SGX Nifty rises 77 points; Asian markets, oil prices, dollar index, FPI flow trend, stocks in F&O ban & more
Domestic stocks are likely to see a flat-to-positive start to WednesdayтАЩs trade, mirroring the flattish trend in Asian markets. US stocks settled higher overnight while the dollar index was trading flat in early morning trade. Oil prices advanced as US crude stocks were seen falling. Here’s what you should know before the Opening Bell:┬а
Nifty outlook
Nifty may see significant resistance at 18,450-18,500 levels and until it decisively breaches the range, one can stay light, said analysts. The level of 18,200 is likely to cushion any intraday blip, while the sacrosanct support lies at 18,100-18,000, said Sameet Chavan of Angel One.
SGX Nifty signals a positive start┬а
Nifty futures on the Singapore Exchange quoted 77 points, or 0.42 per cent, higher at 18,603, hinting at a positive start for the domestic market on Wednesday.
Asian markets flat in early trade
Asian markets were flattish in early trade on Wednesday. Japan’s Nikkei edged 0.03 per cent higher, China’s Shanghai Composite was flat. Hong Kong’s Hang Seng inched 0.19 per cent higher while Korea’s Kospi added 0.24 per cent. Taiwan’s key index advanced 0.68 per cent.┬а
US stocks snap 4-day fall
Wall Street closed slightly higher on Tuesday after four sessions of declines, but investors fretted about weak holiday shopping and rising bond yields added pressure after the Bank of Japan’s (BoJ) surprise tweak of monetary policy. Dow Jones Industrial Average index rose 92.2 points, or 0.28 per cent, to 32,849.74, Reuters reported; S&P500 index gained 3.96 points, or 0.10 per cent, to 3,821.62 and Nasdaq Composite added 1.08 points, or 0.01 per cent, to 10,547.11.
Oil up as US crude stocks seen falling
Oil prices rose in early Asian trade on Wednesday as US crude stocks were seen falling last week, while the dollar weakened, making oil less expensive for non-American buyers, Reuters reported. Brent crude futures rose 8 cents to $80.07 per barrel, while US West Texas Intermediate (WTI) crude futures gained 6 cents to $76.29.
Dollar index flat
The dollar index, which measures the greenback against yen and five other major currencies, was flat at 103.94. Japanese yen weakened 0.26 per cent versus the greenback at 132.06 per dollar early on Wednesday, but stayed not far off its four month high of 130.58 per dollar. ┬аElsewhere, the Australian dollar rose 0.18 per cent versus the greenback at $0.669, while the kiwi fell 0.13 per cent versus the greenback at $0.634.
Stocks in F&O ban
Shares of IRCTC, GNFC, ┬аDelta Corp, Indiabulls Housing, and Punjab National Bank are banned in the F&O segment today. 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.
DIIs buy shares worth Rs 495 crore
Provisional data available with NSE suggests FPIs were net buyers of domestic stocks to the tune of Rs 455.94 crore on Tuesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 494.74 crore.
Rupee drops 8 paise against dollar
The rupee depreciated by 8 paise to settle at 82.70 against the US dollar on Tuesday as investors turned cautious in view of a negative trend in domestic equities and rising crude prices in the global markets. Besides, renewed forex outflows and a waning appetite for riskier assets amid a surprise Bank of Japan policy tweak also dragged down the local unit, forex dealers said.
Also read:┬аWall St closes slightly higher after four-day sell off; Tesla, FedEx shares down
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Also read:┬аCrude oil prices up as US crude stocks seen falling, dollar eases; Brent hits $80.07/bbl
