“The expectation of RBI to end the rate hike cycle after India’s CPI inflation eased to an 18-month low of 4.7% in April and remained under RBI’s comfort zone, cheered markets. Even WPI inflation declined for the 11th straight month, falling to -0.92% in April. All these factors contributed to positivity in the market, despite mixed global cues. Overall, we maintain a positive outlook with a “Buy on dips” strategy,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
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 45.5 points, or 0.25 per cent, higher at 18,449, signaling that Dalal Street was headed for positive start on Tuesday.
- Tech View: The underlying short term trend of Nifty continues to be positive. The market is still facing hurdles around 18400 levels and the intraday weakness is emerging from the highs. Any dips could be a buying opportunity around 18280-18200 levels. A sharp upside above 18400 could open further up move towards 18600-18800 levels in the near term.
- India VIX: India VIX, which is a measure of the fear in the markets, rose 2.49% to settle at 13.17 levels.
US stocks gain
The S&P 500 and the Dow ended with modest gains on Monday after manufacturing data raised concerns about a slowing U.S. economy that could help bring down inflation amid ongoing debt ceiling negotiations, while a rise in Meta shares helped lift the Nasdaq.Asian shares advance
Asian equities advanced, led by Japanese shares and tech stocks, with traders looking for clues of any breakthrough in negotiations in Washington to avert a US default.
Oil prices extend gains
Oil prices rose for a second day early on Tuesday, as U.S. plans to purchase oil for the Strategic Petroleum Reserve (SPR) lent support while raging wildfires in Canada fuelled supply worries.
Dollar on back foot
The U.S. dollar remained under pressure on Tuesday, weighed down by the risk of a U.S. default as a standoff between Democrats and Republicans over raising the debt ceiling showed few signs of being resolved.
Stocks in F&O ban today
1) BHEL
2) PNB
3) Delta Corp
4) GNFC
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 (FPI) net bought shares worth Rs 1,685 crore on Monday. DIIs too bought stock worth Rs 191 crore.
Rupee
The rupee fell 15 paise to close at 82.33 (provisional) against the US currency on Monday, weighed down by the strength of the American currency in the overseas market.
Q4 results today
Airtel, Bank of Baroda, Indian Oil, Jindal steel and a slew of other companies will announce their quarterly results today.
