Let’s check out what all might matter to Dalal Street through the day:
Singapore trading sets stage for flat opening
At 7.00 am, Nifty50 futures on the Singapore Stock Exchange were trading 9 points lower at 10,026, indicating a flat to negatove opening for the domestic market.
Nifty formed ‘Hammer’ pattern
The index made a Hammer pattern on the daily chart on Friday, suggesting the bulls were not ready to give in the psychological mark so easily. The index, meanwhile, snapped its higher low formation by falling below 9,950 level in intraday trade. Follow up buying could bring more clarity.
“The Nifty50 registered a Hammer formation on the charts, as it recoiled after retracing 62 per cent of its last leg of rally from the lows of 9,838 on lower time frame charts. Although this kind of formation should have bullish connotations going forward provided the index attracts a follow up buying in next trading session,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
Q1 nos from Indigo, UPL, Rel Power today
Aviation firm InterGlobe Aviation, power major Reliance Power, drug maker Torrent Pharma, midcap IT firm Hexaware, FMCG firm GCPL, Agrochemicals firm UPL, boradcaster Music Broadcast and retail company Trent are some of the companies, which will report their quarterly results on Monday.
Infra output, euro zone data in focus
Data on domestic fiscal deficit for June and numbers on infrastructure output will be out post market hours on Monday. In euro zone, preliminary CPI numbers and unemployment data will be released.
Forex reserves at record high
India’s foreign exchange reserves rose by $2.2 billion to hit a record high of $391.3 billion during the week ended July 21, the Reserve Bank of India said on Friday. Taking advantage of a stock market rally coupled with a strong Rupee, market sources ET spoke to said that the central bank could be mopping up dollar reserves.
Crude saw biggest weekly gains in 2017
Oil ended its strongest week this year with a surge on Friday, built on receding fears of oversupply, as U.S. crude came within striking distance of $50 a barrel for the first time since the end of May. Traders attributed the activity to short-covering of previous bearish bets as oil finished higher in every session this week. US crude settled at $49.71 a barrel, up 67 cents, or 1.4 percent, and on the week gained nearly 9 per cent, Reuters reported.
ONGC seeks price freedom
State-owned Oil and Natural Gas Corp has sought pricing and marketing freedom to help bring to production a one-trillion cubic feet gas discovery that will open up a new sedimentary basin after over three decades. The refiner has made a significant natural gas discovery in the Gulf of Kutch of Gujarat coast that can produce about three million standard cubic meters per day, a senior company official said.
Chinese data releases today
The Chinese State Council will hold a press conference on Monday to discuss the nation’s first-half foreign trade performance, Global Times reported. China’s imports grew faster than exports in the first quarter, resulting in a 35.7-per cent contraction of the trade surplus, customs data showed in April. Exports in yuan-denominated terms rose 14.8 per cent year-on-year in the first quarter, while imports increased 31.1 per cent. Meanwhile Chinese PMI manufacturing readings for July could be out
An eye on geopolitical tensions
A top Russian diplomat on Sunday lambasted the United States Congress for voting to sanction Russia, and warned of retaliation by Moscow, Reuters reported. Meanwhile, the US conducted a successful test of its missile defence system in the Pacific Ocean on Sunday amid growing tensions with North Korea, agencies reported.
Airlines may hit air pocket
Domestic airlines will see “varying effects” on their profits in the coming years, as they will be required to show all aircraft leases on their balance sheets under a new accounting standard, according to experts. Leasing of aircraft rather than outright purchase is a common practice in the airlines industry worldwide. Once the new accounting standard is in place, the carriers would have to show all such leases on their respective balance sheets.
Asian markets subdued
Asian shares dipped on Monday following a lackluster end to last week globally on some earnings disappointments. Investors flocked to the Japanese yen and gold after North Korea conducted another missile test late on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 per cent. Japan’s Nikkei was little changed, with a firm yen offsetting data showing the country’s industrial output rebounded in June from a decline in May. Australian shares advanced 0.2 per cent.
US markets mixed
On Wall Street, the Dow industrials set a record closing high on Friday, helped by a 7.7 per cent jump in Verizon, following the top US wireless carrier’s quarterly earnings. The Dow rose 33.76 points, or 0.15 per cent, to close at 21,830, but the S&P500 lost 3.32 points, or 0.13 per cent, to 2,472. The Nasdaq Composite dropped 7.51 points, or 0.12 percent, to 6,374.