“We expect domestic as well as global markets to remain under pressure. The action is likely to continue in the broader market along with sectorial rotation,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Option data suggests a broader trading range in between 19000 to 19600 zones while an immediate trading range in between 19100 to 19500 zones.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded 5 points, or 0.03 per cent, lower at 19,324.50, signaling that Dalal Street was headed for flat start on Monday.
- Tech View: The short term trend of Nifty continues to be weak with range-bound action. There is a possibility of a downside breakout of the immediate support of 19250 levels and the index could slide down to another base area of 19100-19000 levels in the near term. Any upside bounce could find resistance around 19400 levels.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 0.8% to settle at 12.14 levels.
US stocks flat
The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week’s speech by Federal Reserve Chair Jerome Powell.
- Dow rises 0.07%,
- S&P 500 down 0.01%,
- Nasdaq dips 0.2%
Asian stocks mixed
Most stocks in Asia traded mixed as investors await key data on Chinese loan rates for signs of further measures to support an ailing economy.
- S&P 500 futures were little changed as of 9:12 a.m. Tokyo time. The S&P 500 was little changed Friday
- Nasdaq 100 futures rose 0.2%. The Nasdaq 100 fell 0.1%
- Japan’s Topix index rose 0.3%
- Australia’s S&P/ASX 200 Index was little changed
- Hong Kong’s Hang Seng futures fell 0.6%
Oil prices flat
Oil prices were steady on Monday with Brent staying above $80 a barrel, as investors balanced tightening supply driven by OPEC+ cuts with nagging concerns about global demand growth amid high interest rates.
Dollar gains
The dollar began on a firm footing on Monday, following five straight weeks of gains, as investors looked ahead to Federal Reserve’s Jackson Hole symposium for a guide on where rates might settle when the dust of this hiking cycle clears.
FII/DII action
Foreign portfolio investors turned net sellers at Rs 266.9 crore on Friday. DIIs too sold shares worth Rs 339 crore.
Rupee
The Indian rupee ended stronger on Friday at 83.10, aided by the softness in US treasury yields and some easing in the dollar