SGX Nifty hinted that the domestic equity indices could see a start in the red, snapping the gaining streak of the domestic indices. On the Singapore Exchange, Nifty futures were trading lower by 69 points, at the 17,093 level. On Friday, markets extended their winning streak for a second day as Nifty reclaimed the 17,100 level while Sensex closed 355 points up, at 57,989.
“Following the sharp rebound in the global markets, the domestic indices took a breather in hopes of relief from the global banking turmoil. Global equities reversed their selling streak on reports of a rescue package for the beleaguered First Republic Bank, along with an aid provided to Credit Suisse from the Swiss Central Bank, which would soothe concerns over the global financial stability. On the other hand, the ECB further raised its rates by 50 bps, indicating its preparedness to provide liquidity to banks upon necessity,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Stocks in Asia-Pacific traded mixed on Monday, despite negative cues from Wall Street. Japan’s Nikkei 225 traded lower by 0.62%, and South Korea’s Kospi lost 0.18% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded up by 0.44% and 0.16%, respectively. Hong Kong’s Hang Seng index sank 1.52%.
Crude Oil
Oil prices rose on Monday after suffering their biggest weekly loss in months as UBS struck a deal to buy Credit Suisse and some of the world’s largest central banks sought to reassure and stabilise global financial markets.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 1,766.53 crore, while domestic institutional investors (DII) net acquired equities worth Rs 1,817.14 crore on 17 March, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has GNFC and IndiaBulls Housing Finance on its F&O ban list for 20 March. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Technical View
“A small body of a negative candle was formed on the daily chart with a long lower shadow. Technically, this pattern indicates a formation of long legged doji type candle patterns (not a classical one). Hence, we observe the back to back doji pattern in the last two sessions. The current market action suggests that the market is in the process of near term bottom formation. One may expect Nifty to move up from here towards the next overhead resistance of 17,300-17,350 levels by next week. Immediate support is at 16,950 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
FPIs net sellers
“FPIs have invested a total amount of Rs 11344 crores till 18th March. This includes the bulk investment of Rs 15446 crores by GQG in Adani stocks. So, net of the bulk deals the FPI is negative. For 2023, so far, FPIs have sold equity for Rs 23283 crores (NSDL). FPIs have been consistent buyers only in capital goods. In financial services they have been alternating between buying and selling in different fortnights. Since risk off is the dominant market mood now following the bank failures in the US and fears of contagion, FPIs are unlikely to turn buyers in the near-term,” saidV K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Credit Suisse/UBS
In an attempt to prevent further market-shaking turbulence in the global banking industry, Swiss regulators organised a merger; UBS agreed to acquire rival Swiss bank Credit Suisse for $3.23 billion in stock and to take on up to $5.4 billion in losses. In the all-share sale, Credit Suisse’ valuation tanked, it is now valued at around one-fourth of what it was at the close of the trading session on March 17, when its market-cap was around $8 billion.