GIFT Nifty down 79 points: Asian markets, crude oil prices, dollar movement & more

After a holiday, domestic equity markets are likely to open lower on Wednesday, tracking negative global cues. Asian stocks were bleeding in the early trade while US stocks posted big cuts overnight. The result season for India Inc is over for now, global cues are likely to dictate the market direction. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty displayed volatility on Monday, before ending the day flattish. On the daily chart, it is evident that the index received support at the 50 EMA, leading to a notable intraday rebound, said Rupak De, Senior Technical analyst at LKP Securities.
 
"However, the RSI on the daily chart demonstrated a bearish crossover, with its value dropping below 50. This could be indicative of a weakening trend. If the index falls below the 19,250 mark, it might incite a corrective movement towards the 19,100-19,150 range in the near future. Conversely, resistance can be identified at the 19,550 level on the higher side," he said.

GIFT Nifty signals a weak start
Nifty futures on the Nifty International Exchange traded 78.50 points, or 0.40 per cent, lower at 19,395.50, hinting at a negative start for the domestic market on Wednesday.

Asian stocks tank in early trade
Asian shares opened with big cuts on Wednesday tracking the sharp fall in the US stocks and developments in the last 24 hours from the world's second largest economy China on another string of top-tier data 'miss' and a surprise rate hike. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.95 per cent. Japan's Nikkei tanked 1.07 per cent; China's Shanghai fell 0.43 per cent; Hong Kong's Hang Seng tumbled 1.15 per cent and South Korea's Kospi crashed 1.23 per cent.

Oil prices hold steady
Oil prices held steady in early trading on Wednesday after a 1 per cent drop in the previous session, as markets weighed weak economic data from China, the world's biggest oil importer, against tightening US crude supplies. Brent crude futures rose 3 cents to $84.92 a barrel, while US West Texas Intermediate crude (WTI) rose 5 cents $81.04. Both benchmarks had weakened to their lowest since August 8 on Tuesday.

Dollar steady, Yen at 9-month low

The yen languished near its weakest level in nine months on Wednesday and kept traders on alert for any signs of intervention, while mounting concerns over China's sputtering economy and gloomy outlook soured the mood in Asia. The greenback predictably rode Treasury yields higher, with the dollar index eking out a slight gain to 103.22. The euro was little changed at $1.0902, while sterling dipped 0.05 per cent to $1.2696, ahead of UK inflation data due later on Wednesday. The Yuan was last little changed at 7.3240 per dollar .

US stocks settle lower
Wall Street's main stock indices closed sharply lower on Tuesday after stronger-than-expected retail sales data stoked worries that interest rates could stay higher for longer, while US big banks dropped a report that Fitch could downgrade some lenders. The S&P 500 dropped 1.16 per cent to end the session at 4,437.86 points. The S&P 500 closed below its 50-day moving average for the first time since March. The Nasdaq declined 1.14 per cent to 13,631.05 points, while Dow Jones Industrial Average declined 1.02 per cent to 34,946.39 points.

Stocks in F&O ban
As many as nine stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Wednesday, August 16. The list retentions like Chambal Fertilisers & Chemicals, Delta Corp, Balrampur Chini Mills, Indiabulls Housing Finance, Granules India, Indiabulls Housing Finance, India Cements Manappuram Finance and Zee Entertainment Enterprises, while Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) is the new entrants.

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 2,324 crore
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 2,324.23 crore on Monday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 1,460.90 crore.
 
Rupee falls 26 paise against US dollar
The rupee depreciated 26 paise to settle at an all-time low of 83.08 against the US dollar on Monday, weighed down by a strong greenback overseas and firm crude oil prices in the international markets. Foreign fund outflows also weighed on the local unit, analysts said.

Note: With inputs from PTI, Reuters and other agencies

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