SGX Nifty hints at gap-down start for Sensex, Nifty; 5 things to know before market opens

Nifty futures were trading 18 points or 0.12 per cent down at 14,976.50 on Singaporean Exchange in early trade on Monday. Market participants will closely watch rising bond yields, fresh spike in COVID-19 cases, GDP data, oil prices, rupee movement and other global cues. In the previous week, headline indices fell 1.2 per cent. On Friday, the domestic reason for the sharpest drop was the sudden jump in the 10 years GSec prices from 6.02 to 6.13. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said that the strategy should be to buy strong and heavyweight companies between 14850/50500 and 14750/50200 levels with a stop loss at 14600/49750.

FPIs invest over Rs 24,000: Foreign portfolio investors (FPIs) invested Rs 24,965 crore in Indian markets in February so far. According to depositories’ data, FPIs pumped in Rs 24,204 crore into equities and Rs 761 crore in the debt segment, taking the total net investment to Rs 24,965 crore during February 1-19.

Global watch: Asian stock markets were trading mixed in early trade on Monday with the Shenzhen component down 1.5 per cent. Japan’s Nikkei 225 gained 1.08 per cent, while the Topix index gained one per cent. South Korea’s Kospi also traded 0.37 per cent higher. Stocks on Wall Street ended up in overnight trade on Friday. The Dow Jones Industrial Average edged up 0.98 points and the Nasdaq Composite added 9.11 points. The S&P 500 dropped 7.26 points, or 0.19%, to 3,906.71.

FII, DII trends: On Friday, foreign institutional investors (FIIs) net bought shares worth Rs 118.75 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 1,174.98 crore in the Indian equity market.

Nifty support, resistance levels: Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said that Technically, Nifty formed a Bearish candle on daily scale and a Bearish Engulfing candle on weekly scale. “It continues its formation of lower highs – lower lows of the last three trading sessions. Now, till it remains below 15150, weakness could continue towards next key support of 14800-14700 while on the upside hurdles are seen at 15250-15400,” he added.

Crude oil prices: International oil prices have started higher this Monday morning in Asian trade. Domestic crude could start higher this Monday morning, tracking overseas prices. “Technically, MCX Crude Oil March could see some sideways to marginal upside momentum above 4300 levels where support is at 4270-4230 levels. Resistance is at 4370-4420 levels,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.