
Domestic stock indices may see flat-to-positive opening on Monday amid mixed global cues. Asian markets were mostly down in the morning trade, tracking a weak closing for US stocks on Friday. The outcome of the US Fed policy meet will guide the market. At home, inflation pint will also sway sentiment at Dalal Street. Here's what you should know before the Opening Bell:
Nifty outlook Nifty formed a negative candle on the daily chart, which indicates downward correction in the market post the recent high. The positive chart pattern like higher top-bottom continued on the daily timeframe and that the present weakness could be in line with the new higher-bottom of the sequence, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities. "The higher bottom reversal needs to be confirmed. The immediate support for Nifty is placed around 18,450 level and any pullback rally could find resistance around 18,750 level," he said. SGX Nifty signals a positive start Nifty futures on the Singapore Exchange traded 75 points, or 0.40 per cent, higher at 18,685, hinting at a positive start for the domestic market on Monday. Asian stocks open lower Asian equities were little change on Monday, with bias negative, as attention turns to a series of central bank meetings. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 per cent. New Zealand's DJ dropped 0.53 per cent; China's Shanghai shed 0.47 per cent; Hong Kong's Hang Seng fell 0.03 per cent and South Korea's Kospi declined 0.30 per cent. Japan's Nikkei rose 0.71 per cent; Australia's ASX 200 gained 0.31 per cent; Oil prices ease ahead of Fed meet Oil prices edged lower on Monday ahead of a Federal Reserve meeting as investors try to gauge the central bank's appetite for further rate hikes. Concerns about China's fuel demand growth and rising Russian crude supply also weighed on the market. Brent crude futures fell 29 cents, or 0.4 per cent, to $74.50 a barrel by 0058 GMT. US West Texas Intermediate (WTI) crude was at $69.93 a barrel, down 24 cents, or 0.3 per cent. Dollar near multi-week lows The dollar held its ground on Monday but was still near multi-week lows against some of its major peers as traders were on guard ahead of central bank meetings this week, including the Federal Reserve's where it will announce its rates decision. The US dollar index clocked a loss of nearly 0.5 per cent last week and was last marginally higher at 103.58. The euro slipped 0.02 per cent to $1.0744 in early Asia trade. The US currency was pinned near a one-month low against the British pound in early Asia trade at $1.25805. Elsewhere, the Japanese yen steadied at 139.35 per US dollar. Wall Street stocks settle higher The S&P 500 and other key US indices closed higher on Friday but off session highs, as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week. The S&P 500 gained 4.93 points, or 0.11 per cent, at 4,298.86 and extending its winning streak to four weeks. The Nasdaq Composite notched its seventh straight week of gains, adding 20.62 points, or 0.16 per cent, to 13,259.14 on the day. The Dow Jones Industrial Average rose 43.17 points, or 0.13 per cent, to 33,876.78. Stocks in F&O ban Three stocks- Indiabulls Housing Finance, India Cements and Indian Energy Exchange- has been put under the ban by National Stock Exchange (NSE) for Monday, June 12. 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 309 crore Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 308.97 crore on Friday. However, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 1,245.51 crore. Despite the recent selling, FPIs have bought shares worth Rs 9,788 crore at Dalal Street in June 2023 so far. Rupee gains 4 paise against dollar The rupee appreciated by 4 paise to close at 82.47 against the US dollar on Friday amid a weak sentiment in domestic equities. Forex traders said a strong dollar overseas and fresh foreign capital outflows capped the gains in the domestic currency. Note: With inputs from PTI, Reuters and other agencies