Global market: SGX Nifty to US dollar — key triggers for stock market today

Global market today: US stock market ended higher on Friday as US dollar bounced back from its one month lower levels after the release of an upbeat US non farm payroll data. After drifting below the psychological 101 levels, Dollar Index once again regained the psychological mark and it has been sustaining above this levels till Monday morning deals. This rise in US dollar put gold price under pressure and gold rate today is close to its current support of $2,010 per ounce levels. SGX Nifty today opened higher but the index has been trading in small range.

Here we list out important global market triggers that may dictate Indian stock market today:

US stock market

After the announcement of an upbeat US payrolls data, US stock market witnessed strong buying interest among the Wall Street bulls. All key benchmark indices finished with handsome gains on Friday. Dow Jones Industrial Average index gained 1.65 per cent, S&P 500 index shot up 1.85 per cent whereas Nasdaq surged 2.25 per cent.

On why US stock market surged on Friday, Anuj Gupta, Vice President — Research at IIFL Securities said, "On Friday, upbeat US non-farm payroll data pushed US dollar rates higher leading to rise in the market sentiments on higher side. This put gold and other assets under pressure that also worked in favour of equities."

US dollar rate

After strong US payrolls data signaling a robust labour market. US dollar rebounded from its one month low. Dollar Index regained 101 levels on Friday and in early morning deals on Monday, the index is sustaining above 101 levels with some minor gains.

On US dollar vs INR, Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas said, "We expect Rupee to trade with a slight negative bias on risk aversion in global markets amid concerns over global economic slowdown and renewed fears over banking crisis in US. However, Dollar recovered slightly as Euro fell post ECB monetary policy. ECB hiked interest rates by 25 bps, its slowest pace since it started hiking rates, raising a caution. Traders may also take cues from US non farm payrolls data, which shows strength in the job market and is expected weaker than previous month. Any recovery in crude oil prices from lower levels may also weigh on Rupee at lower levels. We expect USDINR spot to trade in between 81.30 to 82.30 in the near term."

Asian stock market

In early morning session on Monday, Asian stock market has inched higher as market is expecting ease in the US inflation putting pressure on the US Fed to cut down interest rate. Global market is expecting 0.40 per cent rise in the US inflation during April, with the annual pace of core inflation slowing just a tick to 5.50 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.3%, while Japan's Nikkei eased 0.62 per cent. Hong Kong's Hang Seng gained 0.68 per cent whereas South Korean KOSPI shot up 0.92 per cent.

SGX Nifty today

In early morning Asian stock market session, SGX Nifty opened higher and went on to climb to intraday high of 18,185. However, the index is continuously trading in small 40 points range signaling sideways opening on Dalal Street.

"SGX Nifty is indicating sideways to positive trend on Monday. But, every dip is a buying opportunity and one should maintain the same on Monday as technical chart structure is looking positive and it may bounce back from the support levels," said Anuj Gupta.

Gold rate today

After climbing to life-time high of $2,081.80 per ounce levels last week, gold price came down towards its support at $2,010 levels last week as an upbeat non-farm payrolls date aided US dollar to rebound from its one month lows. In early morning Asian stock market trade, gold price slightly up at $2,017 per ounce levels.

On why gold price corrected on Friday, market expert Sugandha Sachdeva said, "The US non-farm payroll data for April was quite upbeat indicating a robust labor market. There have been job additions of 253,000 as against an estimate of 180,000 and the unemployment rate slumped to 3.4%, which led to a surge in the US treasury yields and triggered some profit booking in the precious metal towards the close of the week."

Crude oil price

In early morning session, WTI crude oil price is down 0.14 per cent to $71.18 per barrel whereas Brent crude oil price is 0.21 per cent down at $75.11 per barrel.

US bond yield

In early morning session on Monday, US 10 yar bond yield is down 0.37 per cent to 3.433 whereas US 30 year bond yield is 0.41 per c ent down to 3.746 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.