GIFT Nifty down 22 points: Asian markets, crude oil prices, dollar movement & more

Domestic stock indices are may kick off the week on a negative note as China steered clear of big stimulus, raising concerns over deflation in the economy.  Asian stocks were mostly down in the early trade. US stocks had settled mixed on Friday. All eyes would be on the US Fed chairman's speech later this week.  Here's what you should know before the Opening Bell:

Nifty outlook
Nifty on Friday found support around 19,260 level on intraday basis, which also coincided with the 50-DEMA. The index settled lower for the fourth consecutive week for the first time in February-March 2020 period, said Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities.

"However, Nifty managed to hold the support level of 19,300 throughout the week. Nifty took support from the 50-DEMA of 19,265 on the daily chart. A close below 19,265 can further intensify the selling pressure and drag the index to 18,600 level.  A strong close above 19,500 can revive the lost enthusiasm among buyers," he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 22 points, or 0.11 per cent, up at 19,305.50, hinting at a negative start for the domestic market on Monday.

Asian stocks trade mostly lower
Asian markets tanked on Monday after China delivered a smaller cut to lending rates than markets had counted on, continuing Beijing's run of disappointing stimulus steps. Hitting its new-52 week low, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.40 per cent. Japan's Nikkei jumped 0.72 per cent; Australia's ASX 200 shed 0.15 per cent; New Zealand's DJ plunged 0.63 per cent; China's Shanghai fell 0.15 per cent; Hong Kong's Hang Seng tanked 0.72 per cent and South Korea's Kospi rose 0.52 per cent.

Oil prices stay above $80 a barrel
Oil prices were steady on Monday with Brent staying above $80 a barrel, as investors balanced tightening supply driven by OPEC+ cuts with nagging concerns about global demand growth amid high interest rates. Brent crude dipped 8 cents to $84.72 a barrel by 0033 GMT while US West Texas Intermediate crude was at $81.28 a barrel, up 3 cents. The September WTI contract expires on Tuesday and the more active October contract eased 3 cents to $80.63 a barrel.

Dollar on firm footing
The dollar began on a firm footing on Monday, following five straight weeks of gains, as investors looked ahead to the Federal Reserve's Jackson Hole symposium for a guide on where rates might settle when the dust of this hiking cycle clears. The yuan slid to the weak side of 7.3 per dollar. The euro held at $1.0871. Sterling hovered at $1.2738. The Japanese Yen was on intervention watch, steady at 145.45

US stocks settle mixed
Wall Street ended mixed Friday and US Treasury yields stabilized after a recent surge and as investors awaited further interest rate insight from the Federal Reserve next week. Investors looked toward a speech by Federal Reserve Chair Jerome Powell. The S&P 500 lost 0.65 points, or 0.01 per cent, to 4,369.71 and the Nasdaq Composite dropped 26.16 points, or 0.2 per cent, to 13,290.78. The Dow Jones Industrial Average rose 25.83 points, or 0.07 per cent, to 34,500.66 points.

Stocks in F&O ban
As many as a dozen stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday. Manappuram Finance, Hindustan Copper, SAIL, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Chambal Fertilisers & Chemicals, Delta Corp, Indiabulls Housing Finance, Granules India, Indiabulls Housing Finance, India Cements, Punjab National Bank and Zee Entertainment Enterprises have been put under ban.

Derivative contracts in a security are banned when they cross 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 267 crore
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 266.98crore on Friday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 339.18 crore. Overseas investors have pumped in Rs 8,394 crore in the Indain equities in the month of August so far.
 
Rupee falls 1 paisa to hit new all-time low
The rupee edged lower by 1 paisa to settle at an all-time low of 83.10 against the US dollar on Friday, weighed down by a negative trend in domestic equities and foreign fund outflows. Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising US dollar.

Note: With inputs from PTI, Reuters and other agencies

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