GIFT Nifty down 32 points: Asian markets, crude oil prices, dollar movement, & more

Domestic stock indices are likely to open lower on Wednesday, tracking weak cues from global markets. Asian stocks opened lower, tracking an overnight fall in US stocks, thanks to a rise in US bond yields. Back home, traders would be building expectations from Q3 results, which will kick off on Thursday. Here's what all you know to know before the Opening Bell:

Nifty outlook
Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy said Nifty has been trading in a narrow range of 21,500 to 21,800 for the past 10 sessions. This consolidation has allowed Nifty to fill the unusually large gap with its 50-day mean level.
 

"The 21,500 level should provide a strong support for Nifty, which is substantiated by the option chain data. The broader upside trend for the market is still intact and Nifty may soon see the levels of 22,000 once the level of 21,800 is breached. However, the intermittent volatility cannot be ruled out as the results season kicks in," he said.

Nifty Bank outlook
Jatin Gedia,  Technical Research Analyst at Sharekhan said Nifty Bank witnessed a sharp decline but the index is approaching crucial support placed in the range of 47,000-46,900. “Until this range is decisively breached on the downside the structure is still in favor of the Bulls," he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 31.50 points, or 0.15 per cent, lower at 21,571, hinting at a negative start for the domestic market on Wednesday.

Asian shares open mostly lower
Asian stocks meandered close to one-month lows on Wednesday. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.33 per cent. Australia's ASX 200 dropped 0.54 per cent; New Zealand's DJ declined 0.49 per cent; China's Shanghai shed 0.03 per cent; Hong Kong's Hang Seng fell 0.28 per cent; South Korea's KOSPI tanked 0.78 per cent. Japan's Nikkei was an exception. It surged 1.93 per cent and was near its 34-year high.

Oil prices extend gains
Oil prices inched higher on Wednesday, extending the previous day's rally, after industry data showed US crude stocks fell more than expected last week, though a bigger-than-anticipated build in products inventories capped gains. Brent crude futures rose 29 cents, or 0.4 per cent, to $77.88 a barrel at 0138 GMT, while US West Texas Intermediate crude futures climbed 29 cents, or 0.4 per cent, to $72.53 a barrel.

Dollar steady ahead of inflation data
The dollar was steady on Wednesday in cautious trading ahead of US inflation data due later this week that is likely to influence the Federal Reserve's policy, while bitcoin was volatile after a fake social media post rattled markets. The dollar index was last at 102.53, after gaining 0.215 per cent on Tuesday. The euro was down 0.05 per cent to $1.0926, while sterling was last at $1.2709, up 0.03 per cent on the day. The Japanese yen weakened 0.19 per cent to 144.74 per dollar.

Wall Street shares settle mixed
The S&P 500 and Dow lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields as investors assessed the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week. The Dow Jones Industrial Average fell 157.85 points, or 0.42 per cent, to 37,525.16. The S&P 500 lost 7.04 points, or 0.15 per cent, at 4,756.50 and the Nasdaq Composite gained 13.94 points, or 0.09 per cent, at 14,857.71.

Stocks in F&O ban list
A dozed stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Wednesday, January 10. The new addition namely- Bandhan Bank- will join the existing retentions including Balrampur Chini Mills, Piramal Enterprises (PEL), Delta Corp, Indian Energy Exchange (IEX), Chambal Fertilisers & Chemicals, Escorts Kubota, Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) India Cements, National Aluminium Company (Nalco) and Steel Authority of India (SAIL). Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment.

FPIs sell shares worth Rs 991 crore
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 990.90 crore on Tuesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 104.23 crore.

Rupee rises 1 paisa against dollar
The rupee on Tuesday closed marginally up by 1 paisa at 83.13 against the US dollar, advancing its gains for the fifth straight session, tracking positive domestic equities. Lower crude oil prices in the international market also supported the domestic unit, forex traders said.

Note: With inputs from PTI, Reuters and other agencies

Also read: Top 5 stocks to watch on January 10, 2024: Polycab India, Cochin Shipyard, Lupin and more