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

Benchmark Nifty staged a sharp recovery on Tuesday of 434 points from its intraday low and closed at 22,722 with gains of 1.6%, supported by positive comments from the finance minister, strong buying in IT stocks. Analysts say Indian equities are likely to extend their recovery in the near term, supported by improving sentiment following India’s Finance Minister Nirmala Sitharaman’s remarks that the government is willing to hear stakeholders’ views on removing LTCG tax. Any potential change could further improve investor sentiment and support equity market participation, although no formal proposal has been announced so far.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 98 points, or 0.43 per cent, at 22,752.5, signaling that Dalal Street was headed for a negative start on Wednesday.


Tech View: In the coming session only a move above 22,600 will open further pullback towards 22,800 and 23,100 levels. Failure to move above 22,600 will signal corrective consolidation in the range of 22,200-22,600.

India VIX: India VIX, which is a measure of the fear in the markets, fell 7.4% to settle at 14.12 levels.

Asian shares rise

Asian stocks rebounded from two days of losses on expectations the Federal Reserve may not need to raise interest rates aggressively next year.

• S&P 500 futures were little changed as of 9:51 a.m. Tokyo time
• Hang Seng futures were little changed
• Nikkei 225 futures (OSE) rose 0.3%
• Japan’s Topix fell 0.2%
• Australia’s S&P/ASX 200 fell 0.9%
• Euro Stoxx 50 futures rose 0.2%

US stocks end lower

The Nasdaq ended lower on Tuesday, as chip stocks added to recent losses and investors parsed mixed quarterly results from Citigroup and other big US banks.

Gold prices flat

Gold prices were flat during early Asian trading on Wednesday as market participants hunkered down for US consumer price data that could shape expectations for the Federal Reserve's next policy decision.

Oil prices climb

Oil prices climbed on Wednesday as traders weighed supply risk from fighting between Yemen's Iran-allied Houthis and Saudi Arabia against the prospect of increased diesel from Russia.

Dollar declines

The dollar languished on Wednesday as traders awaited fresh signals on the timing for interest rate hikes to contend with persistent inflation.

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

Stocks in F&O ban today

1) Ambuja Cement

2) Kaynes

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: Sebi extends IPO-size flexibility on the back of soaring primary market activity

FII/DII action

Foreign portfolio investors net sold shares worth Rs 1,305 crore on Tuesday. DIIs, meanwhile, were net buyers at Rs 2,439 crore.

Rupee

The rupee strengthened for the third straight session on Tuesday and appreciated 42 paise to close at 95.36 against the US dollar, supported by various RBI measures aimed at reducing spot dollar demand and curbing excessive positioning in the foreign exchange market.

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