This along with persistent selling by FIIs, rising crude prices, and a spike in bond yields dampened investors' sentiments.
"We expect weakness to persist in the market amid cautiousness ahead of the monthly F&O expiry this week,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Here's breaking down the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 59.5 points, or 0.30 per cent, at 19,669, signaling that Dalal Street was headed for negative start on Tuesday.
- Tech View: The index remained volatile before closing with a Doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600; a fall below 19,600 might initiate fresh shorts. On the higher end, resistance is placed at 19,755.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 2.25% to settle at 10.90 levels.
Wall Street's main indexes posted gains on Monday, with increases in Amazon.com shares and the energy sector, as Treasury yields rose further and investors looked to economic data and Federal Reserve policymakers' remarks later in the week for clarity on the path for interest rates.
Asian shares decline
Shares in Asia declined while Treasury yields and the dollar rose in a sign investors are yet to fully recalibrate interest rate expectations.
- S&P 500 futures fell 0.2% as of 9:41 a.m. Tokyo time. The S&P 500 rose 0.4%
- Nasdaq 100 futures fell 0.2%. The Nasdaq 100 rose 0.5%
- Hang Seng futures rose 0.2%
- Japan’s Topix fell 0.6%
- Australia’s S&P/ASX 200 fell 0.5%
- Euro Stoxx 50 futures were little changed
Oil prices slipped in early trade on Tuesday amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.
Dollar at 10-month high
The dollar stood by 10-month highs against a basket of major currencies on Tuesday, supported by U.S. bond yields scaling 16-year peaks, while the yen tiptoed deeper into the intervention danger zone.
Stocks in F&O ban today
1) Indiabulls Housing Finance
2) Canara Bank
3) Balrampur Chini Mills
5) Hindustan Copper
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Foreign portfolio investors were net sellers at Rs 2,333 crore on Monday. DIIs bought shares worth Rs 1579 crore.
The rupee declined by 19 paise to settle at 83.13 against the US dollar on Monday due to rising crude oil prices and a strong American currency against major rivals overseas.
The net long position of foreign portfolio investors changed to a net short of Rs 3542 crore on Monday.
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