Nifty today: SGX Nifty up 40 points; here’s what changed for market while you were sleeping

Equity markets rallied on Tuesday on the back of positive macro economic data on the domestic front and optimistic global cues. Domestic investors will further take comfort from US inflation, which showed signs of easing, boosting Fed’s case to pause rate hikes this week.

“Nifty is finding support at lower levels and the overall setup is positive. We expect market momentum to continue with stock specific action in mid caps,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Option data suggests a broader trading range in between 18500 to 18900 zones while an immediate trading range in between 18600 to 18800 zones.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 39 points, or 0.21 per cent, higher at 18,824, signaling that Dalal Street was headed for positive start on Wednesday.

  • Tech View: For bulls, 18600 would act as a sacrosanct support zone. As long as the index is trading above the same, the positive sentiment is likely to continue till 18800-18850. However, below 18600, the uptrend would be vulnerable and below the same, traders may prefer to exit from the long positions.
  • India VIX: India VIX, which is a measure of the fear in the markets, rose 1.20% to settle at 11.11 levels.

US stocks up
The S&P 500 and Nasdaq reached their highest closes in 14 months on Tuesday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates on Wednesday.

Asian shares advance
An index of Asian equities rose for a fourth day amid bets for supportive monetary policy from central banks in China and Japan and a pause in interest rate hikes from the Federal Reserve.

Oil prices dip
Oil prices inched lower on Wednesday after industry data showed an unexpected rise in U.S. crude stocks, signalling weak demand to markets already worried about recession and disappointing Chinese economic data.

Dollar falls
The dollar fell to near a three-week low to the euro and a one-month low versus sterling on Wednesday, after unexpectedly soft U.S. inflation data cemented the view that the Federal Reserve will skip an interest rate hike later in the day.

Stocks in F&O ban today

1) Indiabulls Housing Finance

2) IEX

3) India Cements

4) Delta Corp

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 buyers at Rs 1,677 crore in Indian equities on Tuesday. DIIs, on the other hand, sold shares worth Rs 203 crore.

Rupee
The rupee gained 5 paise to settle at 82.38 against the US dollar on Tuesday, as a weak greenback overseas and strong macroeconomic data supported investor sentiments.

Macro News
US inflation data showed consumer prices barely rose in May, increasing expectations the Federal Reserve will pause hiking interest rates when it concludes a two-day meeting.

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