Domestic benchmark indices are likely to open lower on Tuesday amid negative global cues. US stocks settled lower overnight while Asian stocks followed the suit. Back home, the RBI's MPC meet will be on traders’ radar. Here's what you should know before the Opening Bell: Nifty outlook VLA Ambala, co-founder at Stock Market Today said that investors should avoid 'sell on rise' approach unless there is a huge gap-up. One should buy the dips, she said adding that many large cap stocks are undervalued at prevailing levels. “A pullback is expected as price is trading above 4 per cent above its 20 day EMA. Important supports for Nifty are at 20,500 and 20,400 levels. Major resistances will be at 20,800 and 21,000 level. We can see Nifty at 21,000 in the near future," she said Nifty Bank outlook Jatin Gedia of Sharekhan said Nifty Bank has closed at an all-time high and one can expect the momentum to continue. “On the upside, 47,000 – 47,200 shall be the immediate short-term target and any dip towards 46,200 – 46,000 should be used as a buying opportunity," he said. GIFT Nifty signals a positive start Nifty futures on the NSE International Exchange traded 39.50 points, or 0.19 per cent, lower at 20,821, hinting at a negative start for the domestic market on Tuesday. Asian shares drop at open Asian stocks opened sharply lower on Tuesday with investor sentiment cooled by Monday's selloff across US stocks and bonds. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.76 per cent. Japan's Nikkei plunged 1.50 per cent; Australia's ASX 200 shed 0.88 per cent; New Zealand's DJ dropped 0.45 per cent; China's Shanghai declined 0.62 per cent; Hong Kong's Hang Seng slipped 0.89 per cent; South Korea's Kospi fell 0.37 per cent. Oil steady amid doubts over OPEC+ cut Oil prices held steady on Tuesday amid uncertainty over voluntary output cuts by OPEC+ and as continued tension in the Middle East spurred supply concern. Brent crude futures edged up 13 cents to $78.16 a barrel by 0106 GMT, while US West Texas Intermediate crude futures were up 18 cents at $73.22 a barrel. Dollar regains momentum The dollar regained some ground on Tuesday and hovered near a one-week high against major peers, while bitcoin extended its momentum on optimism that US regulators could soon approve exchange-traded spot bitcoin funds. The dollar index stood near a more than one-week high and was last at 103.59. The euro languished near a three-week low hit on Monday and last traded $1.0840, while the greenback rose marginally against the yen in early Asia trade to 147.23. Elsewhere, sterling rose 0.08 per cent to $1.2642. Wall Street stocks settle lower US stocks ended lower on Monday, interrupting last week's rally, as investors turn cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.' The S&P 500 declined 0.54 per cent to end the session at 4,569.78 points. The Nasdaq declined 0.84 per cent to 14,185.49 points, while Dow Jones Industrial Average declined 0.11 per cent to 36,204.44 points. Stocks in F&O ban Four stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Tuesday, December 5. The new addition namely- Indiabulls Housing Finance, India Cements and Zee Entertainment Enterprises (ZEEL)- will join the existing retention Delta Corp. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment. FPIs buy shares worth Rs 2,073 crore Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of 2,073.21 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 4,797.15 crore. Rupee falls 5 paise against dollar The rupee pared its initial gains and settled lower by 5 paise at 83.38 against the US dollar on Monday amid a recovery in the greenback in overseas markets and dollar buying by lenders. Forex traders said the rupee gained earlier in the day as domestic equity indices surged to record highs after the ruling BJP scored a spectacular win in three Hindi heartland states. Moreover, sustained foreign fund inflows and losses in crude oil also supported the local currency. Note: With inputs from PTI, Reuters and other agencies
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