D-St set for a negative opening as GIFT Nifty signals weak start

Benchmark Nifty extended its rebound on expiry day, supported by a sharp decline in India VIX and Brent crude oil prices slipping below the $100-a-barrel mark. Investor focus now shifts to the RBI policy outcome today, while continued rupee weakness remained an overhang, with the currency falling 27 paise to 96.56 per dollar.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 34 points, or 0.15 per cent, at 22,740, signaling that Dalal Street was headed for a negative start on Wednesday.

Tech View: In the short term, as long as the index remains above 22,600, the sentiment might remain positive, with resistance placed at 22,850. A sustained move above 22,850 could trigger further recovery. However, failure to move beyond 22,850 might trigger a correction in the market.

India VIX: India VIX, which is a measure of the fear in the markets, fell 7.1% to settle at 13.61 levels.

Asian shares near record high

Asian shares held near a record after optimism over the earnings outlook propelled Wall Street benchmarks to fresh all-time highs. Crude oil climbed.

• S&P 500 futures were little changed as of 10:02 a.m. Tokyo time
• Hang Seng futures were little changed
• Nikkei 225 futures (OSE) fell 0.3%
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 was little changed
• Euro Stoxx 50 futures fell 0.5%

US stocks end higher

US stocks ended higher on Tuesday as crude prices steadied and US Treasury yields eased, offering some reprieve from concerns that have preoccupied investors in recent weeks, and allowing markets to turn their attention to the approaching third-quarter reporting season.

Oil prices rise

Oil prices rose on Wednesday as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen's Iran-backed Houthis on Saudi Arabia against increased supplies of Middle East crude.

Gold subdued

Gold prices were flat on Wednesday as focus shifted to minutes from the US Federal Reserve's meeting for fresh clues on the monetary policy path.

Dollar holds losses

The US dollar remained lower on Wednesday after stress in European bond markets abated and as eyes turned to the release of Federal Reserve minutes and speeches by its policymakers for signals on a potential rate hike.

Read more: Ahead of Market: 10 things that will decide stock market action on Wednesday

Stocks in F&O ban today

1) SAIL

2) Bandhan Bank

3) Ambuja Cement

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: How a 9-year-old Warren Buffett learnt a lesson on compounding by rolling snowballs on the lawn of his Nebraska home

FII/DII action

Foreign portfolio investors net sold shares worth Rs 2,961 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 5,089 crore.

Rupee

The rupee declined 8 paise to settle at 96.43 against the US dollar on Tuesday amid sustained outflows of foreign capital and uncertainties over a US-Iran deal.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.