Domestic equities were subdued on Tuesday ahead of the crucial RBI policy outcome. As we move towards the end of first quarter results season, action will likely shift to macro factors, with economic data due for release during the week.
"We expect the market to consolidate, while interest sensitive sectors are likely to be in focus," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Option data suggests a broader trading range in between 19000 to 20000 zones while an immediate trading range in between 19300 to 19700 zones.
Here's breaking down the pre-market actions:
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded 45 points, or 0.23 per cent, higher at 19,605.50, signaling that Dalal Street was headed for positive start on Wednesday.
Tech View: The short term trend of Nifty remains choppy. A move below 19500 levels could open further weakness down to the next lower supports of 19400-19350 levels. A decisive move above the hurdle of 19700 is likely to bring sharp upside momentum in the market.
India VIX: India VIX, which is a measure of the fear in the markets, rose 2% to settle at 11.32 levels.
US stocks dip
All three major Wall Street benchmarks finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating agency Moody's reignited fears about the health of U.S. banks and the economy.
Dow down 0.45%,
S&P dips 0.42%,
Nasdaq falls 0.79%
Asian shares fall
Stocks in Asia fell Wednesday as investors await consumer and producer price data from China that’s projected to show ongoing weakness.
S&P 500 futures were little changed as of 9:20 a.m. Tokyo time. The S&P 500 fell 0.4%
Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.9%
Hang Seng futures fell 0.3%
Japan’s Topix fell 0.3%
Australia’s S&P/ASX 200 rose 0.1%
Euro Stoxx 50 futures fell 1.2%
Oil prices ease
Oil prices eased in early trade on Wednesday as concerns over slow demand from top crude importer China grew after bearish trade data, outweighing fears over tighter global supply arising from production cuts by Saudi Arabia and Russia.
Brent crude futures fell 17 cents, or 0.2%, to $86.00 a barrel by 0039 GMT. U.S. West Texas Intermediate (WTI) crude was at $82.73 a barrel, down 19 cents, or 0.2%.
Stocks in F&O ban today
Indiabulls Housing Finance
Delta Corp
Hindustan Copper
India Cements
Balrampur Chini Mills
Chambal Fertilisers & Chemicals
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 were net sellers at Rs 711 crore on Tuesday. DIIs, meanwhile, bought shares worth Rs 537 crore.
Rupee
The rupee fell 9 paise to settle at 82.84 against the US dollar on Tuesday weighed down by safe-haven dollar demand and a muted trend in domestic equities.
Q1 results
Tata Power, Berger Paints, IRCTC, ZEE, Max Financial among others will announce their first quarter results today.