Domestic stock indices are likely to open higher on Tuesday, tracking an overnight jump in US stocks. Wall Street shares rose overnight as concerns over the banking sector crisis eased. Asian stocks also started Tuesday’s session with gains. However, traders may remain cautious ahead of the outcome of two-day US FOMC meet, which starts today. Here’s what you should know before the opening bell:
Nifty outlook
Jatin Gedia, Technical Research Analyst at Sharekhan expects Nifty to continue with the positive momentum. On the upside, the immediate hurdle stands at the 17,145-17,200. This is where the previous swing high is placed at, he said. The immediate support stands at the lower end of the downward sloping channel of 16,800-16,850, Gedia said.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 57.50 points, or 0.34 per cent, higher at 17,082, hinting at a positive start for the domestic market on Tuesday.
Asian shares rise in early trade
Asian stocks were lifted from lows on Tuesday, with the rescue of Credit Suisse stemming from selling in bank shares. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.76 per cent. Australia’s ASX 200 jumped 1.29 per cent; China’s Shanghai gained 0.34 per cent; Hong Kong’s Hang Seng rose 0.46 per cent and Korea’s Kospi advanced 0.76 per cent. Japan’s Nikkei, however, tanked 1.42 per cent.
Oil prices steady after fall
Oil prices stabilised on Tuesday after falling early in the previous session on worries that recent banking-sector problems would weigh on the global economy and limit demand for crude. Brent crude futures for May settlement gained 5 cents and traded at $73.84 per barrel. US West Texas Intermediate (WTI) crude futures rose 9 cents to $67.73 a barrel. In the previous session, both Brent and WTI fell about $3 a barrel before settling higher.
Dollar languishes amid banking crisis
The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis. The US dollar index fell 0.04 per cent to 103.30. Sterling rose 0.02 per cent to $1.2280, while the euro steadied at $1.0722. The Aussie fell 0.22 per cent to $0.6703. The dollar slipped 0.12 per cent to 131.15 against the Japanese yen.
Wall Street stocks settle higher
US stocks jumped on Monday after a deal to rescue Credit Suisse and central bank efforts to bolster confidence in the financial system relieved investors, while participants also weighed the likelihood of a pause in rate hikes from the Federal Reserve this week. The Dow Jones Industrial Average rose 382.6 points, or 1.2 per cent, to 32,244.58, the S&P 500 gained 34.93 points, or 0.89 per cent, to 3,951.57 and the Nasdaq Composite added 45.03 points, or 0.39 per cent, to 11,675.54.
Stocks in F&O ban
Two stocks- Indiabulls Housing Finance and Biocon- have been retained under F&O ban by National Stock Exchange (NSE) for Tuesday, March 21. 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 2,546 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 2,545.87 crore on Monday. However, domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 2,876.64 crore.
Rupee rises 3 paise against dollar
The rupee edged higher by 3 paise to close at 82.56 against the US dollar on Monday as crude oil prices slipped to a 15-month low and the greenback weakened against global currencies ahead of the US Federal Reserve meeting on interest rates. FII outflows and losses in local equity markets, however, capped the rupee’s gains, forex dealers said.
Note: With inputs from PTI, Reuters and other agencies
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