SGX Nifty up 49 points: Asian markets, crude oil prices, dollar movement, India Inflation & IIP and more

Domestic equity markets are likely to open higher on Tuesday after a positive domestic economic data. Factory output for April 2022 rose, while inflation figures eased. On a global front, Asian stocks were up in the early trade, while US stocks ended with an uptick in the overnight trade. Now, the focus shifts to the US Fed's policy due later this week. Here's what you should know before the opening bell:

Nifty outlook
The Nifty, the benchmark index, remained sideways. It sustained its position above a critical near-term moving average, indicating stability in the market. Whereas, the Relative Strength Index (RSI) showed a bearish crossover, suggesting a potentially weak momentum, said Rupak De, Senior Technical at LKP Securities.

"For the Nifty, initial support is expected to be found at the level of 18,600, where significant Put writing has been observed. This indicates that there is buying interest at this level, potentially providing a floor for the index. On the other hand, resistance levels are seen at 18,650 and 18,800, indicating potential barriers for the Nifty's upward movement," he said.

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 48.5 points, or 0.26 per cent, lower at 18,747, hinting at a positive start for the domestic market on Tuesday.

Asian stocks open higher
Asian shares edged up in early trade on Tuesday, following an upbeat session on Wall Street while investors turned their attention to key US inflation data and the Federal Reserve's interest rate decision this week. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.26 per cent. Japan's Nikkei surged 1.62 per cent; Australia's ASX 200 added 0.04 per cent; New Zealand's DJ jumped 0.87 per cent; China's Shanghai shed 0.21 per cent; Hong Kong's Hang Seng fell 0.57 per cent and South Korea's Kospi gained 0.30 per cent.

Oil prices inch up
Oil prices inched higher on Tuesday on bargain hunting, recovering some ground from the previous day's plunge, but gains were limited as investors remained cautious ahead of key policy decisions by the U.S. Federal Reserve and other central banks. Brent crude futures climbed 16 cents, or 0.2 per cent, to $72.00 a barrel by 0048 GMT. US West Texas Intermediate (WTI) crude was at $67.19 a barrel, up 7 cents, or 0.1 per cent.

Dollar slips lower
The dollar edged broadly lower on Tuesday but traded in a narrow range, as investors remained cautious ahead of key US inflation data due later in the day just as the Federal Reserve kicks off its two-day monetary policy meeting. The US dollar index edged marginally higher to 103.59, after falling to 103.24 on Monday. Against the Japanese yen, the dollar rose 0.02 per cent to 139.63. The euro gained 0.04 per cent to $1.0760. Elsewhere, sterling rose 0.07 per cent to $1.2520.

Wall Street ended higher
The S&P 500 and the Nasdaq rallied on Monday to their highest closing levels since April 2022, while Oracle hit a record high ahead of quarterly results as investors awaited inflation data and the Federal Reserve's interest rate decision this week. The S&P 500 climbed 0.93 per cent to end the session at 4,338.93 points. The Nasdaq gained 1.53 per cent to 13,461.92 points, while Dow Jones Industrial Average rose 0.56 per cent to 34,066.33 points.

Stocks in F&O ban
Four stocks- Delta Corp, Indiabulls Housing Finance, India Cements and Indian Energy Exchange- has been put under the ban by National Stock Exchange (NSE) for Tuesday, June 13. 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.

India's inflation eases
India's annual retail inflation cooled to a more than two-year low of 4.25 per cent in May as cost pressures on food eased, moving closer to the Reserve Bank of India's (RBI) target of 4%, government data showed on Monday. Inflation eased in May from 4.7 per cent in April, firmly within the RBI's inflation band of 2-6 per cent for the third straight month.

India IIP output rises 4.2% in Apr
India's index of industrial production (IIP) rose 4.2 per cent on a yearly basis in the month of April from 1.1 per cent in March and 6.7 per cent in April 2022. The factory output grew at a higher-than-expected rate driven by a low base effect and a pick-up in manufacturing and mining sectors.

FPIs sell shares worth Rs 627 cr
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 626.62 crore on Monday. However, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 1,793.85 crore.

Rupee gains 4 paise against US dollar
The rupee gained 4 paise to settle at 82.43 against the US dollar on Monday, supported by easing crude oil prices and a positive trend in domestic equities. At the interbank foreign exchange market, the local unit opened at 82.45 against the US dollar and settled at 82.43, up 4 paise over its previous close.

Note: With inputs from PTI, Reuters and other agencies