GIFT Nifty up 41 points: Asian markets, crude oil prices, dollar movement, Q1 results & more

Domestic stock indices are likely to open with mild gains on Wednesday despite mixed cues from global markets. Asian stocks were mixed while US stocks dropped overnight after Moody's downgraded 10 mid- and small-sized lenders. China economic data is also weighing on global markets. Back home, the RBI will announce its monetary policy tomorrow, while the next wave of Q1 earnings will also trigger stock-specific action. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty formed a small negative candle on the daily chart that has almost engulfed the previous small positive candle. This pattern indicates range bound action ahead with weak bias, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.  "Nifty is currently placed at the immediate resistance of the down sloping trend line around 19,650-19,700 levels. The negative chart pattern of lower top-bottom is intact as per daily timeframe and the current pattern indicates a possibility of a new lower-top of the sequence. We need confirmation of such a reversal pattern," he said.

GIFT Nifty signals a positive start
Nifty futures on the Nifty International Exchange traded 41 points, or 0.21 per cent, higher at 19,601.50, hinting at a positive start for the domestic market on Wednesday.

Asian stocks mixed amid China inflation data
Asian shares were on the defensive on Wednesday after China inflation data confirmed the recovery in the world's second-biggest economy is losing steam, while resurfacing concerns about US bank stability also capped sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.08 per cent. Japan's Nikkei shed 0.06 per cent; Australia's ASX 200 added 0.07 per cent; New Zealand's DJ fell 0.10 per cent; China's Shanghai dropped 0.31 per cent; Hong Kong's Hang Seng tanked 0.58 per cent and South Korea's Kospi surged 0.95 per cent.

Oil prices drop in early trade
Oil prices eased in early trade on Wednesday as concerns over slow demand from top crude importer China grew after bearish trade data, outweighing fears over tighter global supply arising from production cuts by Saudi Arabia and Russia. Brent crude futures fell 17 cents, or 0.2 per cent, to $86.00 a barrel by 0039 GMT. US West Texas Intermediate (WTI) crude was at $82.73 a barrel, down 19 cents, or 0.2 per cent.

Dollar index stays above 102 level

Markets are waiting for the US inflation report on Thursday, which is expected to show headline inflation picking up slightly in July to an annual 3.3 per cent pace, while the core rate is seen unchanged at 4.8 per cent. The US dollar held gains at 102.49 against a basket of currencies, having risen 0.5 per cent overnight on safe-haven demand.

Wall Street stocks settle lower
All three major Wall Street stock indices finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating agency Moody's reignited fears about the health of US banks and the economy. The Dow Jones Industrial Average fell 158.64 points, or 0.45 per cent, to 35,314.49, the S&P 500 lost 19.06 points, or 0.42 per cent, at 4,499.38 and the Nasdaq Composite dropped 110.07 points, or 0.79 per cent, to 13,884.32.

Q1 results today
Tata Power Company, Berger Paints, Trent, PI Industries, Indian Railway Catering & Tourism Corporation, Abbott India, Bharat Forge, Uno Minda, Max Financial Services, Zee Entertainment Enterprises, Bata India, SJVN, JB Chemicals & Pharmaceuticals, Kalyan Jewellers India, Ratnamani Metals & Tubes, Natco Pharma, KIOCL, V-Guard Industries and BSE are among the companies that will announce their earnings for the June 2023 quarter during the day.

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Stocks in F&O ban
Six stocks- Chambal Fertilisers & Chemicals, Delta Corp, India Cements, Balrampur Chini Mills, Indiabulls Housing Finance, and Hindustan Copper- have been put under the F&O segment ban by the National Stock Exchange (NSE) for Wednesday, August 9. 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 sell shares worth Rs 711 crore
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 711.34 crore on Tuesday. Domestic institutional investors (DIIs) were net buyers of Indian equities to the tune of Rs 537.31 crore.
 
Rupee falls 16 paise against dollar
The rupee depreciated by 16 paise to settle at more than an eight-month low of 82.91 against the US dollar on Tuesday weighed down by safe-haven dollar demand and a muted trend in domestic equities. Foreign fund outflows also weighed on the local unit, analysts said.

Note: With inputs from PTI, Reuters and other agencies

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