GIFT Nifty flat: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stock indices are likely to open on a tepid note on Wednesday amid weak cues from global markets. Asian stocks were down in the early trade ahead of key economic data from China and Australia. US markets were shut overnight on account of a public holiday . All eyes are on the US Fed's minutes of the recent policy review. Back home, LTIMindtree shares will be in focus on Nifty inclusion. Here's what you should know before the Opening Bell:

Nifty outlook
A bearish candle with a small real body was formed on Nifty’s daily chart. The candle had a long lower wick and minor upper wick. Technically, this market action signal a Hanging Man or a High Wave-type candle formation. After the unfilled gaps of the last three sessions, Nifty filled the opening upside gap of Tuesday, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"There is a possibility of further consolidation or minor weakness in the next 1-2 sessions. The positive chart pattern like higher high-low is intact as per daily timeframe chart. Any weakness from here is likely to be a ‘buy on dips’ opportunity," he said.

GIFT Nifty signals a flat start
Nifty futures on the Nifty International Exchange traded 1 point, or 0.01 per cent, higher at 19,494.50, hinting at a flattish start for the domestic market on Wednesday.

Asian stocks fall in early trade
Asian shares opened lower on Wednesday ahead of the US Fed minutes of recent policy meet. China's services purchasing managers index report for June will also be keenly tracked. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.75 per cent. Japan's Nikkei dropped 0.64 per cent; China's Shanghai declined 0.45 per cent; Hong Kong's Hang Seng tanked 1.15 per cent and South Korea's Kospi retreated 0.34 per cent.

Oil prices ease on global slowdown fears
Oil prices eased on Wednesday, paring the previous day's gain as fears over a global economic slowdown denting fuel demand outweighed expectations of tighter supply due to output cuts announced by top exporters Saudi Arabia and Russia for August. Brent crude was down 14 cents, or 0.2 per cent, at $76.11 a barrel by 0027 GMT, after climbing $1.60 on Tuesday. US West Texas Intermediate (WTI) crude futures were at $71.14 a barrel, up $1.35, or 1.9 per cent, from Monday's close, having traded through a US holiday to mark Independence Day without a settlement.

Dollar index little changed
The dollar drifted near the middle of its range of the past three weeks against major peers on Wednesday, as traders looked ahead to the release of minutes from the Federal Reserve's latest meeting for clues about the path for monetary policy. The dollar index was little changed at 103.02. Europe's shared currency, Euro edged 0.1 per cent higher to $1.0886, while the dollar hovered about half a yen below the 145 level. The yuan was little changed at 7.231 per dollar in offshore trading.

Wall Street to resume trade today
US Stock markets remained closed on Tuesday as Wall Street observed a public holiday on the account of US independence day. However, the main indexes ended with slim gains in a holiday-shortened session on Monday. The Dow Jones Industrial Average rose 10.87 points, or 0.03 per cent, to 34,418.47; the S&P 500 gained 5.21 points, or 0.12 per cent, at 4,455.59; and the Nasdaq Composite added 28.85 points, or 0.21 per cent, at 13,816.77.

Stocks in F&O ban
One stock - Indiabulls Housing Finance- has been put under the F&O segment ban by the National Stock Exchange (NSE) for Wednesday, July 5. 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 buy shares worth Rs 2,134 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 2,134.33 crore on Tuesday. Domestic institutional investors (DIIs) were net sellers of Indian equities to the tune of Rs 785.48 crore.

Rupee falls 10 paise against dollar
The rupee pared initial gains and settled for the day lower by 10 paise to close at 82.01 against the US dollar on Tuesday amid bargain buying from oil importers and hedgers. However, a positive tone in domestic markets, wherein benchmark indices witnessed record high levels and steady foreign fund inflows, supported the rupee at lower levels.


Note: With inputs from PTI, Reuters and other agencies

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