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

Benchmark Nifty declined over 1% on Tuesday, broader market fell more sharply. Analysts say Indian equities are likely to remain weak amid elevated crude prices, renewed inflation concerns and uncertainty ahead of the US Federal Reserve’s policy decision. Investors will now focus on the Federal Reserve’s September 15–16 policy meeting, with the rate decision due on September 16, amid heightened uncertainty over the inflationary impact of higher crude prices.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded higher by 8.5 points, or 0.04 per cent, at 23,211, signaling that Dalal Street was headed for a muted start on Wednesday.


Tech View: The overall trend remains bearish, and any recovery should be used as a selling opportunity. Nifty has support at 23,000, while resistance has shifted to 23,350–23,500. A decisive close below 23,000 could extend the downside towards 22,500–22,600, near the weekly 200-SMA.

India VIX: India VIX, which is a measure of the fear in the markets, was rose 9% to settle at 13.43.

Asian shares steady

Asian stocks were broadly steady as elevated oil prices and rising bond yields kept investors cautious ahead of the Federal Reserve’s interest-rate decision.

• S&P 500 futures rose 0.1% as of 9:45 a.m. Tokyo time
• Hang Seng futures rose 0.3%
• Japan’s Topix rose 0.8%
• Australia’s S&P/ASX 200 was little changed
• Euro Stoxx 50 futures rose 0.3%

US stocks slip

US stocks slipped Tuesday after oil prices and the bond market cranked up the pressure on Wall Street. The S&P 500 fell 0.4%. The Dow Jones Industrial Average dropped 328 points, or 0.6%, and the Nasdaq composite sank 0.8%.

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

Stocks in F&O ban today

1) SAIL

2) Manappuram

3) Inox Wind

4) Kaynes

5) Bandhan Bank

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: Is unlisted investing a lottery? The story of a NSE investor who bought shares at Rs 1,827

FII/DII action

Foreign portfolio investors net sold shares worth Rs 2,978 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 2,686 crore.

Rupee

The rupee depreciated 38 paise to close at 95.92 against the US dollar on Tuesday, weighed down by escalating Middle East conflict and soaring Brent crude oil prices, which hit $108 per barrel.

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