SGX Nifty down 60 points; here's what changed for market while you were sleeping

Weakness in US equities and a strength in the dollar is likely to exert selling pressure in domestic markets. However, analysts expect buying at lower levels, which could limit the downside in indices. Option data suggests a trading range of 18500 and 19000 for the Nifty 50. A major upmove in the market is expected after RBI’s policy action on Wednesday.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 61 points, or 0.32 per cent, lower at 18,749, signaling that Dalal Street was headed for a negative start on Tuesday.

• Tech View: Nifty 50 has to hold above 18600 level for an upmove towards 18880-19000 zones, whereas initial support is placed at 18550 level.
• India VIX: Amid bouts of selling in the market, the volatility gauge rose marginally in trade on Monday. The index ended 2% higher at 13.7325 points.

US stocks slide
U.S. markets ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China.

• Dow dips 1.4%
• S&P slips 1.79%
• Nasdaq down 1.93%

Oil prices rise
Oil prices edged higher on Tuesday, after a G7 price cap on Russian seaborne oil came into force on Monday on top of a European Union embargo on imports of Russian crude by sea.

Brent crude futures had risen 66 cents to $83.34 a barrel by 0108 GMT. West Texas Intermediate crude (WTI) rose 70 cents to $77.63 a barrel.

Futures fell more than 3% in the previous session, after U.S. service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path.

Asian stocks fall
Asian stocks followed US shares lower after unexpectedly strong services data bolstered the case for the Federal Reserve to deliver higher interest rates.

• S&P 500 futures rose 0.2% as of 10:27 a.m. Tokyo time. S&P 500 fell 1.8%
• Nasdaq 100 futures rose 0.3%. Nasdaq 100 fell 1.7%
• Japan’s Topix index was little changed
• South Korea’s Kospi index fell 0.5%
• Hong Kong’s Hang Seng Index fell 1.6%
• China’s Shanghai Composite Index fell 0.4%
• Australia’s S&P/ASX 200 Index fell 0.2%

Dollar holds firm
The U.S. dollar held firm against major peers on Tuesday, following its biggest rally in two weeks after strong services data in the United States fuelled bets the Federal Reserve may lift interest rates more than recently projected.



FII/DII action
Foreign portfolio investors (FPIs) on Monday net sold shares worth Rs 1,139 crore, provisional data showed. DIIs net bought shares to the tune of Rs 2,608 crore.


Stocks in F&O ban today
Delta Corp, Indiabulls Housing Finance, and Gujarat Narmada Fertilisers. 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.


Rupee: The Indian unit ended at a nearly two-week low against the dollar on Monday amid constant purchases of the greenback by foreign investors. The rupee settled at 81.7900 a dollar, compared to 81.3175 on Friday.


Macro news

• Exit polls predict a big win for the Bharatiya Janata Party in Gujarat, and a close race with the Congress in Himachal Pradesh.
• Growth in the US services industry unexpectedly accelerated in November, according to the Institute for Supply Management. The non-manufacturing purchasing managers' index rose to 56.5 from 54.4 in October.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)