Pre-market action: Here's the trade setup for today's session
markets succumbed to geopolitical concerns on Monday as indices remained under pressure throughout the session. Analysts said weakness was on account of the Iranian attack on Israel, persistent concerns over higher-for-longer US interest rates.
«We expect domestic markets to witness near-term headwinds amid rising volatility. With the start of result season and poll promises by several political parties, we may continue to see sector & stock-specific action,» said Siddhartha Khemka, Head — Retail Research, Motilal Oswal.
Here's breaking down the pre-market actions:
STATE OF THE MARKETS
- Tech View: On the daily charts, we can observe that Nifty is in the process of retracing the rise it has witnessed from 22710 – 22776. The key 50 and 61.82% Fibonacci retracement levels are placed at 22240 – 22117. Thus, in case of a bounce towards 22350 – 22370 it should be used as a selling opportunity, said Jatin Gedia of Sharekhan.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 8.5% to settle at 12.47 levels.
FII/DII action
Foreign portfolio investors were net sellers at Rs 3,268 crore for the second straight day. DIIs, meanwhile, bought shares worth Rs 4,762 crore.
Rupee
The rupee declined 6 paise to settle at 83.44 against the US dollar on Monday, in line with deep losses in equity markets and an elevated dollar against major rivals overseas amid geopolitical tensions.
FII data
The net long of FIIs turned from Rs 33448 crore on Friday.to net short of Rs 5,007 crore on Monday
Q4 results
Crisi
