SGX Nifty down 76 points: Asian markets mixed ahead of Fed meet; dollar falls, crude oil edges higher

Domestic stocks are all set to open lower on Monday amid  mixed global cues. US shares settled sharply lower on Friday after US unemployment data. Asian peers were trading largely mixed earlier today amid speculations the US Fed may go for aggressive rate hikes ahead. All eyes are on the US Fed’s emergency meeting. Here's what you should know before the opening bell:

Nifty outlook
Nifty is consolidating for the past many weeks and is gradually shifting the base lower, indicating a bearish-to-sideways momentum. The index has formed a Bearish Engulfing candlestick pattern and prices have closed  below its short-term averages EMA on the daily scale, said Rohan Patil, Technical Analyst at Samco Securities.

"The trend remains in a bearish mode where selling on the rise is advisable. The support for the Nifty is placed at around 17,250-17,200 levels and resistance is capped at 17,650-17,800 levels. In case the Nifty breaches below 17,200 levels, then 17,000 will be the next support zone. A strong break above 17,650 will indicate a strength to move higher," he said.

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange quoted 76 points, or 0.44 per cent, lower at 17,361.50, hinting at a negative start for the domestic market on Monday.

Asian shares mixed in early trade
Asian shares were trading mixed in early trading hours on Monday amid concern about financial stability, that investors speculated the Fed would now be reluctant to rock the boat by hiking interest rates aggressively. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.35 per cent. Japan's Nikkei plunged 1.69 per cent; China's Shanghai fell 0.72 per cent; Korea’s Kospi declined 0.58 per cent. Hong Kong's Hang Seng was up 1.04 per cent.

Oil prices edge higher
Oil prices edged higher, with Brent up 10 cents at $82.88 a barrel, while US West Texas Intermediate (WTI) crude rose 26 cents to $76.94 per barrel. Saudi Aramco, the world's largest oil company and currently the second most valuable company in the world, reported record profits of over $161 billion for 2022. The Saudi Arabian Oil Company announced a 50 per cent jump in its net profit on Sunday.

Dollar slides after SBV fallout
The US dollar slid on Monday as authorities stepped in to cap the fallout from the sudden collapse of Silicon Valley Bank (SIVB), with investors hoping the Federal Reserve will take a less aggressive monetary path. The dollar index fell 0.15 per cent at 104.08, whereas the Japanese yen strengthened 0.34 per cent to 134.52 per dollar. The euro was up 0.44 per cent to $1.069, while sterling was last trading at $1.2085, up 0.47 per cent on the day.

Wall Street stocks settle lower
US stocks closed sharply lower and Treasury yields extended their slide on Friday over fears of contagion in the financial sector and strong February employment data showing the economy added more jobs than expected. The Dow Jones Industrial Average fell 345.22 points, or 1.07 per cent, to 31,909.64, the S&P 500 lost 56.73 points, or 1.45 per cent, to 3,861.59 and the Nasdaq Composite dropped 199.47 points, or 1.76 per cent, to 11,138.89.

Stocks in F&O ban
Two stocks- Balrampur Chini Mills and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)- has been retained under F&O ban by National Stock Exchange (NSE) for Monday, March 13. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.

FPIs sell shares worth Rs 2,061 cr
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 2,061.47 crore on Friday. Domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 1,350.13 crore.

Rupee settled flat against dollar
The rupee pared its initial losses to settle flat at 82.06 against the US dollar on Friday, following a weak greenback in the overseas market amid a negative trend in domestic equities. At the interbank foreign exchange market, the local unit opened at 82.12 against the American currency and finally closed flat at 82.06 against the greenback.

Note: With inputs from PTI, Reuters and other agencies

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