Domestic stocks are likely to open higher on Tuesday, tracking a positive trend in other Asian markets, ahead of the expiry of December series futures and options contracts later this week. Dollar edged lower, improving risk appetite. Technical charts, however, hints at a weak trend for equities. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty on Monday closed below the crucial resistance level of 18,070. It failed to reclaim the 50 EMA on the daily timeframe. The momentum indicator remains with a bearish crossover, implying weakness. The trend is likely to remain weak over the near term. The supports for the index are seen at 17,950 and 17,800. On the higher end, resistance is placed at 18,100, said Rupak De, Senior Technical Analyst at LKP Securities.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 43 points, or 0.24 per cent, higher at 18,072, hinting at a positive start for the domestic market on Tuesday.
Asian markets gain in early trade
Stock markets across Australia, Hong Kong, Canada, the UK and New Zealand, among others, are closed today on account of Christmas/ Boxing Day. Japan’s Nikkei was up 1.15 per cent, China’s Shanghai Composite rose 0.45 per cent, Taiwan’s Taiwan Weighted index advanced 0.66 per cent while South Korea’s Kospi added 0.55 per cent in early trade.
US stocks to resume trade
US stocks will resume trade on Tuesday after a long weekend. On Friday, the Dow Jones Industrial Average index rose 176.44 points, or 0.53 per cent, to 33,203.93, the S&P500 index gained 22.43 points, or 0.59 per cent, to 3,844.82, and the Nasdaq Composite index added 21.74 points, or 0.21 per cent, to 10,497.86.
Dollar retreats as risk appetite improves
The dollar moved broadly lower on Tuesday while Australia and New Zealand’s currencies jumped as risk appetite grew after China said it will scrap its Covid quarantine rule for inbound travellers – a major step towards easing curbs on its borders. The Sterling rose 0.16 per cent to $1.20865, while the euro edged 0.06 per cent higher to $1.06395. The New Zealand dollar surged 0.65 per cent to $0.63115 while the Aussie gained 0.25 per cent to $0.67485. Against a basket of currencies, the US dollar index steadied at 104.12.
Gold ticks up in light trade
Gold prices edged up in early Asian hours on Tuesday, helped by a softer dollar, although trading was thin after the long Christmas weekend. Spot gold was up 0.3 per cent at $1,802.63 per ounce. US gold futures rose 0.3 per cent to $1,810. Data on Friday showed US consumer spending rose 0.1 per cent in November after climbing 0.4 per cent in October, while inflation cooled further.
Stocks in F&O ban
Shares of Punjab National Bank are banned in the F&O segment today. 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.
DIIs buy shares worth Rs 1,286 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 497.65 crore on Monday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,285.74 crore.
Rupee rises 17 paise against dollar
The rupee appreciated 17 paise to close at 82.65 against the US dollar on Monday, tracking positive domestic equities and the weakening of the American currency in the overseas market. At the interbank foreign exchange market, the local unit opened at 82.79 and touched an intra-day high of 82.63 and a low of 82.83 against the greenback.
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