Domestic stock indices are likely to open lower on Monday, tracking muted global cues. US stocks settled mostly lower on Friday and Asian markets were largely weak in today’s trade. Traders will be awaiting US inflation data this week. Back home, Q3 earnings season will also keep investors busy. Here's what you should know before the opening bell:
Nifty outlook
The trend deciding level to watch out for would be 18,000, said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One. This, Chavan said, will confirm the completion of the long corrective phase. He expects to see some exuberant moves in the market as the sentiment is likely to improve drastically post the breakout.
“On the flipside, the support range is visible around 17,800 - 17,700," he said.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange quoted 42 points, or 0.23 per cent, lower at 17,835, hinting at a negative start for the domestic market on Monday.
Asian shares open mostly lower
Asian shares slipped on Monday as investors hunkered down for US inflation and retail sales data that could jolt the outlook for interest rates globally, while tempering or accelerating the recent spike in bond yields. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.77 per cent. Japan's Nikkei plunged 1.25 per cent; Australia's ASX 200 declined 0.26 per cent; New Zealand's DJ tanked 1.12 per cent; China's Shanghai rose 0.25 per cent; Hong Kong's Hang Seng declined 1.11 per cent; and Korea’s Kospi tumbled 0.94 per cent.
Oil prices eased in early trade
Oil prices eased a touch after jumping on Friday when Russia said it planned to cut its daily output by 5% in March after the West imposed price caps on Russian oil and oil products. Brent dipped 36 cents to $86.03 a barrel, while U.S. crude fell 35 cents to $79.37.
Dollar nears 5-week high
The dollar hovered near a five-week high against major peers on Monday on rising bets for prolonged Federal Reserve policy tightening ahead of a crucial consumer price report the following day. The dollar index added 0.068 per cent to 103.65. The US currency gained 0.18 per cent to 131.63 yen. The euro eased 0.06 per cent to $1.0669, while sterling was last trading at $1.2044, down 0.12 per cent on the day.
US stocks settle mixed
Wall street ended Friday on a mixed note. The Nasdaq ended lower on Friday as megacap growth stocks came under pressure after Treasury yields pointed to higher interest rates. But a rally in energy stocks as oil prices climbed on Russia's plans to cut crude supplies helped push up the Dow and the S&P 500. The Dow Jones Industrial Average rose 0.5 per cent, the S&P 500 gained 0.22 per cent and the Nasdaq Composite dropped 0.61 per cent, as it recorded its first weekly decline of the year.
Q3 earnings today
FSN E-Commerce Ventures, IRCTC, Power Finance Corporation, Steel Authority of India (SAIL), Gujarat Gas, Linde India, Grindwell Norton, Zee Entertainment Enterprises, IRB Infrastructure Developers, The New India Assurance Company, Ratnamani Metals & Tubes, Gujarat State Petronet, Godrej Industries, RHI Magnesita India, Capri Global Capital, Campus Activewear, Castrol India and Global Health are among the companies that will announce their Q3 earnings today.
Stocks in F&O ban
Ambuja Cements and Indiabulls Housing Finance are the two stocks which have been put under F&O ban by National Stock Exchange (NSE) for Monday, February 13. 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 145 crore
After intense sell-off in last few sessions, provisional data available with NSE suggests FPIs turned net buyers of domestic stocks to the tune of Rs 1,458.02 crore on Friday. However, domestic institutional investors (DIIs) also turned net sellers of equities to the tune of Rs 291.34 crore. Interestingly, foreign investors have pulled out over Rs 9,600 crore the month of February so far.
Rupee drops 7 paise against dollar
The rupee depreciated 7 paise to close at 82.58 against the US dollar on Friday, tracking rising crude oil prices and a muted trend in domestic equities. Forex traders said the rupee consolidated in a narrow range amid risk aversion in global markets.
Note: With inputs from PTI, Reuters and other agencies
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