SGX Nifty down 30 points; here's what changed for market while you were sleeping

Global markets will largely decide the course of trajectory for domestic equities, but analysts see “buy on dips” continuing to play in the market and keep the downside in indices limited. Positioning in the options of the Nifty 50 show that 18600-18700 will be the immediate upside target for the index, whereas 18300 is a crucial support as open interest is the highest in this strike price put option.

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 31 points, or 0.17 per cent, lower at 18,456, signaling that Dalal Street was headed for a negative start on Tuesday.

• Tech View: Nifty has formed a long green candle on the daily charts amid buying at lower levels. It has to hold above 18350 for an upmove towards 18500 and 18650 levels. Support is placed at 18350 and 18250 levels.
• India VIX: A sharp recovery in the market after losses last week pulled down the ‘fear gauge’ on Monday. The volatility index ended 3.7% down at 13.5525 points.

US stocks fall
Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession.

• Dow dips 0.49%,
• S&P down 0.90%,
• Nasdaq falls 1.49%

Asian stocks mixed
Asian share markets were trading mostly in negative territory on Tuesday, as investors anticipated a somewhat rocky road for China's unwinding of COVID restrictions and the prospect that U.S interest rates will rise higher than expected in 2023. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2% after U.S. stocks ended the previous session lower. The index is down 0.1% so far this month.

• S&P 500 futures rose 0.1% as of 8:13 a.m. in Tokyo. The S&P 500 closed down 0.9%
• Nasdaq 100 futures rose 0.2%. The Nasdaq 100 closed down 1.4%
• Japan’s Topix index rose 0.3%
• South Korea’s Kospi index fell 0.5%
• Australia’s S&P/ASX 200 Index fell 0.7%
• Hong Kong’s Hang Seng futures fell 0.8%

Oil climbs
Oil prices rose in early trade on Tuesday, shored up by a weaker dollar and a U.S. plan to restock its Strategic Petroleum Reserve, but gains were limited by uncertainty over the impact of rising COVID-19 cases in China, the world's top oil importer.

Brent crude futures advanced 61 cents, or 0.8%, to $80.40 a barrel at 0124 GMT, adding to a 76 cent gain in the previous session.

U.S. West Texas Intermediate (WTI) crude futures rose 65 cents, or 0.9%, to $75.84 barrel, after climbing 90 cents in the previous session.

Yen defensive
The yen retreated against the dollar on Tuesday ahead of a Bank of Japan policy announcement later in the day, with the central bank widely seen leaving ultra-easy stimulus settings unchanged.

The greenback also edged toward a one-week high versus a basket of major peers, supported by higher U.S. Treasury yields as investors continued to digest the Federal Reserve's message of higher interest rates for longer.


FII/DII action
Foreign portfolio investors (FPIs) on Monday net sold shares worth Rs 538 crore, provisional data showed. DIIs net bought shares to the tune of Rs 687 crore.

Stocks in F&O ban today
Balrampur Chini Mills, Bharat Heavy Electricals, Delta Corp, Indiabulls Housing Finance, Gujarat National Fertilizers. Indian Railway Catering and Tourism Corp, and Punjab National Bank. 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 higher against the dollar on Monday amid fall in crude oil prices, but gave up most of the intraday gains. The rupee settled at 82.7050 a dollar compared to 82.8700 a dollar in the previous session.

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