SGX Nifty up 33 points: Asian markets fall, dollar slides, crude edge lower, FPI flows & more

Domestic equity indices are likely to buck the global weakness and a set for start with mild opening. Asian stocks were trading with big cuts, whereas US stock settled lower on Monday after the SVB fallout. However, a pause in aggressive rate hike by the US Fed is the biggest positive for equity markets. India's retail inflation dropped to 6.44 per cent in February. Here's what you should know before the opening bell:

Nifty outlook
The Nifty opened on a flat note today and witnessed a volatile first half of trading. As the day progressed the selling pressure intensified, and Nifty closed 260 points for the day. On the daily charts we can observe that the has breached and closed below the previous swing low of 17,255 which is a sign of weakness, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

"The daily momentum indicator has triggered a negative crossover which is a sell signal. Prices are trading along the expanding lower Bollinger band that the fall is likely to continue. Thus, both price and momentum indicators suggest a further downside. On the way down we expect the Nifty to touch the lower end of the falling channel," he said.

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange quoted 32.5 points, or 0.19 per cent up at 17,211.50, hinting at a positive start for the domestic market on Tuesday.

Asian shares sharply lower
Asia's share markets slid on Tuesday as fear of a US banking crisis gripped investors ahead of crucial inflation data due later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.88 per cent. Japan's Nikkei plunged 2.33 per cent; Australia's ASX 200 tanked 1.95 per cent; New Zealand's DJ dropped 0.88 per cent; China's Shanghai dropped 0.42 per cent; Hong Kong's Hang Seng shed 0.60 per cent. and Seoul's Kospi tumbled 2.14 per cent.

Oil prices edge lower
Oil prices slipped on Tuesday, extending the previous day's slide, as the collapse of Silicon Valley Bank startled equities markets and raised worries about a fresh financial crisis. Brent crude futures fell 9 cents to $80.68 a barrel by 0101 GMT. US West Texas Intermediate crude futures (WTI) dropped 16 cents to $74.64 a barrel.

Dollar languished over crisis
The dollar languished near a multi-week low on Tuesday as fears of a broader systemic crisis following the collapse of a US tech-focused lender left traders speculating that the Federal Reserve could pause its aggressive rate-hiking cycle. The US dollar index rose 0.09 per cent to 103.77. The greenback was marginally higher against the Japanese yen at 133.42. The sterling edged 0.19 per cent lower to $1.2159, while the euro fell 0.09 per cent to $1.0719.

Wall Street settled lower
Sliding bank shares dragged Wall Street down on Monday with investors worried about contagion from the Silicon Valley Bank collapse, but trade was choppy and the Nasdaq composite actually ended higher as some sectors benefited from hopes the Federal Reserve could ease up on interest rates hikes. The Dow Jones Industrial Average fell 90.5 points, or 0.28 per cent, to 31,819.14, the S&P 500 lost 5.83 points, or 0.15 per cent, to 3,855.76 and the Nasdaq Composite added 49.96 points, or 0.45 per cent, to 11,188.84.

Stocks in F&O ban
Only one stock- Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)- has been retained under F&O ban by National Stock Exchange (NSE) for Tuesday, March 14. 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 1,547 cr
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 1,546.86 crore on Monday. Similarly, domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 1,418.58 crore.

Rupee settled lower
The rupee pared its initial gains to settle 17 paise down at 82.23 against the US dollar on Monday, tracking losses in the domestic equity market and unabated foreign fund outflow. Traders said fall in crude oil price and a weaker dollar against major currencies, however, restricted the fall of the Indian currency.

Note: With inputs from PTI, Reuters and other agencies

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