SGX Nifty to US dollar: Global market triggers that may dictate Dalal Street on Friday — 17th Feb

Here we list out important global market triggers that may dictate Indian stock market today:

US markets

US stocks dropped sharply on Thursday, coming under intense selling pressure and closed firmly in the red after two Federal Reserve officials said they were considering 50 basis-point interest rate hikes to battle persistently high inflation. Dow Jones dipped 1.26 per cent, S&P 500 index lost 1.38 per cent whereas tech heavy weight Nasdaq index crashed 1.78 per cent on Thursday.

US dollar

The US dollar edged higher on Thursday, refreshing its weekly peaks against most major rivals near 104.20 level but gave back some ground ahead of the Wall Street close amid the downbeat market mood. The US Producer Price Index (PPI) bolsters hawkish Federal Reserve bets and fuels US Treasury bond yields.

On reason for rise in US dollar rates, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “The firmer US data that allows the Fed policymakers to remain hawkish lend support to the US dollar and weighed heavily on the equity markets.”

Gold rate today

Gold price was little changed with a 0.02% gain for the day after regaining some upside traction and rebounded from $1,828 levels during US trading session, as the higher US PPI and renew hawkish bias for the Federal Reserve continued to exerted bearish pressure to the Gold price. Meanwhile, WTI Oil retreated lower with a 0.13% loss for the day.

On gold price outlook, Marc Despallieres said, “In technical perspective, the four-hour scale RSI indicator figured 44 as of writing, showing the gold pair was surrounded by modest headwind. As for the Bollinger Bands, the pair continued to trade in the lower area and failed to challenge the 20-period moving average several times. In our view, unless the pair could stand firmly in the upper area, the downside tendency would persist in the near future.”

SGX Nifty

In early morning deals, SGX Nifty today opened lower and went on to hit intraday low of 17,950. However, the index tried to breach its upper hurdle as it made intraday high of 18,124 during Friday morning deals. SGX Nifty is currently quoting below 18,000 at 17,982.

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Expecting tepid opening for SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Immediate support for SGX Nifty is placed at 17,850 whereas 17,700 is strong support for the index. On upper side, SGx Nifty is facing immediate hurdle at 18,100 whereas a decisive breach above 18,250 would trigger fresh upside movement. Till then, traders are advised to remain buy on dips strategy.”

Asian markets today

In early morning session on Friday, Japanese Nikkei is down 0.52 per cent, Hong Kong’s Hang Seng corrected 0.39 per cent, Shanghai index added 0.09 per cent while South Korean KOSPI dipped 0.69 per cent.

US bonds

US bond yield for 10 years maturity gained 1.27 per cent and climbed to 3.892 levels whereas US bond yield for 30 years shot up 0.57 per cent at 3.926 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.