SGX Nifty up 8 points: Asian markets, crude oil prices, dollar movement, Nifty outlook & more

Domestic stock indices are likely to kick off the week on a flat note on Monday amid mixed global cues. Asian stocks were trading lower, tracking a fall in US stocks on Friday, thanks to hawkish commentary from the US Federal Reserve. All eyes are now will be on China's monetary policy outcome, as Wall Street will remain closed on Monday on account of a public holiday. Here's what you should know before the opening bell:

Nifty outlook
Nifty has closed above the 18,800 level that was acting as a stiff resistance. The daily and hourly momentum indicators showed a positive crossover, which is a buy signal. “We expect the Nifty to continue with positive momentum. On the upside, the immediate target would be an all-time high of 18,888. The range of 18,670-18,650 may act as a crucial support while the 18,888-18,900 range is the immediate hurdle zone”, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange traded 8 points, or 0.04 per cent, higher at 18,906, hinting at a flat start for the domestic market on Monday.

Asian stocks drop in early trade
Asian markets saw a cautious start on Monday after their best weekly run in five months, as investors awaited China's rate decision and US Federal Reserve Chair Jerome Powell's testimonies for clues on the rate path ahead. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.63 per cent. Japan's Nikkei shed 0.08 per cent; China's Shanghai declined 0.44 per cent; Hong Kong's Hang Seng dropped 0.86 per cent and South Korea's Kospi tanked 0.77 per cent.

Oil prices fall in early trade
Global oil prices fell on Monday, backing off last week's gains as questions over China's economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States. Brent crude lost 68 cents to trade at $75.93 a barrel, while US West Texas Intermediate (WTI) crude was down 59 cents to $71.19.

Dollar steady after last week’s fall
The dollar index was little changed against major peers early on Monday, after falling 1.2 per cent in the previous week, the most in five months. The yen was undermined by a dovish BOJ , touching a seven-month low of 141.90 per dollar, while the hawkish European Central Bank, which hiked by a quarter point last week, aided the euro to hover close to a five-week top at $1.094.

Wall Street stocks settle  lower
US stock indices ended lower on Friday, weighed down by Microsoft and other market heavyweights as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes. S&P 500 fell 0.36 per cent to end the session at 4,409.77 points. The Nasdaq declined 0.68 per cent to 13,689.57 points, while the Dow Jones Industrial Average declined 0.31 per cent to 34,301.03 points.

Stocks in F&O ban
Nine stocks- L&T Finance Holdings, Tata Chemicals, Zee Entertainment (ZEEL), Manappuram Finance, Delta Corp, Indiabulls Housing Finance, India Cements and Indian Energy Exchange (IEX) - has been put under the ban by National Stock Exchange (NSE) for Monday, June 19. 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 795 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 794.78 crore on Friday. However, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 681.33 crore. Overseas investors have poured in Rs 16,406 crore in the Indian equities in the month of June so far.

Rupee rises 35 paise against dollar
The rupee rebounded by 35 paise to close at a month high against the US dollar on Friday amid domestic equity indices surging to record high levels and losses in crude oil prices. FII inflows into local equities and the greenback trading near one-month low levels also bolstered the rupee sentiment, analysts said.

Note: With inputs from PTI, Reuters and other agencies