Domestic stocks are likely open lower on Wednesday, tracking muted global cues. Asian stocks were trading mixed, as Wall Street stocks snapped a four-day winning streak overnight. Crude oil prices remained firm while the US dollar eased quite a bit. Here’s what you should know before the Opening Bell:
Nifty outlook
Nifty traded above its 9- and 21-EMA, which are placed at 17,174 and 17,239 levels, respectively, on the daily chart. The momentum oscillator RSI on the daily chart has shown a strong reversal from the lower levels, with a bullish crossover on the cards.
“Technically, Friday’s bullish candle has shown optimism amongst the traders, but the index needs to cross 17,500 levels on the higher side for a shift in the momentum. On the lower side, 17,100 and 17,000 will act as anchor point for the index,” said Rohan Patil, Technical Analyst at Samco Securities.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange dropped 54 points, or 0.31 per cent, to 17,521, hinting at a negative start for the domestic market on Wednesday.
Asian shares largely mixed
Asian markets opened on a mixed note on Wednesday, as Wall Street stocks snapped a four-day winning streak. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.16 per cent. Japan’s Nikkei tanked 1.30 per cent; Australia’s ASX 200 shed 0.06 per cent; New Zealand’s DJ gained 0.28 per cent; China’s Shanghai advanced 0.49 per cent; Hong Kong’s Hang Seng declined 0.66 per cent and Korea’s Kospi added 0.15 per cent.
Oil prices edge higher
Oil prices rose in early Asian trade on Wednesday on anticipated US crude inventory declines and OPEC+’s latest output cut targets. Brent crude futures gained 38 cents to $85.32 a barrel at 0021 GMT. West Texas Intermediate US crude was up 33 cents to $81.04 a barrel.
Dollar nears 2-month low
The US dollar was stuck near two-month lows on Wednesday as weak economic data bolstered views that the Federal Reserve is near the end of its monetary tightening cycle. The dollar index eased to a fresh two-month low of 101.43. The euro was up 0.12 per cent to $1.0965. Sterling was last trading at $1.2509, up 0.08 per cent on the day, The Japanese yen strengthened 0.21 per cent to 131.41 per dollar.
US stocks settle lower
Wall Street closed lower on Tuesday after evidence of a cooling economy exacerbated worries that the Federal Reserve’s campaign to rein in decades-high inflation may cause a deep downturn. All three major indexes fell as data showed US job openings in February dropped to the lowest level in nearly two years, The S&P 500 declined 0.58 per cent to end the session at 4,100.68 points, closing lower for the first time in a week. The Nasdaq declined 0.52 per cent to 12,126.33 points, while the Dow Jones Industrial Average declined 0.59 per cent to 33,403.04 points.
Stocks in F&O ban
No stocks have been put under F&O ban by National Stock Exchange (NSE) for Wednesday, April 5. 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 buy shares worth Rs 322 crore
Provisional data available with NSE suggests FPIs turned net buyers of domestic stocks to the tune of Rs 321.93 crore on Monday. However, domestic institutional investors (DIIs) turned net sellers of equities to the tune of Rs 328.24 crore.
Rupee drops 11 paise against dollar
The rupee depreciated 11 paise to close at 82.32 against the US currency on Monday as a strong American currency in the overseas market and firm crude oil prices weighed on investor sentiments. At the interbank foreign exchange market, the rupee opened at 82.44 against the greenback and closed at 82.32, registering a fall of 11 paise over its previous close of 82.21.
Note: With inputs from PTI, Reuters and other agencies
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