SGX Nifty down 40 points; here's what changed for market while you were sleeping

Domestic equities are expected to open with a negative bias after stronger-than-expected US retail sales clouded the inflation outlook and hopes that the Federal Reserve could ease its aggressive interest rate hikes.

Any further weakness in global markets could trigger some selling pressure, but the downside is seen limited. Positioning in the options of Nifty 50 indicates a trading range of 18000-18400 levels.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 39.5 points, or 0.21 per cent, lower at 18,440.50, signaling that Dalal Street was headed for a negative start on Thursday.

• Tech View: Technical indicators continue to show strength in the Nifty 50 index and it can test 18500 level if it sustains above 18350 level.
• India VIX: The index ended 3.2% higher at 15.10 points amid selling pressure in the market.

Wall Street ends lower
Wall Street's main indexes ended lower on Wednesday as a grim outlook from Target spurred fresh concerns about retailers heading into the crucial holiday season, while semiconductor shares slid after Micron's supply cut.

• Dow dips 0.12%
• S&P down 0.83%
• Nasdaq falls 1.54%

Asian shares mixed
Asian stocks were mixed on Thursday while the U.S. dollar stabilized and Treasury yields remained depressed as investors tried to assess the outlook for Federal Reserve policy following stronger-than-expected retail sales data. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.77%.

• S&P 500 futures rose 0.2% as of 8:12 a.m. in Tokyo. The S&P 500 fell 0.8%
• Nasdaq 100 futures rose 0.3%. The Nasdaq 100 fell 1.5%
• Nikkei 225 futures fell 0.3%
• Australia’s S&P/ASX 200 Index rose 0.2%
• Hang Seng Index futures fell 1%

Oil falls
Oil prices fell for a second day in early Asian trade on Thursday as concerns over geopolitical tensions eased and rising numbers of COVID-19 cases in China added to demand worries in the world's largest crude importer. Brent crude futures dropped by 62 cents, or 0.7%, to $92.24 a barrel by 0110 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 65 cents, or 0.8%, to $84.94 a barrel.

Dollar steadies
The dollar caught its footing on Thursday as strong U.S. retail data cast doubt on market bets that inflation is in retreat and U.S. interest rates need not rise too much further. The euro was also firm after NATO said a missile that crashed inside Poland was probably a stray fired by Ukraine's air defences, and not a Russian strike.

FII/DII action
Foreign portfolio investors (FPIs) net sold shares worth Rs 386 crore on Wednesday, provisional data showed. DIIs were, however, net buyers of shares to the tune of Rs 1,437 crore.

Stocks in F&O ban today
Balrampur Chini Mills, Bharat Heavy Electricals, Delta Corp, Gujarat Narmada Fertilizers, Indiabulls Housing Finance, and Sun TV Network. 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.


Rupee: The Indian unit ended lower against the dollar on Wednesday after gains in the previous session. It settled at 81.2975 a dollar after touching a low of 81.5675 intraday.


MACRO NEWS

• US retail sales rose more than expected 1.3% in October after being largely unchanged in September
• Industrial production in the US declined 0.1% in October, as headwinds such as high interest rates and supply-chain bottlenecks weakened demand for goods.

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