D-St set for a negative opening as GIFT Nifty signals weak start

Indian equities ended marginally higher on Friday, with the Nifty gaining 0.1% to 23,898, supported by positive global cues and easing expectations of a near-term US Fed rate hike. Analysts say markets are likely to see some relief, supported by easing expectations of a near-term US Fed rate hike and softer global bond yields. However, elevated Brent crude around US$95/bbl and continued West Asian tensions remain key risks to the recovery.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 30 points, or 0.12 per cent, at 23,980, signaling that Dalal Street was headed for a negative start on Monday.

Tech View: The short-term trend is likely to remain weak as the index continues to trade below the 50-EMA on the hourly chart. A sell-on-rise sentiment may continue to prevail as long as the index remains below the 24,000–24,200 zone. On the lower end, support is placed at 23,830 and 23,700.

India VIX: India VIX, which is a measure of the fear in the markets, fell 5.8% to settle at 10.68.

Asian shares rally

Asian shares rallied on Monday as the robust US jobs report was seen as positive for global growth even as it narrowed the odds on a rise in interest rates, while oil edged higher after the US and Iran attacked ships in the Gulf.

• S&P 500 futures were little changed as of 9:39 a.m. Tokyo time
• Hang Seng futures were little changed
• Nikkei 225 futures (OSE) rose 1.9%
• Japan’s Topix rose 0.8%
• Australia’s S&P/ASX 200 rose 0.4%
• Euro Stoxx 50 futures were little changed

US stocks steady

Contracts for US stocks were steady after the tech-heavy Nasdaq 100 Index advanced 0.2% on Friday and the Philadelphia Semiconductor Index jumped 3.4%. There’s no cash trading of Treasuries Monday due to a US public holiday.

Dollar gets little lift

The dollar was on shaky ground on Monday, despite a ramp-up in US rate ​hike bets as Middle East tensions raised the ​prospect of broader inflationary pressures that could force global central banks to tighten policy ​in tandem.

Read more: CAS effect: Pre-open session rules to change from today. What changes for investors?

Oil gains

Oil prices extended gains on Monday as tit-for-tat strikes between the U.S. and Iran on vessels sailing in the Strait of Hormuz and other areas heightened concerns of a prolonged supply disruption from the Middle East.

Read more: Ahead of Market: 10 things that will decide stock market action on Monday

Stocks in F&O ban today

1) SAIL

2) LIC Housing Finance

3) Inox Wind

4) Kaynes

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action

Foreign portfolio investors net sold worth Rs 3,112 crore on Friday. DIIs, meanwhile, were net buyers at Rs 8,920 crore.

Rupee

The Indian rupee ended largely unchanged Friday, but posted its best weekly performance against the US dollar in five weeks, helped by stronger-than-expected dollar inflows into the central ‌bank’s special schemes.

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