The market is expected to open on a cautious note as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 18 points.
The Sensex dropped below 63,000 to close 416 points lower at 62,868, while the Nifty declined 116 points to 18,696 and formed a bearish candle on the daily charts.
As per the pivot charts, the key support for the Nifty is at 18,651, followed by 18,617 and 18,563. If the index moves up, the key resistance levels to watch out for are 18,760, 18,794 and then 18,848
The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
The Dow Jones Industrial Average rose 34.87 points, or 0.1%, to 34,429.88, the S&P 500 lost 4.87 points, or 0.12%, to 4,071.7 and the Nasdaq Composite dropped 20.95 points, or 0.18%, to 11,461.50.
Asian shares edged higher on Monday as investors hoped steps to unwind pandemic restrictions in China would eventually brighten the outlook for global growth and commodity demand, even if full freedom could be months away.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2%, after rallying 3.7% last week to a three-month top. Japan’s Nikkei was near flat, while South Korea dipped 0.1%. S&P 500 futures slipped 0.2%, while Nasdaq futures fell 0.1%.
Trends in the SGX Nifty indicate a cautious opening for the broader index in India with a gain of 18 points. The Nifty futures were trading around 18,843 levels on the Singaporean exchange.
Oil rises after OPEC+ holds oil output targets, China eases COVID curbs
Oil prices inched up in early trade after OPEC+ nations reaffirmed their oil output targets ahead of a European Union ban and price caps on Russian crude, which kick off on Monday.
Brent crude futures climbed 39 cents, or 0.5%, to $85.96 a barrel at 2309 GMT, while US West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.5%, to $80.35 a barrel.
Japan’s service-sector activity growth hits 3-month low
Japan’s service sector activity grew in November at the slowest pace in three months, as relentless inflation dampened a part of the economy that was benefiting from the return of domestic and foreign shoppers and easing COVID-19 restrictions.
The final au Jibun Bank Japan Services purchasing managers’ index (PMI) fell to a seasonally adjusted 50.3 from October’s 53.2, hitting the lowest since August. The index however stayed above the 50-mark that separates expansion from contraction for a third straight month and was slightly better than the flash reading of 50.0 for November.
India’s forex reserves rise for third week in a row
India’s foreign exchange reserves rose for the third consecutive week due to easing pressure on the rupee after comments from US Federal Reserve Chair about slower rate hikes and a fall in crude oil prices. During the week ending November 25, the forex reserve rose $2.89 billion to $550.14 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).
The uptick in the foreign exchange reserves is a result of the rise in the Foreign Currency Assets (FCA), which is a major component of the overall reserves. The FCA rose $3.00 billion to $487.29 billion for the week ending November 25.
FPIs turn net buyers in November; invest Rs 36,329 crore in equities
After pulling out money from Indian equities market in the past two months, FPIs made a strong come back in November with a net investment of Rs 36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends.
This was the third month (July, August and November) in this year when FPIs witnessed net inflows. Moreover, they started the month of December on a positive note. Going forward, flow trajectory is expected to remain positive in December.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 214.76 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 712.34 crore on December 2, provisional NSE data shows.
UK economy to shrink in 2023, risks ‘lost decade’: CBI
Britain’s economy is on course to shrink 0.4% next year as inflation remains high and companies put investment on hold, with gloomy implications for longer-term growth, the Confederation of Business Industry forecast on Monday.
“Britain is in stagflation – with rocketing inflation, negative growth, falling productivity and business investment. Firms see potential growth opportunities but … headwinds are causing them to pause investing in 2023,” CBI Director-General Tony Danker said.
The CBI’s forecast marks a sharp downgrade from its last forecast in June, when it predicted growth of 1.0% for 2023, and it does not expect gross domestic product (GDP) to return to its pre-COVID level until mid-2024.
Stocks on F&O ban list on NSE
The National Stock Exchange has retained Punjab National Bank, Delta Corp and Indiabulls Housing Finance on its F&O ban list for December 5. Securities thus banned include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
News source : Money Control News