Domestic stock indices may open on a negative note on Wednesday, tracking muted global trend. Asian stocks were trading lower while US stocks settled mixed overnight. Hot US inflation data suggests that the US Fed may not halt rate hike cycle anytime soon. Here's what you should know before the opening bell:
Nifty outlook On the daily charts, Nifty has managed to close above the immediate hurdle zone of 17,850-17,900, which takes the bulls in a position of advantage, said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
"The hourly Bollinger bands have begun to expand, indicating expansion in volatility. Prices trading along the upper band suggests that the positive momentum is likely to continue. The daily momentum indicator has seen a positive crossover, which is a buy signal. Thus, both price and momentum indicators are suggesting further upside. We expect Nifty to test 18,100 in short-term," he said.
SGX Nifty signals a negative start Nifty futures on the Singapore Exchange quoted 37.50 points, or 0.21 per cent, higher at 17,890, hinting at a negative start for the domestic market on Wednesday.
Asian shares open mostly lower Asian shares were trading mostly lower on Wednesday, as hot inflation data and mixed central bank commentary over the interest rate hike rate path weighed on the sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.85 per cent. Japan's Nikkei shed 0.02 per cent; Australia's ASX 200 plunged 1.06 per cent; China's Shanghai declined 0.17 per cent; Hong Kong's Hang Seng tanked 1.22 per cent; and Seoul's Kospi dropped 0.64 per cent.
Oil prices fall in early trade Oil prices slipped in early Asian trade on Wednesday, in addition to a $1 a barrel fall in the previous session, as industry data pointed to a much bigger-than-expected surge in US crude inventories. Brent crude futures lost 20 cents to $85.38 per barrel, while US West Texas Intermediate (WTI) crude futures shed 19 cents to $78.87.
Dollar gains after inflation data The dollar found some support on Wednesday after stubbornly high US inflation suggested interest rates are going to remain high for longer than investors had expected. The US dollar index hovered around 103.26, the US dollar climbed to 132.73 early in the Asia session. The euro advanced to $1.0734, while Sterling was boosted overnight by strong wages data and last bought $1.2178.
US stocks settle mixed Wall Street stocks ended mixed on Tuesday after US consumer price data for January offered little to change expectations about the Federal Reserve's path forward on interest rate hikes. The S&P 500 declined 0.03 per cent to end at 4,136.17 points. The Nasdaq gained 0.57 per cent at 11,960.15 points, while Dow Jones Industrial Average declined 0.46 per cent to 34,089.40 points.
Stocks in F&O ban Four stocks- Ambuja Cements, Indiabulls Housing Finance, Punjab National Bank (PNB) and Bharat Heavy Electricals (BHEL)- are retained under F&O ban by National Stock Exchange (NSE) for Wednesday, February 15. 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 1,305 crore Extending their net inflows, provisional data available with NSE suggests FPIs turned net buyers of domestic stocks to the tune of Rs 1,305 on Tuesday. However, domestic institutional investors (DIIs) also turned buyers of equities to the tune of Rs 204.79 crore.
Rupee drops 7 paise against dollar The rupee fell by 7 paise to close at 82.77 against the US dollar on Tuesday, amid strong American currency and caution observed by market participants. Forex traders said lower crude oil prices, higher domestic equities and weaker dollar index resisted the fall in the rupee.
Note: With inputs from PTI, Reuters and other agencies
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