SGX Nifty down 8 points: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stocks are set to kick off the new week on a flattish not amid mixed cues. US stocks settled lower on Friday while Asian stocks opened mixed as the drama that unfolded in Russia over the last two days raised concerns over crude supply. Back home, the IPO of ideaForge Technology will kick off for public subscription. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty closed exactly at the 20-day moving average on the daily chart. It has been holding the since the recent rally started in April. The daily momentum indicator has suggested a negative crossover, which is a sell signal. On the weekly chart, one can observe a negative close after four consecutive weekly gains, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

"Overall, weakness has crept in and the wait for a new all-time high gets longer. We would still await further for validations on the price to assume a change the trend. In terms of levels, 18,650-18,600 shall act as a crucial support zone while 18,880-18,900 shall act as a crucial resistance zone," he said.

SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange traded 7.50 points, or 0.04 per cent, lower at 18,707.50, hinting at a flat start for the domestic market on Monday.

Asian stocks mixed in early trade
Asian shares were mixed in early trade on Monday after a short-lived Russian mutiny. However, this is a pretty light week as far as regional economic, policy and corporate events. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.12 per cent. Japan's Nikkei gained 0.27 per cent; China's Shanghai Composite slipped 0.85 per cent; Hong Kong's Hang Seng added 0.12 per cent while South Korea's Kospi rose 0.47 per cent.

Oil prices rise after Russia developments
Oil prices rose in early Asian trade on Monday after a failed mutiny by Russian mercenaries over the weekend raised concerns about political instability in Russia and the potential impact on oil supply from one of the world's largest producers. Brent crude futures rose 1 per cent to $74.55 a barrel and US crude poked above $70, recouping a little of losses made last week.

Dollar nears one-week high
The dollar held near a one-week high against its major peers on Monday as traders weighed the impact of protracted monetary tightening cycles on the global growth outlook and as worries over a deep downturn in major economies lingered. The US dollar steadied at 102.71, after a gain of more than 0.5 per cent last week.  The euro was nursing its losses from last week and was last up 0.07% at $1.0902 in Asia trade, while Sterling rose 0.1% to $1.27285. Elsewhere, the Japanese yen rose 0.3 per cent to 143.27 per dollar.

Wall Street stocks fall
US stocks closed lower on Friday, capping a week dominated by Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution. All three major US stock indexes lost ground in a broad sell-off. The Dow Jones Industrial Average fell 219.28 points, or 0.65 per cent, to 33,727.43, the S&P 500 lost 33.56 points, or 0.77 per cent, at 4,348.33 and the Nasdaq Composite dropped 138.09 points, or 1.01 per cent, to 13,492.52.

ideaForge Tech IPO to kick off today
The Rs 567 crore-initial public offering (IPO) of ideaForge Technology kicks-off for subscription on Monday, June 26 and can be subscribed till Thursday, June 29. The drone manufacturer has announced to sell its shares in the fixed price band of Rs 638-672 apiece with a lot size of 22 equity shares during the three-day stake sale.

Stocks in F&O ban
Five stocks- Hindustan Aeronautics (HAL), RBL Bank, Punjab National Bank (PNB), Hindustan Copper and L&T Finance Holdings- have been put under the ban by National Stock Exchange (NSE) for Monday, June 26. 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 345 crore
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 344.81 crore on Friday. However, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 684.01 crore. On the contrary, overseas investors have poured in Rs 30,664 crore in the domestic equities in the current month so far.

Rupee rises 1 paise against dollar
The rupee closed almost flat at 81.96 against the US dollar on Friday amid a strong American currency against major rivals overseas and negative sentiment in equity markets. A sharp fall in crude oil prices helped the rupee cut losses and close in the green even as FII outflows kept the gains in check, said analysts.


Note: With inputs from PTI, Reuters and other agencies

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