GIFT Nifty down 23 points: Asian markets, crude oil prices, dollar movement, Q2 earnings & more

Domestic benchmark indices are likely to open lower on Thursday, following weak global cues. US stocks tumbled overnight, as a rising US bond yields spooked investors. Asian stocks were trading in the red ahead of the Fed Chair Jerome Powell's speech due later in the day. Back home, a host of blue-chip FMCG companies will announce their Q2 earnings. Stock-specific actions are likely amid the weekly F&O expiry. Here's what you should know before the Opening Bell:

Nifty outlook
Ruchit Jain, Lead Research, 5paisa said while market participants were looking for a breakout of 19,850,
the index witnessed a reversal from the hurdle and short formations dragged the index lower. The level now becomes a crucial hurdle, he said. “On the lower side, the 19,635 level, followed by the 19,500-19,450 range, will be seen as the immediate support levels," he added.

Nifty Bank outlook
Kunal Shah of LKP Securities said that the Nifty Bank experienced a bearish phase, encountering a strong resistance at 44,500 level, where the highest open interest is concentrated. "The weak undertone in the market suggests a preference for "selling on price rallies” and a breach of the 43,800-support level is expected to lead to further selling pressure. The index's position below the 20-DMA reinforces the bearish sentiment in the near term, he said.

GIFT Nifty signals a negative start
Nifty futures on the NSE International Exchange traded 22.50 points, or 0.11 per cent, lower at 19,571, hinting at a negative start for the domestic market on Thursday.

Asian shares fall at open
Asian shares kicked off Thursday on a bearish note as another surge in the US treasury yields soured the sentiments ahead of the Fed Chair's commentary due later today. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.77 per cent. Japan's Nikkei tanked 1.49 per cent; Australia's ASX 200 tumbled 1.22 per cent; New Zealand's DJ plunged 1.22 per cent; China's Shanghai shed 0.51 per cent; Hong Kong's Hang Seng added 0.09 per cent; South Korea's Kospi dropped 1.24 per cent.

Oil falls as Israel embargo concerns fade
Oil prices fell on Thursday, reversing gains in the previous session, after OPEC showed no signs of supporting Iran's call for an oil embargo on Israel and as the United States plans to ease Venezuela sanctions to allow more oil to flow globally. Brent futures for December fell 74 cents to $90.76 a barrel. US West Texas Intermediate (WTI) futures for November, which expires on Friday, dropped 57 cents to trade at $87.75 per barrel.

Dollar holds firm ahead of Powell's speech
The dollar held the yen near a two-week low, as growing expectations the US Federal Reserve will keep rates higher for longer had the greenback and US Treasury yields on the rise overnight and markets awaited a speech by Fed Chair Powell. The dollar index held steady near Wednesday's high of 106.63 in the Asian morning. The Japanese yen strengthened slightly to 149.77 per dollar. Against the dollar, the euro mostly flat at $1.05365 after falling overnight. Sterling stood steady at $1.2137.

Wall Street stocks settle sharply lower
US stocks ended sharply lower on Wednesday, with the S&P 500 and Nasdaq falling more than 1 per cent each, as Treasury yields rose again and investors assessed the latest batch of quarterly corporate results and forecasts. Mounting tensions in the Middle East stoked risk aversion. The Dow Jones Industrial Average fell 332.57 points, or 0.98 per cent, to 33,665.08, the S&P 500 lost 58.6 points, or 1.34 per cent, to 4,314.6 and the Nasdaq Composite dropped 219.45 points, or 1.62 per cent, to 13,314.30.

Q2 results today
Hindustan Unilever, ITC, UltraTech Cement, Nestle India, Havells India, Tata Communications, Mphasis, United Breweries, Jindal Stainless, Metro Brands, Coforge, Voltas, Hatsun Ago Products, Cyient India, PVR Inox, Tanla Platforms, Equitas Small Finance Bank, Ramkrishna Forgings, HFCL, Mastek, South India are among the companies which announced their earnings for the quarter ended on September 2023.

Stocks in F&O ban list
As many as nine stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Thursday, October 19. Stocks including Steel Authority of India (SAIL), Delta Corp, Indiabulls Housing Finance, Manappuram Finance, Balrampur Chini Mills, Hindustan Copper and India Cements will remain under the ban. 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 1,832 crore
Provisional data available with NSE suggest that FPIs were net sellers of domestic stocks to the tune of Rs 1,831.84 crore on Wednesday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 1,469.50 crore.

Rupee falls 3 paise against dollar
The rupee settled 3 paise lower at 83.28 against the US dollar on Wednesday, tracking negative cues from domestic equity markets amid surging crude oil prices overseas. However, fresh foreign capital inflows and a weak greenback against major rivals overseas favoured the rupee and restricted the loss, forex traders said.


Note: With inputs from PTI, Reuters and other agencies

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