Top 10 things to know before the market opens

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© Nishant Kumar Top 10 things to know before the market opens

The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with an 89-point gain.

On January 7, the BSE Sensex rallied 142.81 points to 59,744.65 while the Nifty50 climbed 66.80 points to 17,812.70 and formed Doji kind of pattern on the daily charts. Meanwhile, there was bullish candle formation on the weekly scale. The index gained 2.6 percent during the week.

According to pivot charts, the key support levels for the Nifty are placed at 17,709.87, followed by 17,607.03. If the index moves up, the key resistance levels to watch out for are 17,910.27 and 18,007.83.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

Wall Street’s main indexes were mixed in choppy trading on Friday after data pointed to weaker-than-expected job growth last month, further fuelling bets of an aggressive monetary policy tightening by the Federal Reserve.

The Dow Jones Industrial Average was up 75.05 points, or 0.21%, at 36,311.52, the S&P 500 was down 9.13 points, or 0.19%, at 4,686.92, and the Nasdaq Composite was down 104.61 points, or 0.69%, at 14,976.26.

Asian Markets

Asian share markets were muted on Monday as investors count down to another US inflation reading that could well set the seal on an early rate hike from the Federal Reserve, lifting bond yields and punishing tech stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan was near flat, while South Korea lost 0.7%. Japan’s Nikkei held steady for now, after falling 1.0% last week.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with an 89-point gain. The Nifty futures were trading at 17,946 on the Singaporean Exchange at around 07:20 hours IST.

Oil drops for 2nd session on concerns over rising COVID-19 cases

Oil lost more ground on Monday as rapidly climbing cases of the Omicron COVID-19 variant hit economic activity, although losses were curbed by supply disruptions in Kazakhstan and Libya.

Brent crude slid 38 cents, or 0.46%, to $81.37 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 34 cents, or 0.43%, to $78.56 a barrel.

US employers add 199,000 jobs as unemployment falls to 3.9%

US employers added a modest 199,000 jobs last month while the unemployment rate fell sharply, at a time when businesses are struggling to fill jobs with many Americans remaining reluctant to return to the workforce.

The Labor Department said Friday that the nation’s unemployment rate fell to a healthy 3.9 percent from 4.2 percent in November.

India’s forex reserves down by $1.466 billion to $633.614 billion

The country’s foreign exchange reserves declined by $1.466 billion to $633.614 billion in the week ended December 31, RBI data showed. In the previous week ended December 24, the reserves dipped by $587 million to $635.08 billion. It touched a life-time high of $642.453 billion in the week ended September 3, 2021.

During the reporting week ended December 31, the decline in foreign exchange reserves was on account of a fall in foreign currency assets (FCA), a major component of the overall reserves, Reserve Bank of India’s (RBI) weekly data released on Friday showed.

Omicron dents euro zone’s economic rebound; inflation at record high

Euro zone economic sentiment dropped more than expected last month while inflation hit another record high, indicating the economy is under renewed stress as surging coronavirus infections force governments to tighten restrictions.

With infections breaking records almost daily as the Omicron variant sweeps across Europe, growth is likely to take a hit around the turn of the year even though governments have largely avoided the debilitating measures that brought their economies to a standstill a year ago.

Japan’s Dec wholesale inflation seen staying near record high: Reuters poll

Japan’s wholesale inflation in December is expected to remain near a recent peak as companies hike prices to offset rising raw material costs, a Reuters poll showed on Friday.

The corporate goods price index (CGPI), a gauge of the prices companies charge each other for their goods, in December likely rose 8.8% from a year earlier, the poll of 17 economists showed.

FII and DII Data

Foreign institutional investors (FIIs) net bought shares worth Rs 496.27 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 115.66 crore in the Indian equity market on January 7, as per provisional data available on the NSE.

Stocks under F&O Ban on NSE

Two stocks – Delta Corp and RBL Bank – are under the F&O ban for January 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies