Indian benchmark indices are likely to open flat on Wednesday despite firm cues from global peers. US stocks settled higher overnight while Asian peers were trading up in early trade today. At home, investors would be building up expectations on the December quarter earnings season that is underway. Here’s what you should know before the Opening Bell:
Nifty outlook
Following a day of pause, the Nifty dropped sharply, falling below the previous session’s low. A bearish engulfing pattern on the daily chart points towards a further correction, said Rupak De, Senior Technical Analyst at LKP Securities. “The index, however, has been hovering within the bands of 17,750 and 18,250. A decisive breakout on either side may trigger a strong directional move,” he said.
SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange quoted 5.5 points, or 0.03 per cent, higher at 17,991.50, hinting at a flat start for the domestic market on Wednesday.
Asian shares mostly up
Equities climbed in Asia on Wednesday, extending an advance seen on Wall Street as traders bet that the upcoming US consumer price index will show further softening. Japan’s Nikkei rallied 1,05 per cent, per cent; Australia’s ASX 200 surged 1.02 per cent; New Zealand’s DJ was down 0.46 per cent; Hong Kong’s Hang Seng rallied 1.30; Seoul’s Kospi gained 0.21 per cent; and China’s Shanghai added 0.19 per cent.
Oil price decline
Oil prices fell on Wednesday, erasing the previous session’s gains, after industry data showed an unexpected build in crude and fuel inventories in the United States, the world’s biggest oil user, which reignited worries about fuel demand. US West Texas Intermediate (WTI) crude futures fell 59 cents, or 0.8 per cent, to $74.53 a barrel, while Brent crude futures were down 62 cents, or 0.8 per cent, at $79.48 a barrel.
Dollar firm ahead of CPI data
The dollar held its ground on Wednesday, in spite of downward pressure from lower bond yields and higher stocks, as traders waited on this week’s US consumer price data to see whether it will confirm that inflation is in retreat. The Australian dollar nudged 0.3 per cent higher to $0.6912 and the New Zealand dollar crept up 0.2 per cent to $0.6380. The dollar was steady at 132.23 Japanese yen and $1.2161 per British pound .
Wall Street settled higher
US stocks ended solidly higher on Tuesday, led by a 1 per cent gain in the Nasdaq, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy. Dow Jones Industrial Average index gained 186.45 points, or 0.56 per cent, to 33,704.10; S&P500 index advanced 27.16 points, or 0.70 per cent, to 3,919.25; and the Nasdaq Composite index rose 106.98 points, or 1.01 per cent, to 10,742.63.
Q3 earnings today
National Standard (India), 5Paisa Capital, Alstone Textiles (India) and Gorani Industries are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
Two stocks – GNFC and Indiabulls Housing Finance- have been added by National Stock Exchange (NSE) under F&O ban for Wednesday, January 11. 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 2,109 crore
Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 2,109.34 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,806.62 crore.
Rupee gains 61 paise
The rupee appreciated 61 paise- the biggest single-day gain in nearly two months- to close at 81.74 against the US dollar on Tuesday on the expectation of inflows in the bond segment. Forex traders said the rupee was the best performer among Asian currencies and now has the support of 81.70.
(With inputs from PTI, Reuters and other agencies)
