SGX Nifty up 62 points: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stock indices are likely open higher on Wednesday despite mixed global cues. Asian markets were trading mostly lower while Wall Street stocks settled higher overnight led by strong economic data. Wednesday being an expiry day for June series derivatives contracts could see high volatility for domestic stocks, especially ahead of a market holiday on Thursday. Here's what you should know before the opening bell:

Nifty outlook
Nifty bounced back from the 20-day Exponential Moving Average (DEMA) of 18,662 on the daily chart. The foreign portfolio investors (FPIs’) Long-Short ratio stayed above the 50 per cent mark for the 10th consecutive trading session, said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

"Nifty has formed a Morning Star-like pattern on the daily chart. Heavy put writing additions were seen at the strike of 18,700, making it a strong support, as we head into the final day of the June series expiry. Option activity at the 18,800-strike will provide cues about Nifty Intraday direction today," he added.

SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 62 points, or 0.33 per cent, higher at 18,873, hinting at a positive start for the domestic market on Wednesday.

Asian stocks open mostly lower
Asian shares hesitated on Wednesday as surprisingly upbeat US economic news warred with global growth concerns. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.18 per cent. China's Shanghai tanked 0.64 per cent; Hong Kong's Hang Seng shed 0.17 per cent and South Korea's Kospi declined 0.51 per cent.
Japan's Nikkei, meanwhile, gained 0.63 per cent.

Oil prices tick up
Oil prices edged higher on Wednesday as markets worried about supply tightness in the US, the world's biggest oil consumer, after data showed a larger-than-expected draw in its crude and gasoline inventories. Brent crude futures rose 32 cents, or 0.4 per cent, to $72.58 a barrel at 0002 GMT, while US West Texas Intermediate (WTI) futures gained 23 cents, or 0.3 per cent, to $67.94 a barrel.

Dollar index stands at 102.61 level
The dollar index retreated after a host of economic data releases indicated the U.S. economy remains resilient and may not be close to a recession. The dollar index recouping from losses at 102.61. The euro responded by climbing to $1.0957, while surging on the low-yielding yen to a 15-year peak of 157.97. The dollar rose to a near eight-month peak of 144.18 yen.

Wall Street socks settle higher
US stock indices rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The Dow Jones Industrial Average rose 212.03 points, or 0.63 per cent, to 33,926.74; the S&P 500 gained 49.59 points, or 1.15 per cent, at 4,378.41; and the Nasdaq Composite added 219.90 points, or 1.65 per cent, at 13,555.67.

Stocks in F&O ban
Two stocks- L&T Finance Holdings and Manappuram Finance- have been put under the ban by National Stock Exchange (NSE) for Wednesday, June 28. 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 2,024 cr
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 2,024.05 crore on Tuesday. However, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 1,991.35 crore.

Rupee rises 2 paise against dollar
The rupee edged up 2 paise to settle at 82.02 against the US dollar in a listless trade on Tuesday amid a weak greenback in overseas markets and a rally in domestic equities. While concerns over interest rate hikes in the US and geopolitical worries capped gains in the local unit, a weak US currency in the global markets and a fall in crude oil prices supported the rupee, analysts said.

Note: With inputs from PTI, Reuters and other agencies

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