D-Street braces for weak opening on negative GIFT Nifty cues

Indian benchmark indices opened on a weak-to-flat note and remained under pressure throughout the session, ultimately closing near the day's lows. Elevated Brent crude oil prices, supported by continued uncertainty around the geopolitical situation, remained a key overhang on investor sentiment and kept risk appetite subdued. Analysts say immediate bias in the index continues to remain down and only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the down trend.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 53.5 points, or 0.23 per cent, at 23,660, signaling that Dalal Street was headed for a negative start on Wednesday.


Tech View: Going forward, 23,600 is likely to act as a crucial support for the Nifty. If the index holds above 23,600, we may see a decent recovery, which could take the Nifty towards 24,000 and higher in the short term.

India VIX: India VIX, which is a measure of the fear in the markets, was flat to settle at 11.16.

Asian shares gain

Asian chip stocks extended their recent gains on sustained investor interest in the artificial-intelligence trade. Escalating Middle East hostilities pushed Brent crude toward $100 a barrel.

• S&P 500 futures were little changed as of 9:23 a.m. Tokyo time
• Hang Seng futures rose 0.2%
• Japan’s Topix rose 0.2%
• Australia’s S&P/ASX 200 rose 0.1%
• Euro Stoxx 50 futures rose 0.1%

US stocks fall

US stocks ended lower on Tuesday as renewed concerns over the threat artificial intelligence poses to software companies weighed on the S&P 500, while rising oil prices and shifting expectations for Federal Reserve policy added to pressure on equities, according to Reuters.

Oil prices rise

Oil prices jumped for the fourth straight session, gaining ​more than $1 in ​early trade on Wednesday after Iran launched fresh ​attacks on US military assets in the Gulf as the war between Washington and Tehran continued to spill out across the region.

Gold subdued

Gold prices eased on Wednesday as concerns that escalating ​Middle East tensions could ​drive inflation higher reinforced bets on elevated interest ​rates, with key U.S. inflation data due later this week.

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

Stocks in F&O ban today

1) SAIL

2) LIC Housing Finance

3) Inox Wind

4) Kaynes

5) Manappuram

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.

Rupee

The rupee fell 18 paise to close at 94.74 against the American currency on Tuesday as geopolitical tensions in West Asia and rising Brent crude prices nearing $99 per barrel weighed on investor sentiment.

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