GIFT Nifty down 44 points: Asian markets, crude oil prices, dollar movement, Q2 earnings & more

Domestic indices are likely to open lower on Friday post the US Federal Reserve Jerome Powell’s commentary on interest rates. US stocks tumbled overnight after Powell signalled elevated interest rate for longer than expected. Asian stocks fell on firm dollar and US bond yields. Back home, stock-specific actions are likely due to Q2 results. Here's what you should know before the Opening Bell:

Nifty outlook
Rupak De, Senior Technical analyst at LKP Securities Nifty has slipped below the consolidation range low of 19,650. "The 55EMA acted as a support on a closing basis. In the short term, the index might remain volatile, and a move above 19,650 could take the index towards 19,850. A failure to move above 19,650 might result in selling pressure once again," he said.

Nifty Bank outlook
Nifty Bank encountered resistance at its 50 Day EMA, and only a move above this level could indicate fresh upside momentum, said VLA Ambala of Stock Markets Today.  The intraday opening price is a crucial level for the banking index. A move above it, may sustain a bullish sentiment, while falling below it could trigger more selling, she said.

"The nearest support levels for Nifty Bank are at 43,450, 43,230, and 43,050. On the other hand, considering its overall movement, major resistance levels for intraday trading are at 44,100, 44,230, and 44,350," she added.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 43.50 points, or 0.22 per cent, lower at 19,511.50, hinting at a negative start for the domestic market on Friday.

Asian shares fall at open
Asian stocks crashed sharply lower at open as the upsurge in US treasury yields weighed heavily on Asian market sentiment and potentially sealed one of the biggest weekly losses for regional stocks in months. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.63 per cent. Japan's Nikkei fell 0.31 per cent; China's Shanghai declined 0.38 per cent; Hong Kong's Hang Seng dropped 0.67 per cent; South Korea's Kospi tanked 1.96 per cent.

Oil climbs on Mideast contagion fears
Oil prices extended gains on Friday, rising about 1 per cent on fears that the Israel-Gaza conflict may spread in the Middle East and disrupt supplies from one of the world's top-producing regions. Brent crude futures climbed 77 cents, or 0.8 per cent, to $93.15 a barrel by 0042 GMT. US West Texas Intermediate crude was at $90.36 a barrel, up 99 cents, or 1.1 per cent. The front-month November contract expires on Friday.

Dollar up after Fed comments
The dollar was within a hair's breadth of the closely watched 150-yen level on Friday, buoyed by a surge in the US 10-year Treasury yield which in the previous session briefly reached 5 per cent for the first time since 2007. The dollar index gained 0.08 per cent to 106.29, though was on track for a weekly loss. It kept pressure on the yen, which last bought 149.83 per dollar. Elsewhere, the euro eased 0.04 per cent to $1.05755, while sterling was likewise 0.08 per cent lower at $1.21285.

Wall Street stocks settle lower
US stocks slide and 10-year Treasury yields reach a 16-year high after US Federal Reserve Chairman Jerome Powell said that additional interest rate hikes could be warranted in view of economic resiliency and labor market tightness. All three major US stock indexes turned sharply lower. The Dow Jones Industrial Average fell 251.04 points, or 0.75 per cent, to 33,414.04, the S&P 500 lost 36.61 points, or 0.85 per cent, to 4,277.99 and the Nasdaq Composite dropped 128.13 points, or 0.96 per cent, to 13,186.18.

Q2 results today
JSW Steel, Hindustan Zinc, JSW Energy, One97 Communications, CG Power and Industrial Solutions, Central Bank of India, L&T Finance Holdings, Poonawalla Fincorp, Credit Access Grameen, Laurus Labs, Kajaria Ceramics, Atul, Tejas Networks, Authum Investment & Infrastructure, Century Textiles & Industries, Elecon Engineering Company and Jammu & Kashmir Bank are among the companies which announced their earnings for the quarter ended on September 2023.

Stocks in F&O ban list
As many as seven stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Friday, October 20. Stocks including Delta Corp, Indiabulls Housing Finance, Manappuram Finance, Balrampur Chini Mills, and India Cements will remain under the ban. 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 1,093 crore
Provisional data available with NSE suggest that FPIs were net sellers of domestic stocks to the tune of Rs 1,093.47 crore on Thursday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 736.15 crore.

Rupee rises 15 paise against dollar
The rupee appreciated 15 paise to settle at 83.13 against the US dollar on Thursday, tracking softening crude prices in the international markets amid lingering geopolitical uncertainties. However, foreign fund outflows and a weak greenback against major rivals overseas weighed on investor sentiments and capped the gains, forex traders said.

Note: With inputs from PTI, Reuters and other agencies

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