MARKET VIEW
GLOBAL MARKETS
US equity markets were closed on Monday because of Martin Luther King Jr Day holiday. Bond yields rose to 3.53%.
US$ index rebounded from 6-month lows of 101.5 to trade near 102.4. Crude oil remained range bound.
Nikkei rose 1.05%, leading gains in the region, and the Topix gained 0.73%. As the Bank of Japan kicks off its two-day monetary policy meeting, 10-year Japanese government bond yields will be in focus as it continues to test the upper ceiling of the central bank’s tolerance range.
INDIAN MARKETS
Sensex fell 168 points to 60,093, while the Nifty50 dropped 62 points to 17,895 and formed a bearish candle which, to some extent, resembles a Dark Cloud cover kind of pattern on the daily charts, indicating a bearish reversal signal. Banknifty dropped 204 points to 42167 formed a bearish candle on daily chart.
The sectors which outperformed were PSUBank, IT, Energy and the sectors that underperformed were Media, Metals & Auto.
Foreign institutional investors (FIIs) sold shares worth Rs 750.59 crore, domestic institutional investors (DIIs) managed to offset the FII outflow, to a major extent, by net buying shares worth Rs 685.96 crore.
TODAY’S VIEW
The market is expected to open in the flat/green as trends in the SGX Nifty indicate a positive opening for the broader index in India.
As per the pivot charts, we have the key support level for the Nifty at 17,858, followed by 17,812, and 17,737. If the index moves up, the key resistance levels to watch out for are 18,008, followed by 18,054 and 18,129.