MARKET REPORT
22 February 2021
Ali Abbas
Intern – Prashanti Forex
Indian Markets:
The Sensex and Nifty lost more than a percent in the week ended February 19, while BSE midcap and small-cap indices outperformed with gains of 0.63 and 1.23 percent, respectively. According to pivot charts, the key support levels for the Nifty are placed at 14,872, followed by 14,762.2. If the index moves up, the key resistance levels to watch out for are 15,117.8 and 15,253.8.
US Markets:
Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
The Dow Jones Industrial Average edged up 0.98 points to 31,494.32 and the Nasdaq Composite added 9.11 points, or 0.07%, to 13,874.46. The S&P 500 dropped 7.26 points, or 0.19%, to 3,906.71.
Asian Markets
Asian share markets inched higher on Monday as expectations for faster economic growth and inflation globally batter bonds and boost commodities, though rising real yields also make equity valuations look more stretched in comparison.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%, after easing from a record top late last week as the jump in U.S. bond yields unsettled investors. Japan’s Nikkei recouped 1.0% and South Korea 0.4%, while E-Mini futures for the S&P 500 were a fraction firmer.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the index in India with a 14 points gain. The Nifty futures were trading at 15,009 on the Singaporean Exchange around 07:30 hours IST.
Oil gains as US production slowly returns after freeze
Oil prices rose on Monday as the slow return of US crude output that was cut by frigid conditions raised concerns about supply just as demand is coming back from the depths of the coronavirus pandemic.
Brent crude was up 76 cents, or 1.2%, at $61.67 a barrel by 0104 GMT, after gaining nearly 1% last week. U.S. oil rose 74 cents, or 1.3%, to $59.98 a barrel, having fallen 0.4% last week.
Forex reserves down by $249 million to $583.697 billion
The country’s foreign exchange reserves fell by $249 million to $583.697 billion in the week ended February 12, RBI data showed on Friday. In the previous week, the reserves had declined by $6.24 billion to stand at $583.945 billion. It had touched a record high of $590.185 billion in the week ended January 29, 2021.
In the reporting week, the decrease in reserves was mainly due to a fall in the foreign currency assets (FCAs), a major component of the overall reserves. FCAs decreased by $1.387 billion to $540.951 billion, weekly data by the Reserve Bank of India (RBI) showed.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 118.75 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,174.98 crore in the Indian equity market on February 19, as per provisional data available on the NSE.
