GIFT Nifty down 39 points: Asian markets, crude oil prices, Q3 results, dollar movement, & more

Domestic benchmark indices are likely to open on a lower note on Monday as the weakness in Asian stocks and geopolitical tensions in the Middle-East is likely to dent the sentiments at Dalal Street. On the other hand, US stocks settled higher over the weekend after optimistic jobs reports and strong earnings. US dollar and Crude oil prices were also holding higher. Back home, Q3 earnings are heading towards the last leg, while IPO of Apeejay Surrendra Park Hotels will open for bidding today. Here's what all you know to know before the opening bell:

Nifty outlook
Nifty surpassed the 22,000-mark during the first half of the Friday session but subsequently formed a double top on the hourly chart. Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125, said Rupak De, Senior Technical Analyst, LKP Securities.

"Conversely, a break below the support level at 21,500 could indicate a bearish momentum. In the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond," he said.

Nifty Bank outlook
Bank Nifty witnessed selling pressure from the 46,900-47,000 zone which coincided with the 61.82 per cent Fibonacci retracement level of the entire fall it has witnessed from 48,636-44,429, said Jatin Gedia, Technical Research Analyst at Sharekhan. "The Bank Nifty is likely to enter into a consolidation phase in the range 47,000-45,500 from a short-term perspective," he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 38.50 points, or 0.18 per cent, lower at 21,921, hinting at a negative start for the domestic market on Monday.

Asian shares fall in early trade
Asian shares fell on Monday and the dollar climbed after a robust US jobs report dashed any expectations of a near-term interest rate cut from the Federal Reserve, while stocks in China remained on the back foot on weak sentiment. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.75 per cent. Japan's Nikkei jumped 0.50 per cent; Australia's ASX 200 dropped 0.93 per cent; New Zealand's DJ fell 0.43 cent; China's Shanghai tanked 1.88 per cent; Hong Kong's Hang Seng tanked 0.57 per cent; South Korea's KOSPI plunged 1.45 per cent.

Oil prices inch higher
Oil prices were tentative following fresh strikes in Tehran-aligned factions in Iraq, Syria and Yemen over the last two days by the United States, with rising tension in the Middle East keeping risk appetite in check. US crude rose 0.21 per cent to $72.43 a barrel and Brent was at $77.58, up 0.32 per cent to start the week as escalating geopolitical tension and its repercussions on oil supply boosted prices.

Dollar scales fresh 8-week peaks
The dollar rose to an eight-week high against its major peers on Monday as traders clawed back bets for aggressive rate cuts by the Federal Reserve this year in view of a still-resilient US economy. The dollar index peaked at 104.18, its highest since December. The Japanese yen was last 0.15 per cent lower at 148.58 per dollar. The euro bottomed at a more than one-month trough of $1.07675 against a stronger greenback. Sterling was sitting at $1.2600.

Wall Street shares ends higher
US stocks ended sharply higher on Friday and the S&P 500 registered an all-time closing high as strong earnings and a blowout January employment report boosted confidence in the economy, even while lowering the likelihood that the Federal Reserve will cut interest rates any time soon. The S&P 500 climbed 1.07 per cent to end the session at 4,958.61 points. The Nasdaq gained 1.74 per cent to 15,628.95 points, while Dow Jones Industrial Average rose 0.35 per cent to 38,654.42 points.

Q3 results today
Bharti Airtel, Varun Beverages, Ashok Leyland, Linde India, BSE, Kansai Nerolac Paints, KPR Mill, Tata Chemicals, Cholamandalam Financial Holdings, Alembic Pharmaceuticals, GE T&D India, Suven Pharmaceuticals, Triveni Turbine, Man Infraconstruction, CCL Products India, TVS Supply Chain Solutions and Avanti Feeds are among the companies that will announce their results for the December 2023 quarter today.

Apeejay Surrendra Park Hotels IPO opens today
The Rs 920-crore initial public offering (IPO) of Apeejay Surrendra Park Hotels shall open for bidding on Monday, February 5 and can be subscribed till Wednesday, February 7. The hotel chain player will be offering its shares in the price band of Rs 147-155 apiece with a lot size of 96 equity shares and its multiples thereafter.

Stocks in F&O ban
Five stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday, February 5. The new entrants - Hindustan Copper - will join the existing retention Steel Authority of India (SAIL), India Cements, Indus Towers, Zee Entertainment Enterprises (ZEEL) in the list. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment.

FPIs buy shares worth Rs 71 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 70.69 crore on Friday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 2,463.16 crore. After dumping Indian equities worth Rs 25,744 crore in January, overseas investors have pumped Rs 2053 crore in the local shares in the first two sessions of February.

Rupee ends flat against US dollar
The rupee surrendered early gains to settle flat at 82.98 against the US dollar on Friday, as a rise in crude oil prices negated the positive sentiment on strong domestic equities and a weak greenback overseas. Overall, the interim Budget 2024-25, especially the focus on fiscal prudence, has left a positive impact on the domestic currency, forex traders said.


Note: With inputs from PTI, Reuters and other agencies

Also read: Adani Ports, NTPC, Bharti Airtel: Trading strategies for these buzzing blue-chip stocks