Indian stock markets look set to open higher on Monday. GIFT Nifty on the NSE IX was trading 195 points, or 0.84 per cent, higher at 23,281 in early deals. That suggests the Nifty 50 and Sensex will begin the week on a positive note.
Domestic benchmarks ended the previous session higher and closed above key psychological levels. Continued buying in large-cap stocks supported the move. Even so, elevated Brent crude prices have kept macroeconomic worries alive and investors cautious.
What the charts say
Market analysts say the near-term bias is still corrective while the Nifty stays below a resistance zone. That zone is marked by last month’s high and the 50-day exponential moving average. A sustained move above it would suggest the downtrend is pausing.
The Relative Strength Index, a momentum gauge, has also seen a bullish crossover, which supports the case for further short-term strength. Analysts add that the outlook stays positive as long as the Nifty holds above its 20-day moving average and a crucial support zone.
India VIX, the market’s fear gauge, rose 1.2 per cent to 15.30.
Asian markets weak
Most Asian markets traded lower on Monday. Worries about whether the boom in artificial intelligence spending can last weighed on technology shares. The high price of oil also limited the appeal of government bonds as a safe haven.
Japan’s Topix and the Nikkei 225 futures each fell 0.6 per cent, while Australia’s S&P/ASX 200 lost 0.4 per cent. Among futures, Hang Seng contracts rose 0.2 per cent and S&P 500 contracts gained 0.3 per cent as of 9:57 a.m. Tokyo time. Euro Stoxx 50 futures were little changed.
Oil eases on diplomacy
Oil prices slipped by more than 1 per cent on Monday. Iranian and Qatari officials held a third straight day of talks aimed at a deal to end the US-Israeli war on Iran. Any lasting progress would be welcome news for India, which imports most of its crude.
Dollar steady, gold near a low
The dollar and other major currencies moved in a narrow range. Investors are waiting for this week’s US midterm elections, which could change the balance of power in Congress and control over federal spending.
Gold edged up in early Asian trade but stayed close to a one-year low. Persistent inflation worries have strengthened expectations that the US Federal Reserve could raise interest rates later this year, which reduces the metal’s appeal.
Stocks under F&O ban
Two stocks are in the futures and options ban period today: Kaynes and SAIL. A security enters this period when it crosses 95 per cent of the market-wide position limit.
Institutional flows and rupee
Foreign portfolio investors were net buyers of shares worth Rs 3,598 crore on Friday. Domestic institutional investors were net sellers to the tune of Rs 871 crore.
The rupee gained 50 paise to close at 94.76 against the US dollar on Friday. A positive trend in domestic equities and a softer dollar helped the currency.
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