Pre-market: What changed overnight and top cues you must know before Opening Bell
Good morning, Dear ETMarkets Readers!
With the RBI policy outcome due later in the day, it is going to set the market trajectory not just for the day but also for the near term. Quarterly earnings of 180 companies may also add to the volatility.
Let’s check out what else might matter to Dalal Street on Wednesday:
Cues from Singapore negative
At 6.30 am, Nifty50 futures on the Singapore Stock Exchange were trading 12 points lower at 8,787, indicating a flat to negative opening for the domestic market.
Interest rate futures market bets on rate cut
Open positions in the interest rate futures market, or the number of outstanding contracts, soared ahead of the Reserve Bank of India's monetary policy statement on Wednesday, amid speculation of a quarter-point rate cut. Some investors, though, were sceptical about a rate reduction, given the ample liquidity and lower market interest rates.
Nifty50 forms ‘Short Bearish’ candle
The index is expected to see support around its Tuesday’s low of 8,741, while the immediate resistance seen at the 8,820 level. To confirm any trend reversal, the index needs to break below the 8,700 level on a closing basis. Sameet Chavan, Chief Analyst for Technicals & Derivatives, Angel Broking, said Tuesday's low of 8,741 would be seen as a key support in the forthcoming sessions as a sustainable move below it may lead to further correction towards the 8,707-8,685 region.
180 firms to report Q3 earnings
Hero MotoCorp, NTPC, Cipla and Bharat Forge are some of companies due to announce their quarterly results during the day. Tata Chemicals, Coffee Day Enterprises, United Breweries, Thermax, Tata Chemicals, Sobha and City Union Bank are also scheduled to report earnings during the day.
Rupee snaps winning streak
The domestic currency snapped a nine-day winning streak to close at 67.41, down 19 paise or 0.28 per cent, amid fresh bouts of dollar demand ahead of outcome of RBI's sixth bimonthly policy review meet on Wednesday.
EU hopeful on Greece economy
The EU firmly maintained that Greece economy remained on track despite a withering opinion by IMF that Athens needed major deep debt relief and less austerity to prosper. A standoff between the eurozone and the IMF has dragged on for months, raising fears of a new debt crisis.
Oil prices tumbled
Oil prices that tumbled more than 1 per cent on Tuesday fell further after settlement, pressured by growing crude stockpiles in the United States as evidence of a burgeoning revival in US shale production could complicate efforts by Opec and other producers to reduce a supply glut, Reuters reported. Brent crude settled 67 cents, or 1.2 per cent, lower at $55.05 a barrel, while US crude fell by 84 cents, or 1.6 per cent, to $52.17.
Axis Bank to divest stake in Experian India
The private sector lender said it would divest 10 per cent stake in credit information company Experian India for Rs 64 crore. “The bank has signed an agreement for sale of 1.4 crore equity shares (10 per cent of total outstanding shares) of Experian Credit Information Company of India (Experian India) at Rs 45.70 per share resulting in a total cash consideration of Rs 64 crore (transaction),“ Axis Bank said in a regulatory filing.
Global markets update
Asian markets across Japan and Australia were trading with a positive bias in early morning trade on Wednesday, followed a positive closing for US stocks overnight. US benchmark Dow Jones Industrial Average index rose 37.87 points, or 0.19 per cent, to 20,090 in overnight trade. The S&P500 gained 0.52 points, or 0.02 per cent, to 2,293. The Nasdaq Composite index added 10.67 points, or 0.19 per cent, to 5,674.
With the RBI policy outcome due later in the day, it is going to set the market trajectory not just for the day but also for the near term. Quarterly earnings of 180 companies may also add to the volatility.
Let’s check out what else might matter to Dalal Street on Wednesday:
Cues from Singapore negative
At 6.30 am, Nifty50 futures on the Singapore Stock Exchange were trading 12 points lower at 8,787, indicating a flat to negative opening for the domestic market.
Interest rate futures market bets on rate cut
Open positions in the interest rate futures market, or the number of outstanding contracts, soared ahead of the Reserve Bank of India's monetary policy statement on Wednesday, amid speculation of a quarter-point rate cut. Some investors, though, were sceptical about a rate reduction, given the ample liquidity and lower market interest rates.
Nifty50 forms ‘Short Bearish’ candle
The index is expected to see support around its Tuesday’s low of 8,741, while the immediate resistance seen at the 8,820 level. To confirm any trend reversal, the index needs to break below the 8,700 level on a closing basis. Sameet Chavan, Chief Analyst for Technicals & Derivatives, Angel Broking, said Tuesday's low of 8,741 would be seen as a key support in the forthcoming sessions as a sustainable move below it may lead to further correction towards the 8,707-8,685 region.
180 firms to report Q3 earnings
Hero MotoCorp, NTPC, Cipla and Bharat Forge are some of companies due to announce their quarterly results during the day. Tata Chemicals, Coffee Day Enterprises, United Breweries, Thermax, Tata Chemicals, Sobha and City Union Bank are also scheduled to report earnings during the day.
Rupee snaps winning streak
The domestic currency snapped a nine-day winning streak to close at 67.41, down 19 paise or 0.28 per cent, amid fresh bouts of dollar demand ahead of outcome of RBI's sixth bimonthly policy review meet on Wednesday.
EU hopeful on Greece economy
The EU firmly maintained that Greece economy remained on track despite a withering opinion by IMF that Athens needed major deep debt relief and less austerity to prosper. A standoff between the eurozone and the IMF has dragged on for months, raising fears of a new debt crisis.
Oil prices tumbled
Oil prices that tumbled more than 1 per cent on Tuesday fell further after settlement, pressured by growing crude stockpiles in the United States as evidence of a burgeoning revival in US shale production could complicate efforts by Opec and other producers to reduce a supply glut, Reuters reported. Brent crude settled 67 cents, or 1.2 per cent, lower at $55.05 a barrel, while US crude fell by 84 cents, or 1.6 per cent, to $52.17.
Axis Bank to divest stake in Experian India
The private sector lender said it would divest 10 per cent stake in credit information company Experian India for Rs 64 crore. “The bank has signed an agreement for sale of 1.4 crore equity shares (10 per cent of total outstanding shares) of Experian Credit Information Company of India (Experian India) at Rs 45.70 per share resulting in a total cash consideration of Rs 64 crore (transaction),“ Axis Bank said in a regulatory filing.
Global markets update
Asian markets across Japan and Australia were trading with a positive bias in early morning trade on Wednesday, followed a positive closing for US stocks overnight. US benchmark Dow Jones Industrial Average index rose 37.87 points, or 0.19 per cent, to 20,090 in overnight trade. The S&P500 gained 0.52 points, or 0.02 per cent, to 2,293. The Nasdaq Composite index added 10.67 points, or 0.19 per cent, to 5,674.
