SGX Nifty down 20 points: Asian stocks mixed, crude prices drop, Dollar eases & more

Domestic stock markets are likely to open with mild cuts on Tuesday amid mixed global cues. US stocks settled lower overnight while Asian trading was muted in the early trade. Traders will be keenly looking at the RBI policy review scheduled for later in the day. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty formed a small negative candle on the daily chart, with a minor upper shadow. Technically, this pattern indicates a lacklustre movement in the market at highs. The upper area of 18,600-18,700 has been acting as a crucial hurdle. “The positive chart pattern like higher tops and bottoms continued and the present up move could be in line with the formation of a new higher top of the sequence,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The present consolidation movement is expected to continue within a high low range of 18,700-18,500 levels in the next 1-2 sessions, he said.

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 19.50 points, or 0.10 per cent, lower at 18,705.50, hinting at a negative start for the domestic market on Tuesday.

Asian stocks mixed
Asian equities opened mixed on Tuesday as economic data showed the US services sector softened unexpectedly, reinforcing expectations that the Federal Reserve may skip an interest rate hike when it meets next week. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.42 per cent. Japan's Nikkei gained 0.35 per cent; China's Shanghai added 0.26 per cent; Hong Kong's Hang Seng surged 1.09 per cent and South Korea's Kospi rose 0.54 per cent.

Oil prices inch lower
Oil prices edged lower on Tuesday, giving up most of the prior session's gains that followed an announcement by the world's top exporter, Saudi Arabia, that it would further cut output. Brent crude futures were down 23 cents, or 0.3 per cent, at $76.48 a barrel at 0020 GMT. The US West Texas Intermediate crude eased 25 cents, or 0.4 per cent, to $71.90 a barrel.

Dollar index flat
In the currency market, the dollar index , which measures greenback against six major peers, eased 0.01 per cent. The yen weakened 0.04 per cent to 139.62 per dollar, while Sterling was last fetching $1.2436, off 0.01 per cent on the day. The Australian dollar eased 0.02 per cent to $0.661 as traders waited for the policy decision from the country's central bank.

Wall Street stocks settle lower
US stock indices ended lower on Monday as investors weighed whether the US Federal Reserve may halt interest rate hikes at its upcoming policy meeting. The S&P 500 declined 0.20 per cent to end the session at 4,273.79 points. The Nasdaq declined 0.09 per cent to 13,229.43 points, while Dow Jones Industrial Average declined 0.59 per cent to 33,562.86 points.

Stocks in F&O ban
Three stocks- Indiabulls Housing Finance, India Cements and Manappuram Finance- has been put under the ban by National Stock Exchange (NSE) for Tuesday, June 6. Derivative contracts in a security are banned when it crosses 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 701 crore
Provisional data available with NSE suggest that FPIs turned sellers of domestic stocks to the tune of Rs 700.98 crore. However, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 1,195.98 crore.
 
Rupee falls 24 paise against dollar
The rupee fell 24 paise to close at 82.63 against the US dollar on Monday, weighed down by the strength of the American currency against major rivals and rising crude prices in the international markets. At the interbank foreign exchange, the domestic unit opened at 82.47 against the dollar, and finally settled at 82.63, down 24 paise from its previous close.

Note: With inputs from PTI, Reuters and other agencies

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