Global markets: SGX Nifty to US dollar — key triggers for Indian stock mkt today

Global market today: Key benchmark indices of the US stock market ended red after retreat in US dollar price from one year lows. After hitting one year low of 100.80 levels, Dollar Index rebounded strongly on Friday deals and regained 101 levels. In early morning deals on Monday in Asian stock market, Dollar Index has gained further signaling more selling pressure on other assets. SGX Nifty today opened lower and went on to hit intraday low of 17,780 levels. Oil prices fell slightly in morning deals at Asian share market.

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

US stock market

On Wall Street, all three key bench mark indices finished red on Friday. Dow Jones index fell 0.42 per cent, S&P 500 went off 0.21 per cent whereas tech heavy weight Nasdaq corrected 0.35 per cent.

“Due to rise in US dollar rates, global bourses are expected to remain volatile but major cue is expected to come from Dow Jones index, which has immediate support placed at 33,850 while major support is at 33,500. Likewise, Dow Jones is facing immediate hurdle at 34,400 levels while 34,750 is major hurdle for the index visible on chart pattern,” said Anuj Gupta, Vice President — Research at IIFL Securities.

US dollar rate

After bouncing back from one year low, US dollar continue to attract buying interest of currency market bulls during early morning deals on Monday. In early morning session, Dollar Index shot up 0.16 per cent to 101.450 levels.

On reason for rise in US dollar rate, market expert Sugandha Sachdeva said, “It was basically hawkish comments from one of the US Fed officials that supported strength in the greenback across the board.”

“US dollar is is expected to remain a sell on rise asset. Dollar Index has immediate support placed at 100 levels and on breaching this levels we may expect the index to go down at 98 and 96 levels respectively,” predicted Anuj Gupta of IIFL Securities.

Due to rise in US dollar rate, SGX Nifty today opened lower at 17,813 and went on to hit intraday low of 17,780 levels, logging around 0.50 per cent dip from its previous close.

On does this SGX Nifty opening suggest, Anuj Gupta said, “SGX Nifty today opened lower due to rise in US dollar price in early morning deals in Asian market, which suggests weak opening on Dalal Street.”

Asian stock market

In early morning session, Japanese Nikkei lost 0.11 per cent, Shanghai index shot up 0.57 per cent, Hong Kong’s Hang Seng added 0.25 per cent while South Korean KOSPI lost 0.14 per cent.

Crude oil price

Oil prices fell slightly in early morning deals on Monday as Brent crude oil price corrected around 0.4 per cent and hit $86.25 per barrel while WTI crude oil price 0.1 per cent to $82.36 per barrel levels.

US bond yield

In early morning session, US 10 year bond yield slipped 0.32 per cent to 3.511 levels while US 30 year bond yield went off 0.08 per cent to 3.734 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.

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