GIFT Nifty up 88 points: Asian markets, crude oil prices, dollar movement, Q2 earnings & more

Bucking weak global cues, domestic equity benchmarks are likely to kick off the truncated week on a positive note. But high bond yields in the US and persisting concerns in the Middle-East may keep any upside capped. At home, investors will be reacting to quarterly earnings of YES Bank, ICICI Bank and Kotak Mahindra Bank, among others. Here's what you should know before the Opening Bell:

Nifty outlook
Jatin Gedia, Technical Research Analyst at Sharekhan said that the Nifty is trading at the crucial support zone of 19,530-19,500 where 61.82 per cent Fibonacci retracement level of a rise from 19,333-19,850 is placed. The hourly momentum indicator is showing a positive divergence however price confirmation is missing.
 
"The daily momentum indicator has triggered a negative crossover which is a sell signal. Considering prices are trading at crucial support levels only a breach below the 19,500-19,450 zone shall lead to a sharp decline. In terms of levels, 19,550-19,500 is the crucial support zone while 19,640-19,660 shall act as an immediate hurdle zone," he said.

Nifty Bank outlook
Amol Athawale of  Kotak Securities said that as long as Nifty Bank is trading below 44,500 or 50-day SMA, the weak sentiment is likely to continue. Below the said level, he sees the index falling to 200-day SMA or 43,200-43,000 level. On the flip side, Athawale sees a minor pullback rally above 43,900 level till the level of 44,300, he said.

GIFT Nifty signals a positive start
Nifty futures on the NSE International Exchange traded 87.50 points, or 0.45 per cent, higher at 19,514, hinting at a positive start for the domestic market on Monday.

Asia shares drift lower at open
Asian shares drifted lower on Monday as the risk of a wider conflict in the Middle East clouded sentiment in a week laden with data on US growth and inflation as well as earnings from some of the world's largest tech companies. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.38 per cent. Japan's Nikkei fell 0.39 per cent; Australia's ASX 200 dropped 0.79 per cent; New Zealand's DJ declined 0.27 per cent; China's Shanghai tumbled 0.77 per cent; Hong Kong's Hang Seng shed 0.65 per cent; South Korea's Kospi retreated 0.15 per cent.

Oil prices fall as West Asia tensions ease
Oil prices eased on Monday as aid convoys started to arrive in the Gaza Strip over the weekend amid diplomatic efforts to contain a conflict between Israel and the Palestinian Islamist group Hamas from spreading to the wider oil-rich region. Brent crude futures fell 60 cents to $91.56 a barrel and US West Texas Intermediate crude futures lost 61 cents to trade at $87.47 a barrel at 0038 GMT.

Dollar index steady at 106 level
Japan's yen took the spotlight in Asia on Monday, circling the 150-per-dollar level in a tug of war between investors betting on a further rise in dollar yields and those expecting Japanese authorities to intervene in markets. The week kicks off with growing worries about the Middle East conflict as Israel bombarded Gaza with air strikes early on Monday. The dollar index added 0.02 per cent to 106.19, with the euro down 0.07 per cent at $1.0586. The Japanese yen last traded at 149.83 per dollar.

Wall Street stocks end with big cuts
US stocks ended sharply lower for the day and week on Friday as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading. The S&P 500 and Nasdaq fell over a per cent each. Israel leveled a northern Gaza district as its conflict with Hamas intensified. The Dow Jones Industrial Average fell 286.89 points, or 0.86 per cent, to 33,127.28, the S&P 500 lost 53.84 points, or 1.26 per cent, to 4,224.16 and the Nasdaq Composite dropped 202.37 points, or 1.53 per cent, to 12,983.81.

Q2 results today
Torrent Pharmaceuticals, Lloyd Metals & Energy, PNB Housing Finance, Alok Industries, Mahindra Holidays & Resorts India, Kewal Kiran Clothing, Mahindra Logistics, New Delhi Television, NR Agarwal Industries and Aurum Proptech are among the companies which announced their earnings for the quarter ended on September 2023.

Stocks in F&O ban
One one stock- Indiabulls Housing Finance- has been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday, October 23. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under bad in the F&O segment.

FPIs buy shares worth Rs 456 crore
Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of Rs 456.21 crore on Friday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 8.53 crore. Overseas investors sold domestic equities worth Rs 12,146 crore in the month of October so far.

Rupee rises 1 paisa against dollar
The rupee edged up 1 paisa to close at 83.12 against the US dollar on Friday amid negative equity markets and rising crude oil prices. Foreign investors turning net buyers in the capital markets abd dollar selling by PSU lenders helped the local currency close in the green even as rising US bonds yields weighed on riskier assets and emerging market currencies, forex traders said.


Note: With inputs from PTI, Reuters and other agencies

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