GIFT Nifty up 31 points: Asian markets, crude oil prices, dollar movement, Q1 results & more

Domestic stock indices are likely to extend gains on Tuesday on upbeat global cues. US stocks settled higher after the Fed signalled an end to its rate hike cycle. Asian markets followed the suit. All eyes are now on the kick start of domestic Q1 earnings season. Here's what you should know before the Opening Bell:

Nifty outlook

Nifty faced resistance in the 19,430-19,450 range where the 20-hour moving average is placed. On the daily charts, Nifty is in the process of retracing the rise it has witnessed in the last couple of weeks, said Jatin Gedia, Technical Research Analyst at Sharekhan.

"The crucial Fibonacci retracement level and gap area coincide at 19,200-19,180, which could act as a support zone from a short-term perspective. On the upside, the 19,520-19,550 range shall act as an immediate hurdle zone from a short-term perspective. A daily momentum indicator has a positive crossover and, thus, any dip should be bought into," he said.

GIFT Nifty signals a positive start
Nifty futures on the Nifty International Exchange traded 30.5 points, or 0.16 per cent, higher at 19,487, hinting at a positive start for the domestic market on Tuesday.

Asian stocks gain in early trade

Asian shares bounced and the safe-haven dollar edged lower on Tuesday as investors hoped this week's US inflation data supports an imminent end to the Fed rate hikes. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.98 per cent. Japan's Nikkei gained 0.20 per cent; China's Shanghai Composite index added 0.14 per cent; Hong Kong's Hang Seng rose 0.80 per cent and South Korea's Kospi rallied 1.22 per cent.

Oil prices up on weak dollar, supply cuts

Oil prices edged higher on Tuesday, recouping some of the losses from the previous session, as traders focused on supply cuts by the world's biggest oil exporters Saudi Arabia and Russia and a weaker dollar. Brent crude futures rose 23 cents, or 0.3 per cent, to $77.92 a barrel by 0153 GMT, and US West Texas Intermediate crude was up 32 cents, or 0.4 per cent, at $73.31.

Dollar slips as Fed hike cycle nears end
The dollar weakened on Tuesday after the US Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle, though it traded in a tight range ahead of a key US inflation report. Sterling, meanwhile, hit a fresh 15-month high of $1.2869, while the euro tacked on 0.03 per cent to $1.1004. The Japanese yen rose to a near one-month high of 141.15 per dollar on Tuesday while the yuan was last marginally higher at 7.2254 per dollar in the offshore market.

US stocks settle higher

US stocks ended higher on Monday following last week's losses, while the Fed officials' comments bolstered the view that the US central bank may be near the end of its tightening cycle. The Dow Jones Industrial Average rose 209.52 points, or 0.62 per cent, to 33,944.4, the S&P 500 gained 10.58 points, or 0.24 per cent, at 4,409.53 and the Nasdaq Composite added 24.77 points, or 0.18 per cent, at 13,685.48.

Q1 results today

Elecon Engineering Company, PCBL, Plastiblends India, S & T Corporation, Excel Realty N Infra are among the companies that will announce their earnings for the June quarter during the day.

Stocks in F&O ban
Seven stocks stocks - Indiabulls Housing Finance, Punjab National Bank, Zee Entertainment, Granules India, Delta Corp, India Cements and Bharat Heavy Electricals (BHEL) - have been put under the F&O segment ban by the National Stock Exchange (NSE) for Tuesday, July 11. Derivative contracts in a security are banned when they cross 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 588 crore
Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 588.48 crore on Monday. However, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 288.38 crore.

Rupee rises 2 paise against dollar

The rupee consolidated in a narrow range and settled for the day higher by 2 paise at 82.59 against the US dollar on Monday, amid a muted trend in domestic equities. Rupee is trading in a narrow range as the softness in the dollar and sustained FII inflows were negated by risk aversion in global markets, forex traders said.

Note: With inputs from PTI, Reuters and other agencies

 

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