Indian benchmark indices are set to kick off the week on with a gap-up opening tracking the firm global cues. Asian stocks were firmly up, whereas US stocks rallied sharply over the weekend trade. Back home, traders will now be focused on the Q3 earnings as TCS will announce its earnings today, officially starting the result season. Here’s what you should know before the opening bell:
Bears continue to have the upper hand as the benchmark index Nifty has been posting red candles for the last three days. The Nifty found support around the previous swing low on the daily timeframe, said Rupak De, Senior Technical Analyst at LKP Securities.
“The momentum indicator RSI is in bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as support for the falling Nifty; a decisive fall below the said level may take the index towards 17,500. On the higher end, resistance is visible at 18,000, above which a recovery may come,” he said.
Nifty futures on the Singapore Exchange quoted 127.5 points, or 0.71 per cent higher at 18,086.50, hinting at a strong start for the domestic market on Monday.
Asian shares rallied on Monday as hopes for less aggressive US rate hikes and the opening of China’s borders bolstered the outlook for the global economy.
Japan’s Nikkei gained 0.59 per cent, Hong Kong’s Hang Seng was surged 1.51 per cent; Australia’s ASX 200 jumped 0.68 per cent; New Zealand’s DJ was shed 0.02 per cent; Seoul’s Kospi zoomed 2.04 per cent; and China’s Shanghai was added 0.34 per cent.
Oil prices edged up on Monday, a day after travelers streamed into China following a reopening of borders that lifted the fuel demand outlook and partly offset concerns of global recession.
Brent crude futures had risen 53 cents, or 0.7 per cent, to $79.10 a barrel by 0114 GMT while US West Texas Intermediate crude was at $74.23 a barrel, up 46 cents, or 0.6 per cent.
Early Monday, the euro was holding firm at $1.0660 , having bounced from a low of $1.0482 on Friday. The dollar eased to 131.82 yen, away from last week’s top of 134.78, while its index was flat at 103.740 , reported Reuters.
Wall Street’s main indices all gained more than 2 per cent on Friday after December payrolls expanded more than expected even as wage increases slowed and services activity contracted, easing worries about the Federal Reserve’s interest rate hiking path.
Dow Jones Industrial Average index rallied 700.53 points, or 2.13 per cent, to 33,630.61; S&P500 index 86.98 points, or 2.28 per cent, at 3,895.08; and the Nasdaq Composite index surged 264.05 points, or 2.56 per cent, to 10,569.29.
Tata Consultancy Services (TCS) will announced its earrings for the December 2022 quarter, marking the official beginning of the result season. Other than TCS, a number of other companies will also announce their Q3 earnings.
Only one stock- Indiabulls Housing Finance- has added by National Stock Exchange (NSE) under F&O ban for Monday, January 9. 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.
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 2,902.46 crore on Friday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,083.17 crore. Global investors pulled out Rs 5,872 crore from the Indian equities in the month of January so far.
The rupee pared initial gains and settled 4 paise lower at 82.66 against the US dollar on Friday, tracking a rebound in the greenback overseas and a muted trend in domestic equities.
Forex traders said risk aversion in international markets and sustained foreign fund outflows weighed on investor sentiments, even as weak crude oil prices cushioned the downside.