of a demand recovery in China. Brent crude futures crawled up 16 cents, or 0.2 per cent, to $80.10 a barrel, while US West Texas Intermediate (WTI) crude futures rose 15 cents, also 0.2 per cent higher, to $73.54 a barrel.
Dollar index tops 103 level
US dollar moved sharply higher following stunning reports on jobs and services, catching speculators very short of the currency. The dollar extended its rally on the yen to a three-week top of 132.60 on Monday. The early gains were later pared to 131.94 yen but still helped the dollar hold firm on a basket of currencies at 103.090 , having jumped 1.2 per cent on Friday. The euro was huddled at $1.0791 after shedding 1.1 per cent on Friday.
US stocks settled lower
Major US stock indexes ended lower on Friday after surprisingly strong jobs data sparked concerns about aggressive Federal Reserve action, while investors digested a mixed bag of megacap company earnings reports. In another sign of economic strength, US services industry activity rebounded strongly in January. The Dow Jones Industrial Average fell 127.93 points, or 0.38 per cent, to 33,926.01, the S&P 500 lost 43.28 points, or 1.04 per cent, to 4,136.48 and the Nasdaq Composite dropped 193.86 points, or 1.59 per cent, to 12,006.96.
Q3 earnings today
Adani Transmission, Tata Steel, Varun Beverages, Muthoot Finance, LIC Housing, Vinati Organics, KPR Mill, Hitachi Energy India, SJVN, Nuvoco Vistas Corporation, Suven Pharmaceuticals, Easy Trip Planners, Tejas Networks, Balaji Amines, BLS International Services, JK Paper, V-Mart Retail and Infibeam Avenues, are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Adani Ports is the only stock which has been put under F&O ban by National Stock Exchange (NSE) for Monday, February 6. 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 932 crore
Provisional data available with NSE suggests that FPIs turned net sellers of domestic stocks to the tune of Rs 932.44 crore on Friday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,264.74 crore. After an outflow of Rs 28,852 crore in January, FPI made a net withdrawal of over Rs 5,700 crore from equities in the first week of February.
Rupee rises 12 paise against dollar
The rupee appreciated 12 paise to close at 82.08 against the US currency on Friday, supported by a rebound in domestic equities and easing crude oil prices. However, corporate dollar demand and weak macroeconomic data weighed on investor sentiments and restricted the sharp gain in the rupee, forex traders said.
Note: With inputs from PTI, Reuters and other agencies
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