Surging crude oil prices, weakness in Niftys short-term technical charts, March quarter earnings and jitters ahead of assembly elections in Karnataka are likely to keep the domestic market volatile this week.
Lets check out what all might matter to Dalal Street on Monday:
Singapore trading sets stage for flat start
Nifty futures on the Singapore Stock Exchange were trading 8.50 points, or 0.08 per cent, higher at 10,675, indicating a flat start for the Nifty50.
Nifty50 forms 'Three Black Crows
The 'Three Black Crows' formation on the daily scale signals that the bears are tightening their grip on the market at higher levels, said Chandan Taparia of Motilal Oswal Securities. He, however, noted that the index has been respecting its support levels.
“It has been making lower highs and lower lows for last two sessions. As long as it holds below 10,638, weakness could be seen till 10,550 and 10,500 levels. On the weekly chart, the index closed in the negative after positive close for five weeks. This indicates a pause in positive momentum and requires some consolidation to kick off the next upward move,” Taparia said.
Asian shares trade mixed
Asian shares crept higher on Monday after a tame reading on US wages lessened the risk of faster rate hikes by the Federal Reserve, although Sino-US trade tensions and a looming deadline for the Iranian nuclear deal argued for caution, Reuters reported. The early action was limited with MSCIs broadest index of Asia-Pacific shares outside Japan index up 0.2 per cent. Japan's Nikkei index was flat, while Australian stocks added 0.3 per cent
Oil prices near 2014 highs
Oil markets were steady on Monday, with prices near late-2014 highs as a decision looms on whether the United States walks away from a deal with Iran and instead re-imposes sanctions on Tehran, Reuters reported. Brent crude oil futures were at $74.87 per barrel at 0117 GMT, unchanged from their last close. US West Texas Intermediate (WTI) crude futures up 4 cents, at $69.76 per barrel. WTI on Friday hit its highest level since November 2014.
US stocks settled higher on Friday
The Dow Jones Industrial Average index advanced 332.36 points, or 1.39 per cent, to settle at 24,262.51 on Friday. The S&P500 index added 33.69 points, or 1.28 per cent, to close at 2,663.42. The Nasdaq Composite index jumped 121.47 points, or 1.71 per cent, to 7,209.62.
Key Q4 earnings today
ICICI Bank, Pfizer, Exide Industries, Tata Chemicals, Tata Coffee, Vijaya Bank, Inox Leisure and Zee Learnwill be among the companies scheduled to report their quarterly numbers during the day.
Kochhar issue not on ICICI board agenda
The board of ICICI Bank is set to meet on Monday to discuss annual accounts and other “routine” matters. Absent from the agenda is any discussion of the conflict-of-interest accusations against chief executive Chanda Kochhar stemming from loans given to the defaulting Videocon group. To be sure, it could still be debated by board members with the permission of chairman MK Sharma.
Speculative interest soars on PCJ counter
PC Jeweller (PCJ), which has been in the news for its steep share price correction since April 20, is witnessing trading volumes far in excess of that on marquee counters like HDFC Bank, TCS and SBI put together. This hints of huge speculative activity. The extent of trading interest on PCJ was seen by its deliverable quantity to traded quantity being below 10 per cent on the NSE on Friday. The traded value of PCJ shares was a whopping Rs 2,738.5 crore, almost equal to its free float market cap of Rs 2,755 crore.
FPIs sold Rs 1,628 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 1,628.23 crore worth of domestic stocks on Friday, provisional data available with BSE suggested. DIIs were net sellers to the tune of Rs 1,084 crore, data suggested.