SGX Nifty up 40 points; here's what changed for market while you were sleeping

The domestic equities may open with a positive bias but the weakness in global markets indicates another subdued trading session. Options data indicates 18000-18400 as the trading range for the Nifty 50.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 38.5 points, or 0.21 per cent, higher at 18,243.50, signaling that Dalal Street was headed for a positive start on Tuesday.

• Tech View: Charts indicate the ongoing downward correction in the market. Nifty 50 has been making lower highs on the daily scale in the last three trading sessions, therefore, it needs to cross and hold above 18200-18250 levels, for an upmove towards 18350.
• India VIX: The risk-off mood lifted the volatility index by 2.8% to 14.80 points on Monday.

US stocks slip
Wall Street's main indexes ended Monday roughly down on fears that China could resume stricter measures to fight COVID-19 after it said it faces its most severe test of the pandemic.

• Dow down 0.13%
• S&P 500 dips 0.39%
• Nasdaq falls 1.09%

Asian stocks mixed
Asian shares were on the defensive on Tuesday as a COVID-19 resurgence in China increased concerns that Beijing may reimpose strict pandemic curbs and that further restrictions could cause supply chain disruptions.

• S&P 500 futures were little changed of 8:14 a.m. in Tokyo. The S&P 500 fell 0.4% Monday
• Nasdaq 100 futures were little changed. Nasdaq 100 fell 1.1%
• Nikkei 225 futures rose 0.3%
• Hang Seng Index futures fell 0.3%
• Australia’s S&P/ASX 200 Index rose 0.4%

Dollar steadies
The dollar pared some of its strong overnight gains on Tuesday after investors flocked to the safe-haven currency on nerves over China's COVID flare ups, though cautious risk sentiment kept the greenback in demand.

• The euro was little changed at $1.0241
• The Japanese yen was little changed at 142.09 per dollar
• The offshore yuan was little changed at 7.1772 per dollar
• The Australian dollar was little changed at $0.6606

Oil rises
Oil prices rose slightly in early Asian trade on Tuesday, a day after Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies.

Brent crude futures rose 17 cents, or 0.2%, to $87.62 by 0007 GMT. U.S. West Texas Intermediate (WTI) crude futures for January began trading Tuesday, rising 7 cents, or 0.1%, to $80.11 a barrel.


FII/DII action
Foreign portfolio investors (FPIs) on Friday net sold shares worth Rs 1,594 crore, provisional data showed. DIIs, however, purchased shares to the tune of Rs 1,263 crore.

Stocks in F&O ban today
Escorts, Gujarat Narmada Fertilisers, Indiabulls Housing Finance, Punjab National Bank, and Sun TV Network. 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 unit fell against the dollar on Monday amid strength in the green back in the overseas markets. It settled at 81.79 against the dollar, against 81.68 on Friday.

Macro news
Saudi Arabia and other OPEC oil producers are discussing increasing oil output, according to delegates, a move that could help heal the rift with US President Joe Biden’s administration, according to The Wall Street Journal

IPO LISTING
Kaynes Technologies is likely to witness stellar listing on Dalal Street, as indicated by the trends in the grey market. The stock was trading at a premium of Rs 200 to its issue price of Rs 587.

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