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

On Tuesday, Nifty fell as much as 211 points, recovering 0.6% from the days low to close at 22,716. The elevated crude, rupee at two-month lows and relentless foreign selling continue to weigh on sentiment. Analysts say Indian equities are likely to consolidate after sliding to a six-month low, an eight straight weekly decline, the longest losing run since 2020.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a muted start

GIFT Nifty on the NSE IX traded lower by 28 points, or 0.12 per cent, at 22,802, signaling that Dalal Street was headed for a muted start on Wednesday.


Tech View: In terms of levels, immediate resistance is likely to be encountered in the 22800-22900 band, followed by a stronger hurdle in 23000-23100 on the upside, while on the downside, the 22550-22500 zone marked by current sessions low is an immediate support, followed by a stronger cushion at the 22400-22500 band.

India VIX: India VIX, which is a measure of the fear in the markets, fell 1.65% to settle at 13.41 levels.

Asian shares gain

Asian stocks gained for the first time in three sessions as easing oil-market concerns helped stem a bruising bond selloff ahead of a crucial US inflation reading. The dollar was set for its best month since June.

• S&P 500 futures rose 0.1% as of 10:09 a.m. Tokyo time
• Hang Seng futures fell 0.3%
• Japan’s Topix rose 0.5%
• Australia’s S&P/ASX 200 rose 0.2%
• Euro Stoxx 50 futures rose 0.5%

US stocks modestly lower

US stocks ended the session slightly lower on Tuesday, as government bond yields continued their ascent ahead of inflation and labor market data, while investors assessed comments from Federal Reserve officials for the path of interest rates.

Oil prices rise

Oil prices rose on Wednesday after US President Donald Trump denied he would be willing to ease sanctions on Iran while Qatar pushed for peace talks, after falling in the previous session on a recovery in crude supply from the Middle East.

Gold steadies

Gold held steady on Wednesday but prices remained on track for a monthly loss as expectations of higher interest rates weighed on the market, while investors turned their attention to US inflation data for clues on the Federal Reserve's policy path.

Dollar set for September rise

The dollar stood near this year's high versus the euro on Wednesday and was poised for the largest monthly rise against it for 14 months, powered by US growth and rising US interest rates in contrast to the energy and debt worries swirling in Europe.

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

Stocks in F&O ban today

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.

Read more: Nifty sees worst September series in 25 years. What does October hold?

FII/DII action

Foreign portfolio investors net sold shares worth Rs 9,980 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 6,953 crore.

Rupee

The rupee settled marginally higher at 95.94 on Tuesday, just a tad over the psychologically important 96 per dollar level, driven by possible RBI intervention and a pull-back in oil prices following hopes of negotiations between the US and Iran.

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.