Domestic stock indices may open on a flat note on Tuesday despite firm global cues. Asian stocks were trading mostly higher in the early trade, tracking a positive closing for US stocks overnight. Traders were fixated on the US Federal Reserve's monetary policy outcome later this week. Back home, India's inflation for November will have some impact on domestic stocks. Here's what you should know before the opening bell: Nifty outlook For Nifty, one can look to ‘Buy on dips’ as the index is currently trading at a PE ratio of around 22, below its 20-day EMA on the daily timeframe, indicating an expected pullback as the price nears its averages, said VLA Ambala, Co-founder at Stock Markets Today. "Nifty is signaling a bullish trend with potential for specific-stock movements. There is anticipation of a pullback in broader indices, strong support for the December month series is identified at 20,550. In the event of a significant gap down, it is advisable to 'buy on dip', while a substantial gap up suggests 'sell on rise' for intraday trading," she said. Nifty Bank outlook Jatin Gedia of Sharekhan said Nifty Bank continued its upmove and closed with marginal gains. The index faced selling pressure around the 47,500 level. "We can expect some consolidation going ahead. The consolidation range is likely to be 46,800-47,500. Overall. the trend is positive and dips should be used as a buying opportunity," he said. GIFT Nifty signals a flat start Nifty futures on the NSE International Exchange traded 4.50 points, or 0.2 per cent, higher at 21,145.50, hinting at a flattish start for the domestic market on Tuesday. Asian stocks rise in early trade Asian shares opened higher on Tuesday ahead of the US Fed's meeting this week. Inflation data from India and Japan dominate the Asian calendar on Tuesday. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.46 per cent. Japan's Nikkei rose 0.74 per cent; Australia's ASX 200 gained 0.41 per cent; New Zealand's DJ added 0.09 per cent; China's Shanghai advanced 0.10 per cent; Hong Kong's Hang Seng jumped 0.80 per cent; South Korea's Kospi surged 0.43 per cent. Oil steady ahead of Fed rate decisions Oil prices held steady on Tuesday ahead of key interest rate policy and inflation data announcements, and amid doubts that production cuts by OPEC+ next year would offset crude oversupply and weaker fuel demand growth. Brent crude futures for February were flat at $76.03 a barrel as of 0103 GMT, while US West Texas Intermediate crude futures for January delivery were up 3 cents at $71.35 a barrel. Dollar steady ahead of CPI data, Fed meeting The yen nursed losses on Tuesday as traders walked back expectations for a Japan rate hike, while the dollar was waiting on US inflation data and a slew of central bank meetings. Sterling held at $1.2555, while the euro at $1.0765. The dollar rose about 0.9 per cent on the yen overnight at 145.96 against the yen. Wall Street stocks settle higher US stocks registered modest gains on Monday but managed to close at new highs for the year, ahead of major market catalysts this week that include inflation readings and the Federal Reserve's policy announcement, which will strongly influence investor expectations on the path of interest rates. The Dow Jones Industrial Average rose 157.06 points, or 0.43 per cent, to 36,404.93, the S&P 500 gained 18.07 points, or 0.39 per cent, to 4,622.44 and the Nasdaq Composite gained 28.51 points, or 0.20 per cent, to 14,432.49. Stocks in F&O ban list Seven stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Tuesday, December 12. The new addition namely- India Cements- will join the existing retentions including Hindustan Copper, Balrampur Chini Mills, National Aluminium Company (Nalco), Indiabulls Housing Finance, Steel Authority of India (SAIL) and 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 1,261 crore Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of 1,261.13 crore on Monday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 1,032.92 crore. Rupee gains 3 paise against dollar The rupee appreciated 3 paise to 83.37 against the American dollar on Monday as investors stayed on the sidelines ahead of the US Federal Reserve meeting on interest rates. Persistent foreign fund inflows supported the rupee, but a strengthening US dollar overseas capped the gains, forex traders said. Note: With inputs from PTI, Reuters and other agencies
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