Equity markets bounced back on Tuesday, recovering some of the losses seen on Monday, taking comfort from India’s CPI inflation which hit a 3-month low of 5.1%.

Markets today might react to US inflation data, which will provide some cues on the US Fed’s interest rate trajectory.

“Going ahead Nifty is expected to remain in the broader range given the lack of positive triggers globally and mixed set of domestic Q3 earnings which too is unable to provide any support,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.

Here’s breaking down the pre-market actions:

GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 204 points, or 0.93 per cent, at 21,614.50, signaling that Dalal Street was headed for negative start on Wednesday.

  • Tech View: The short-term trend of Nifty remains choppy with alternative candle formations like bull and bear. A sustainable move above the immediate resistance of 21800-21850 levels could open sharp upside towards another resistance of 22000-22100 levels in the near term, said Nagaraj Shetti of HDFC Securities.
  • India VIX: India VIX, which is a measure of the fear in the markets, fell 1.59% to settle at 15.81 levels.

US stocks fall
Wall Street’s main indexes tumbled on Tuesday after a higher-than-expected consumer inflation reading pushed back market expectations of imminent interest rate cuts, driving U.S. Treasury yields higher.

  • Dow dips 1.36%,
  • S&P down 1.37%,
  • Nasdaq falls 1.79%

Asian stocks dip
Asian stocks tracked a drop on Wall Street following hotter-than-expected US inflation data, while a slump in the yen past 150 per dollar triggered a warning from Japan.

  • S&P 500 futures were little changed as of 9:06 a.m. Tokyo time. The S&P 500 fell 1.2%
  • Nasdaq 100 futures were little changed. The Nasdaq 100 fell 1.6%
  • Hang Seng futures were unchanged
  • Japan’s Topix fell 0.8%
  • Australia’s S&P/ASX 200 fell 1.2%
  • Euro Stoxx 50 futures fell 1.2%

Dollar gains
The dollar traded near three-month highs to major peers on Wednesday as traders pushed back bets for a first Federal Reserve interest rate cut following surprisingly hot U.S. inflation figures overnight.

Stocks in F&O ban today

1) Hindustan Copper

2) India Cements

3) Indus Tower

4) PNB

5) ZEE

6) Ashok Leyland


8) Balrampur Chini Mills

9) Delta Corp

10) SAIL

11) Aurobindo Pharma

12) Biocon

13) 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.

FII/DII action
Foreign portfolio investors were net buyers at Rs 376 crore on Tuesday. DIIs, meanwhile, bought shares worth Rs 274 crore.

The rupee fell 8 paise to close at 83.08 against the US dollar on Tuesday, as a strong greenback against major currencies overseas and rising crude oil prices dented investor sentiments.

FII data
The net short of FIIs reduced from Rs 86,335 crore on Monday to Rs 82,275 crore on Tuesday.

Q3 results
M&M, Muthoot Finance, Sun TV and a slew of other companies will announce their third quarter results today.

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