Despite encouraging signals from the global market, the Indian benchmark indices are predicted to open flat. The markets are extremely pessimistic as a result of Friday’s final hour of selling. Due to the severe selling and the important events that are scheduled for this week, investors are still apprehensive.
Due to uncertainties in the Middle East and the lack of a concluded accord, Brent crude oil prices increased 1.2% on Monday morning to about $93 per barrel. Both parties exchanged recommendations throughout the weekend in an effort to amend the agreement.
Following the strong gains of the previous week, US stock market futures opened higher on Monday. The Dow Jones reached a new record high on Friday after rising 0.7%. The S&P 500 and NASDAQ both increased by 0.2% in the meantime. For the next market trigger, investors will now concentrate on the non-farm payroll data and the Federal Reserve’s policy statement.
The surge in IT stocks boosted the Korean and Japanese markets on Monday morning, continuing Asian markets’ record run. The Nikkei in Japan increased by 1%, the Kospi in Korea increased by 4%, and the Hang Seng in Hong Kong increased by 0.4%.
Monday morning’s flat trading of GIFT NIFTY futures suggested a quiet start for the NIFTY50. Investors will wait for the RBI’s policy decision, which will be revealed later this week, in addition to global indications.
In the last hour of trade on Friday, the NIFTY50 index reversed weekly gains, closing 0.7% lower. The major support levels on the technical charts were broken by a violent selloff that occurred across the index heavyweights. The first critical support level, the 20 EMA of 23,800, was closed below by the index. The 50 EMA level of 24,000, which is still a significant barrier, was never crossed by the index during last week’s turmoil.
The NIFTY50 index’s open interest structure was altered by Friday’s final hour of selling. Strong open interest increase and concentration were observed in the 23,700, 23,800, 23,900, and 24,000 calls; 24,000 CE had the most open interest, suggesting limited upside for the NIFTY50. Conversely, 23,000 puts have the most open interest, suggesting a near-term support for the NIFTY0’s expiration tomorrow.
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