The commencement of the trading week in India witnessed a buoyant atmosphere in the domestic stock markets, aligning with the upward trajectory evident in global markets. As the week unfolds, investors are keenly anticipating the unveiling of India’s first quarter GDP data, a crucial insight into the country’s economic path.
Throughout the week, market participants are gearing up for a phase of consolidation, attributed to significant events that loom on the horizon. These encompass the release of domestic GDP statistics, the monthly contract expiration, and the revelation of macroeconomic data on both the domestic and international fronts.
Here’s a comprehensive overview of the pre-market developments:
Market Signals and Indicators
The GIFT Nifty, formerly recognized as the SGX Nifty, provided indications of a subdued kick-off to the trading day. Trading with a marginal dip at 19,350, the GIFT Nifty on the NSE IX alluded to a relatively muted opening on Tuesday.
Technical Insights and Outlook
While the broader market trend exhibits fragility, a pivotal observation revolves around the market’s capability to sustain levels beyond the 19,245 mark. Should the market successfully avoid descending below this threshold, the potential for a short-term rebound emerges. An intriguing aspect is the bullish crossover showcased by the RSI indicator. Immediate support is identified at 19,245, and a decisive breach below could potentially lead to heightened selling pressure. Conversely, resistance comes into play at 19,450.
The India VIX, a measure gauging market apprehension, underwent a modest uptick of 2.61%, culminating at 12.40 levels.
US Stock Market Performance
Wall Street concluded the preceding Monday on a positive note, propelled by notable gains in entities like 3M and Goldman Sachs. Investors’ focus is now intently fixed on pivotal inflation and job data scheduled for the week, affording insights into potential trajectories of the Federal Reserve‘s interest rates.
- S&P 500: Recorded an uptick of 0.63%
- Nasdaq: Marked an increase of 0.84%
- Dow: Secured gains amounting to 0.62%
Asian Market Dynamics
Asian markets emulated the upbeat sentiment witnessed in US equities. Market participants are meticulously monitoring upcoming economic indicators, seeking to decipher potential outlines of global central bank policies.
- S&P 500 Futures: Registered a marginal shift (S&P 500 surged by 0.6%)
- Nasdaq 100 Futures: Underwent a slight adjustment (Nasdaq 100 advanced by 0.7%)
- Japan’s Topix Index: Demonstrated growth of 0.2%
- Australia’s S&P/ASX 200 Index: Experienced minimal fluctuations
- Hong Kong’s Hang Seng Index Futures: Notched up an increase of 0.8%
Steadiness in Crude Oil Prices
Crude oil prices maintained a relatively stable stance, underpinned by divergent concerns. While apprehensions persist about potential US interest rate hikes denting demand, counterbalancing factors include worries about a tropical storm in the US Gulf Coast that could disrupt supply.
Restricted Stocks in F&O Segment
Several stocks currently find themselves under the F&O ban. Notable names on this list include:
- RBL Bank
- India Cements
- Sun TV
- GMR Infra
- Hindustan Copper
- Manappuram Finance
- Indiabulls Housing Finance
This restriction comes into effect when a security surpasses 95% of the market-wide position limit.
FII/DII Activity Snapshot
Foreign portfolio investors leaned towards selling mode, divesting shares worth Rs 1,393 crore on Monday. In contrast, domestic institutional investors (DIIs) showcased an inclination towards buying, accumulating shares worth Rs 1,264 crore.
The Indian rupee embarked on a narrow consolidation trajectory on Tuesday, eventually wrapping up the day with a marginal uptick of 1 paisa against the US dollar, settling at 82.63. However, the currency’s upward momentum was counteracted by the strength of the American dollar and the rebound in crude oil prices.
Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consider consulting a financial professional before engaging in algorithmic trading.