SGX Nifty drops 47 points: Asian markets, dollar, crude prices , FPI flows & more

Dalal Street is likely to open lower on Thursday, tracking negative global cues. Asian peers slipped in the early trade while US stocks posted big cuts after the Fed's rate hike. However, the US central banker suggested a pause in the interest rate hikes soon. The expiry of weekly F&O derivatives is also likely to influence trader sentiment. Here's what you should know before the opening bell:

Nifty outlook
Nifty formed a High Wave-type candle pattern on the daily chart. Normally, such patterns after a reasonable up move signal reversal of the upside, post confirmation. Nifty is still placed at the crucial hurdle of 17,200 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

"The short term trend remains positive. But, Nifty is not gaining momentum through the hurdle. Unless the immediate resistance of 17,200 is taken out decisively on the upside, the chances of sharp up move could be less. The market is also waiting for the cues from the Fed outcome in the US on Wednesday. Immediate support is at 17,020 levels," he said.

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange quoted 46.5 points, or 0.27 per cent, lower at 17,111.50, hinting at a negative start for the domestic market on Thursday.

Asian shares fall in early trade
Asian shares opened lower on Thursday as the US Fed increased rate hikes by 25 basis points (bps) and signaled a pause in interest rate hikes. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.23 per cent. Japan's Nikkei shed 0.41 per cent; Australia's ASX 200 dropped 0.75 per cent; New Zealand's DJ declined 0.35 per cent; China's Shanghai fell 0.11 per cent; Hong Kong's Hang Seng retreated 0.27 per cent and Seoul's Kospi slipped 0.28 per cent.

Oil prices snaps 3-day gains
Oil prices fell on Thursday following three sessions of gains, after US Federal Reserve Chair Jerome Powell re-stated his commitment to curbing inflation, including the possibility of more interest rate rises. Brent crude futures fell 80 cents, or 1 per cent, to $75.89 a barrel, while US West Texas Intermediate crude (WTI) dropped 84 cents, or 1.2 per cent, to $70.06.

Dollar slips after Fed comments
The dollar was under pressure near seven-week lows on Thursday as US bond yields fell sharply after the Federal Reserve sounded close to calling time on interest rate hikes. The Fed raised its benchmark funds rate by 25 basis points, as expected. The euro strengthened as much as 1.3 per cent to its highest since early February at $1.0912, while  Sterling bought $1.2282 after rising as high as $1.2334 overnight. Yen fell 0.7 per cent overnight and was edging lower in the Asian morning at 131.19.

US stocks settle lower
Wall Street gyrated to end sharply lower on Wednesday after the US Federal Reserve delivered a widely expected 25 basis point policy hike, while hinting that it was on the verge of pausing future increases in view of recent turmoil in the financial sector. The Dow Jones Industrial Average fell 530.49 points, or 1.63 per cent, to 32,030.11, the S&P 500 lost 65.9 points, or 1.65 per cent, to 3,936.97 and the Nasdaq Composite dropped 190.15 points, or 1.6 per cent, to 11,669.96.

Stocks in F&O ban
Two stocks- Indiabulls Housing Finance and Biocon- have been retained under F&O ban by National Stock Exchange (NSE) for Thursday, March 23. 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 62 cr
After consistent selling, provisional data available with NSE suggests FPIs turned net buyers of domestic stocks to the tune of Rs 61.72 crore on Wednesday. However, domestic institutional investors (DIIs) turned buyers of equities to the tune of Rs 383.51 crore.

Rupee falls 3 paise against dollar
Currency market was shut on Wednesday. On Tuesday, the rupee slipped 3 paise to close at 82.59 against the US dollar. A rebound in crude oil prices and unabated foreign fund outflows weighed on the local unit while a weak US dollar ahead of the interest rate decision and gains in domestic equities supported the rupee sentiment, forex dealers said.

Note: With inputs from PTI, Reuters and other agencies

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