Indian market started the week on a strong footing and is expected to maintain a positive bias, supported by encouraging Q1 earnings, easing crude oil prices and improving global risk sentiment. Investors will monitor the ongoing RBI's monetary policy meeting, developments in the US-Iran conflict, crude oil prices and the ongoing earnings season for further direction.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded lower by 20.5 points, or 0.08 per cent, at 24,644.50, signaling that Dalal Street was headed for a muted start on Tuesday.
- Tech View: The index has rebounded after nearly two months of consolidation, delivering a decent recovery despite the prevailing subdued market sentiment. However, based on the closing price-adjusted chart, the index has rallied up to its 200-day moving average (200DMA), which is a crucial resistance level.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 1.5% to settle at 11.92 levels.
Also Read: Ahead of Market: 10 things that will decide stock market action on Tuesday
US stocks gain
U.S. stocks started August on a strong footing, with the Dow Jones Industrial Average closing at a record high as easing U.S.-Iran tensions drove oil prices and Treasury yields lower. Crude oil fell about 5% after U.S. President Donald Trump said talks with Iran on reopening the Strait of Hormuz were set for Monday, although Tehran denied any such negotiations were scheduled. The decline in oil prices eased inflation concerns, weighing on Treasury yields even as investors assessed the likelihood of a Federal Reserve rate hike if the Iran conflict drags on.
Asian shares climb
Asian shares climbed, following a Wall Street rally driven by gains in technology stocks. The yen steadied after its intervention-led gains.
- S&P 500 futures were little changed as of 9:07 a.m. Tokyo time
- Hang Seng futures were little changed
- Japan’s Topix fell 0.3%
- Australia’s S&P/ASX 200 rose 0.2%
- Euro Stoxx 50 futures rose 1.3%
Oil rises
Oil prices rebounded slightly on Tuesday, after plunging in the previous session, on concerns Middle Eastern supply remains at risk as a diplomatic resolution to the U.S.-Iran war that has disrupted shipments still seems unlikely.
Yen up
The yen held on to most of its intervention-driven gains on Tuesday, after last week's joint action by Tokyo and Washington to shore up the currency kept speculators wary of rebuilding bearish positions.
Gold steady
Gold held steady on Tuesday as investors monitored conflicting signals on possible U.S.-Iran talks and looked ahead to a slew of U.S. jobs reports for clues on the Federal Reserve's interest-rate path.
Stocks in F&O ban today
NIL
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 rupee ended little changed on Monday, retreating from a three-week high hit in early trade, as dollar demand from importers and state-run banks gathered pace, blunting the boost from a sharp fall in oil prices.
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