SGX Nifty down 21 points: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stock indices may open Friday’s session with mild cuts on Friday amid mixed global cues. Asian stocks dropped in the early trade, spooked by fears of interest rate hikes by the US Fed. US stocks recovered overnight to settle flat. All eyes will be on the macroeconomic numbers due later today. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty failed to reach a new high on Thursday and was just one point short of its all-time high, as selling pressure intensified at higher level. The Relative Strength Index (RSI) displayed a bearish crossover, indicating a weakening bullish momentum, said Rupak De, Senior Technical analyst at LKP Securities.

"The current trend seems to be sideways to negative, as long as the index remains below 18,900. On the downside, a support level is identified at 18,700. If the index decisively falls below this level, it may trigger a significant correction in prices," he said.

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 20.50 points, or 0.11 per cent, lower at 18,810.50, hinting at a negative start for the domestic market on Friday.

Asian stocks fall in early trade
Asian shares dropped in the early trade on Friday as they woke up to a jolt of central bank rate hikes and looking ahead to a big round of macro data due later today. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.95 per cent. Japan's Nikkei plunged 1.44 per cent; China's Shanghai tanked 1.31 per cent; Hong Kong's Hang Seng plunged 1.67 per cent and South Korea's Kospi declined 0.74 per cent.

Oil prices down  3% this week
Oil prices were little changed in early trading on Friday but were headed for a 3 per cent drop for the week on worries about the outlook for fuel demand after a bigger-than-expected interest rate hike in the UK and warnings about looming US rate hikes. Brent futures slipped 7 cents, or 0.1 per cent, to $74.07 a barrel, while US West Texas Intermediate (WTI) crude futures were down 11 cents, or 0.2 per cent, at $69.40 at 0026 GMT.

Dollar rises on risk aversion
The dollar drew support from a bout of risk aversion on Friday as hawkish comments from global central banks, including the Federal Reserve, stoked fears that their aggressive monetary tightening could push economies into a deeper downturn. The US dollar rose 0.05 per cent against a basket of six major peers to 102.44. The euro slipped 0.04 per cent to $1.0950. The pound was last 0.07 per cent lower at $1.2740, while the dollar rose broadly and stood near an over seven-month high against the yen at 142.90.

Wall Street stocks settle higher
The S&P 500 and the Nasdaq closed higher on Thursday as US Federal Reserve Chairman Jerome Powell continued to beat a hawkish drum and suggested the central bank has not reached the end of its tightening cycle, but provided reassurance that the Fed would proceed with caution. The Dow Jones Industrial Average fell 4.81 points, or 0.01 per cent, to 33,946.71, the S&P 500 gained 16.2 points, or 0.37 per cent, to 4,381.89 and the Nasdaq Composite added 128.41 points, or 0.95 per cent, to 13,630.61.

Stocks in F&O ban
Five stocks- RBL Bank, Punjab National Bank (PNB), Hindustan Copper, Bharat Heavy Electricals (BHEL) and L&T Finance Holdings- have been put under the ban by National Stock Exchange (NSE) for Friday, June 23. 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 693 crore
Provisional data available with NSE suggest that FPIs were net sellers of domestic stocks to the tune of Rs 693.28 crore on Thursday. Domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 219.42 crore.

Rupee rises 5 paise against dollar
The rupee appreciated by 5 paise to close at 81.96 (provisional) against the US dollar on Thursday amid weak American currency against major rivals overseas. Buying in domestic equities by foreign institutional investors and easing crude oil prices also weighed in favour of the rupee, analysts said.


Note: With inputs from PTI, Reuters and other agencies

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