SGX Nifty up 45 points: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stock indices are likely to open higher on Wednesday amid positive global cues. US stocks settled higher overnight amid better-than-expected inflation data. Asian markets also advanced in early trade on hopes of the US Fed halting its rate hike cycle at its meeting later today. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty formed a long bullish candle on the daily chart. Technically, this pattern indicates continuation of the upside movement after a small dip. The positive chart pattern of higher top-bottom continued on the daily chart. The recent swing low of 18,555 could now be considered as a new higher bottom of the sequence, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

"The 10-day EMA has been offering support to Nifty on the daily time frame chart. The near-term trend of the market remains positive. One may expect Nifty to move above the hurdle of 18,800-18,900 levels in the next few sessions. Any weakness at high could find immediate support around the 18,500 level," he said

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 44.50 points, or 0.24 per cent, higher at 18,829.50, hinting at a positive start for the domestic market on Wednesday.

Asian stocks gain in early trade
Asian shares gained on Wednesday morning as the US inflation data triggered rally across risky assets, although investors were mindful of the steep rise in US bond yields. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.20 per cent. Japan's Nikkei surged 1.03 per cent; China's Shanghai gained 0.32 per cent; Hong Kong's Hang Seng rose 0.45 per cent and South Korea's Kospi fell 0.10 per cent.

Oil prices edge lower
Oil prices edged lower on Wednesday after industry data showed an unexpected rise in US crude stocks, signaling weak demand to markets already worried about recession and disappointing Chinese economic data. Brent crude futures eased 27 cents, or 0.4 per cent, to $74.01 a barrel by 0019 GMT. US West Texas Intermediate (WTI) crude was at $69.13 a barrel, down 29 cents, or 0.4 per cent.

Dollar slips lower ahead of Fed outcome
The dollar fell to near a three-week low to the euro and a one-month low versus sterling on Wednesday, after unexpectedly soft US inflation data cemented the view that the Federal Reserve will skip an interest rate hike later in the day. The dollar index was little changed at 103.29 in early Asian trading. The euro was little changed at 1.0791, after reaching a high of $1.08235 on Tuesday, while Sterling edged 0.08 per cent lower to $1.2602. The dollar eased 0.16 per cent to 140.02 yen.

Wall Street stocks settle higher
US indices S&P500 and Nasdaq Composite hit their highest levels in 14 months overnight after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates on Wednesday. S&P500 climbed 0.69 per cent to end the session at 4,369.01 points. Nasdaq Composite gained 0.83 per cent to 13,573.32 points. Dow Jones Industrial Average was up 0.43 per cent at 34,212.12 points.

Stocks in F&O ban
Six stocks- Bharat Heavy Electricals (BHEL), Manappuram Finance, Delta Corp, Indiabulls Housing Finance, India Cements and Indian Energy Exchange- has been put under the ban by National Stock Exchange (NSE) for Wednesday, June 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 buy shares worth Rs 1,678 crore
Provisional data available with NSE showed that FPIs were net buyers of domestic stocks to the tune of Rs 1,677.60 crore on Tuesday. Domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 203.32 crore.

Rupee gains 18 paise against dollar
The rupee gained 18 paise to settle at 82.25 against the US dollar on Tuesday, as a weak greenback overseas and strong macroeconomic data supported investor sentiments. At the interbank foreign exchange market, the local unit opened at 82.42 against the US dollar and settled at 82.25, up 18 paise over its previous close.

Note: With inputs from PTI, Reuters and other agencies

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