Domestic stock indices look set to kick off the week on a weak note, tracking negative cues from global markets. Asian stocks opened lower while US stocks had settled last week with big cuts. GDP numbers, PMI readings and auto sales data will be key factors guiding the market this week. Here's what you should know before the opening bell:
Nifty outlook Nifty confirmed a failed breakout and the bears were in driver's seat for the entire last week. The index formed a long bearish candle on the weekly chart that engulfed its previous three weeks' candles. It indicates that the bears are having an upper hand in the market, said Rohan Patil, Technical Analyst, Samco Securities.
"The structure is shifting its momentum towards the bears, and the immediate support for the Nifty is placed at around 17,350 level. In case prices drift below these levels, then 17,050-17,000 will be on the cards. Only a sustained close above the 17,750- 17,800 zone is likely to trigger bullish momentum toward the 18,100 – 18,200 levels," he said.
SGX Nifty signals a negative start Nifty futures on the Singapore Exchange quoted 20 points, or 0.11 per cent, down at 17,522.50, hinting at a negative start for the domestic market on Monday.
Asian shares trade lower Asian shares slipped on Monday as markets were forced to price in ever-loftier peaks for US and European interest rates, slugging bonds globally and pushing the dollar to multi-week highs. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.39 per cent. Japan's Nikkei shed 0.09 per cent; Australia's ASX 200 declined 1.10 per cent; New Zealand's DJ tanked 1.32 per cent; China's Shanghai added 0.06 per cent; Hong Kong's Hang Seng retreated 0.02 per cent; and Seoul's Kospi plunged 0.97 per cent.
Oil prices little changed Oil was little changed in early trade on Monday, as Russia's plans to deepen oil supply cuts continued to support prices, while increasing global inflation risks and rising crude inventories in the United States weighed. West Texas Intermediate US crude futures (WTI) was trading at $76.36 a barrel, 4 cents, or 0.05 per cent higher, while Brent crude futures was down 2 cents, or 0.02 per cent, at $83.14 a barrel at 0114 GMT.
Dollar nears 7-week high The dollar was on the front foot on Monday, hovering near a seven-week peak after a slew of strong US economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer. The dollar index was seen at 105.17. The euro was up 0.08 per cent to $1.0554, whereas Sterling was last trading at $1.1959, up 0.13 per cent. The Japanese yen strengthened 0.15 per cent to 136.26 per dollar.
US stocks settle lower Wall Street's main indexes posted their biggest weekly drop of 2023 after sharp losses on Friday, as investors braced for the possibility of more aggressive rate hikes from the US Federal Reserve as U.S. economic data pointed to resilient consumers. The Dow Jones Industrial Average fell 336.99 points, or 1.02 per cent, to 32,816.92, the S&P 500 lost 42.28 points, or 1.05 per cent, to 3,970.04 and the Nasdaq Composite dropped 195.46 points, or 1.69 per cent, to 11,394.94.
Stocks in F&O ban No stocks have been under F&O ban by National Stock Exchange (NSE) for Monday, February 27. 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 1,470 crore Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 1470.34 on Friday. Similarly, domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 1400.98 crore. FPIs remained cautious and pulled out Rs 2,313 crore from Indian equities in the current month so far.
Rupee drops 11 paise against dollar The rupee depreciated 11 paise to close at 82.75 against the US currency on Friday, as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments. Unabated foreign fund outflow also impacted the market sentiments.
Note: With inputs from PTI, Reuters and other agencies
Also read: Market Wrap: Dalal Street ended in deep red amid a weak global market, persistent FII outflows