D-St set for a cautious opening as GIFT Nifty signals muted start

The benchmark Nifty extended its losing streak to six consecutive sessions, declining 1.7% over the past week and closing 0.5% lower at 24,156 on Tuesday. Analysts say Indian equities are likely to remain under pressure in the near term as elevated crude oil prices, US-Iran tensions and weak global cues weigh on sentiment. With Brent crude rising above $90 per bbl and the reopening of the Strait of Hormuz remaining unresolved, oil prices will remain a key monitorable for the rupee, inflation and foreign flows.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded higher by 29.5 points, or 0.12 per cent, at 24,210, signaling that Dalal Street was headed for a muted start on Wednesday.


Tech View: Overall sentiment might favour the bears as the index continues to lose bullish momentum. On the lower end, the fall might extend towards 24050–24000, where initial support is likely to emerge. On the other hand, resistance is visible at 24240.

India VIX: India VIX, which is a measure of the fear in the markets, rose 0.6% to settle at 11.39 levels.

Asian stocks fall

Asian stocks dropped as a semiconductor selloff deepened, with investors retreating from one of the year’s hottest trades amid elevated bond yields and geopolitical uncertainty. Treasuries stabilized after recent losses.

• S&P 500 futures fell 0.1% as of 9:04 a.m. Tokyo time
• Hang Seng futures fell 0.3%
• Japan’s Topix fell 1.6%
• Australia’s S&P/ASX 200 fell 0.5%
• Euro Stoxx 50 futures fell 1%

US stocks decline

Wall Street closed lower on Tuesday with semiconductors leading technology declines as Middle East uncertainty pushed bond yields to multiyear peaks, feeding concerns about borrowing costs and inflation.

Oil edges up

Oil prices ticked higher in early trade on Wednesday, climbing for ​a fourth straight day on ​supply uncertainty as investors weighed conflicting messages from Tehran ​and Washington on whether the Strait of Hormuz is open to ships.

Gold inches higher

Gold prices edged higher in early Asian trade on Wednesday as ​U.S. Treasury yields eased from ​recent highs, while market participants awaited the release of ​the Federal Reserve's meeting minutes.

Dollar drifts lower

The US dollar drifted near multi-month lows against major peers ​on Wednesday as Treasury yields ​eased from recent highs, with investors awaiting minutes of the Federal ​Reserve's latest policy meeting for clues on the path of interest rates.

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

Stocks in F&O ban today

1) Bandhan Bank

2) LIC

3) Manappuram

4) SAIL

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.

FII/DII action

Foreign portfolio investors net bought shares worth Rs 1,651 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 2,579 crore.

Rupee

The Indian rupee closed marginally weaker on Tuesday as likely central bank intervention stood between the South Asian unit and the pressure from elevated oil prices and surging global bond yields.

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