Domestic equity markets are likely to open lower on Thursday, tracking the subdued global cues. Asian peers were trading lower at opening, whereas US stocks ended on a mixed note. Inflation worries continue to loom among the traders. Back home, the Supreme Court is likely to pronounce the order in Adani-Hindenburg PILs later in the day. Here’s what you should know before the opening bell:
Nifty outlook
The Benchmark index on Wednesday has shown signs of recovery after forming a bullish ABCD Harmonic pattern on the daily chart. The prices have also broken their eight-day losing streak and closed at 17,450 with a gain of 0.85 per cent, said Rohan Patil, Technical Analyst, Samco Securities.
“The market may have ended its week-long losing streak today but the overall trend remains negative, as the index is still trading below its short-term averages (9 & 21 EMA). The major resistance for the Index is presently capped at 17,700 levels and similarly, on the lower side, 17,250 will act as immediate support for the prices,” he said.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange quoted 63.5 points, or 0.36 per cent up at 17,456, hinting at a negative start for the domestic market on Thursday.
Asian shares open lower
Asian stocks dropped at open on Thursday amid the concerns that inflation is likely to remain elevated and central banks may continue aggressive rate hikes to curb the rising prices. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.33 per cent. Japan’s Nikkei shed 0.27 per cent; Australia’s ASX 200 edged lower 0.02 per cent; New Zealand’s DJ tanked 0.70 per cent; China’s Shanghai rose 0.03 per cent; Hong Kong’s Hang Seng plunged 0.86 per cent; and Seoul’s Kospi rose 0.33 per cent.
Dollar squeezed over inflation worries
The dollar nursed losses on Thursday as optimism about China’s reopening was supported by encouraging data and underpinned Asian currencies, while sticky inflation had the euro eying its best week in a month and a half. The euro is up 1.2 per cent on the week and last bought $1.0667. Sterling was steady at $1.2027. On Thursday the yen was a tad stronger at 136.04, while the yuan traded at 6.8731 per dollar in offshore trade.
US stocks settled mixed
The S&P 500 and Nasdaq fell for a second straight session on Wednesday as Treasury yields jumped after manufacturing data indicated inflation is likely to remain stubbornly high, while comments from Federal Reserve policymakers supported a hawkish policy stance. The Dow Jones Industrial Average rose 5.14 points, or 0.02 per cent, to 32,661.84, the S&P 500 lost 18.76 points, or 0.47 per cent, to 3,951.39 and the Nasdaq Composite dropped 76.06 points, or 0.66 per cent, to 11,379.48.
Stocks in F&O ban
No stocks have been put under F&O ban by National Stock Exchange (NSE) for Thursday, March 2. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
FPIs sell shares worth Rs 425 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 424.88 on Wednesday. Similarly, domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 1,498.66 crore.
Rupee gains 9 paise
The rupee appreciated by 9 paise to close at 82.49 against the US dollar on Wednesday as a positive trend in domestic equities and easing crude oil prices supported investor sentiments. Weakness in the US dollar in the global markets and gains in Asian currencies following positive Chinese macro data also bolstered the local unit.
Note: With inputs from PTI, Reuters and other agencies
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