GIFT Nifty down 21 points: Asian markets, crude oil prices, dollar movement, & more

Domestic stock indices are likely to see a muted start on Wednesday, tracking a weakness in global markets. US stocks settled lower overnight while Asian stocks extended the recent fall. All eyes were on the US Fed's minutes of recent policy review. Dollar stood near two-week high. Back home, Q3 business updates from India Inc will trigger stock-specific actions. Here's what all you know to know before the Opening Bell:

Nifty outlook
Jatin Gedia, Technical Research Analyst at Sharekhan said Nifty is in the process of retracing the rise it witnessed from 20,976-21,834 on the daily chart. It has reached the support cluster of 21,630-21,600 where support in the form of the 40-hour moving average and 23.60 per cent Fibonacci retracement level is placed. The consolidation can continue over the next few trading sessions and in case of a dip towards 21,550-21,500, it should be used as a buying opportunity, he said.

Nifty Bank outlook
Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said that Nifty Bank fell strongly initially but consolidated throughout the day in a tight range and closed 473 points lower at 47,762. "The call writers (bears) built aggressive positions at the 48,000 Strike in Bank Nifty, leading to an Intraday fall in the index, thereby making the resistance even stronger. The option activity at 47,800 strike will provide cues about Bank Nifty’s future direction ahead of the weekly expiry Wednesday," he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 20.50 points, or 0.09 per cent, lower at 21,678.50, hinting at a negative start for the domestic market on Wednesday.

Asian shares extend global selloff
Asian shares extended a global selloff on Wednesday while the dollar held gains as market optimism about early and aggressive US interest rate cuts ebbed ahead of the release of Fed minutes and jobs data. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.21 per cent. Japan's Nikkei shed 0.23 per cent; Australia's ASX 200 tanked 1.02 per cent; New Zealand's DJ dropped 0.96 per cent; China's Shanghai shed 0.08 per cent; Hong Kong's Hang Seng plunged 1.35 per cent; South Korea's KOSPI tumbled 1.78 per cent.

Oil prices nudge higher
Oil prices were marginally higher after closing lower on Tuesday. US crude futures drifted 0.1 per cent higher to $70.43 a barrel, after dropping more than 1 per cent on Tuesday, while Brent was flat at $75.86 a barrel.

Dollar edges higher
The dollar rose broadly on Wednesday and stood near a two-week high against its major peers, underpinned by a confluence of factors including elevated US Treasury yields and a cautious turn in risk sentiment that weighed on Wall Street. The dollar index hovered near a two-week peak and was last at 102.15. The euro was last at $1.0949 after having lost 0.95 per cent on Tuesday, while Sterling wobbled near a three-week low and changed hands at $1.2630, having slid 0.87 per cent. The yen was little changed at 141.98 per dollar.

Wall Street shares settle lower
The S&P 500 and Nasdaq Composite closed the first trading session of 2024 lower, weighed by a fall in Apple shares after a broker downgrade and declines among other big-tech names triggered by a move higher by Treasury yields. The S&P 500 lost 27 points, or 0.57 per cent, to end at 4,742.83 points, while the Nasdaq Composite lost 245.41 points, or 1.63 per cent, to 14,765.94. The Dow Jones Industrial Average rose 25.5 points, or 0.07 per cent, to 37,715.04.

Stocks in F&O ban list
Six stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Wednesday, January 03. The new addition namely-  Delta Corp, Indian Energy Exchange, Steel Authority of India (SAIL) and Zee Entertainment Enterprises (ZEEL)- will join the existing retentions including Balrampur Chini Mills and Hindustan Copper. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment.

FPIs sell shares worth Rs 1,602 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of 1,602.16 crore on Tuesday. Domestic institutional investors (DIIs) were net sellers of Indian equities to the tune of Rs 1,959.04 crore.

Rupee falls 11 paise against dollar
The rupee depreciated by 11 paise to settle at 83.32 against the dollar on Tuesday, amid a muted trend in domestic equities and increased dollar demand from importers. Forex traders said the volatility in crude oil prices and higher dollar index weighed on the Indian currency even as the unit found support due to fresh inflow of foreign funds.

Note: With inputs from PTI, Reuters and other agencies

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