Sensex, Nifty on weaker turf amid jitters on Wall Street - key triggers to watch out on Wednesday

Indian frontline indices S&P BSE Sensex and NSE Nifty50 will resume trading on Wednesday amid a host of local and global factors. Zee Business has collated key factors that are likey to impact movement tomorrow.  

Tuesday Market Movement

Indian frontline indices S&P BSE Sensex and NSE Nifty50 ended negative for second consecutive day on Tuesday. Both Sensex and Nifty50 traded in a range with former moving within a 400-points range while latter in 120-points range. The 30-share Sensex ended at 60,672.72, down by 18.82 points or 0.03 per cent while the broader market Nifty50 settled at 17,826.70, down by 17.90 points or 0.1 per cent. Banking gauge Bank finished at Nifty 40,673.60, 28.10 points 0.07 per cent.

In the 50-share Nifty50, 20 stocks gained while 30 declined. The top gainers were NTPC, Britannia Industies, Tata Steel, Reliance Industries and Power Grid while the top losers were Adani Enterprises, Apollo Hospitals, Coal India, Bajaj Auto and Tata Motors. 

Key tiggers for Wednesday, 22 February 2023

1) US Markets: Domestic markets will take cues from US market closing of Tueday and Dow Futures on Wednesday. They will also follow how Singapore-listed SGX Nifty futures, an early indicator of movement in Nifty50, trade tomorrow. At the time of filing this story, all three benchmark indices on Wall Street were trading in deep red. Dow 30 was trading at 33,286, down by 540.66 points or 1.60 per cent while S&P 500 was down 66.92 points or 1.64 per cent at 4,012.17. Nasdaq Composite was trading at 11,547.20, down by 240.11 points or 2.04 per cent.

Dow Futures were trading at 33,292.30, down by 534.40 points or 1.58 per cent while SGX Nifty was trading at 17,810, down by 35.5 points or 0.20 per cent around this time. 

 Source: Comex

2) Rupee Vs Dollar: The rupee depreciated 6 paise to close at 82.79 against the US dollar on Tuesday as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments. Traders said the inflow of foreign funds in the domestic equities market, however, supported the Indian currency. At the interbank foreign exchange market, the rupee opened at 82.76 against the greenback and finally settled for the day at 82.79, registering a fall of 6 paise over its previous close of 82.73. During the session, the domestic unit witnessed an intra-day high of 82.73 and a low of 82.83 against the American dollar. "Rupee continued to trade in a narrow range and volatility remained low. Preliminary manufacturing and services PMI numbers released from the EZ and the UK came in better-than-estimates. Euro and pound gained after the release of robust data," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. According to Jateen Trivedi, VP Research Analyst at LKP Securities, the rupee traded weak near 82.80 against the dollar index which was volatile between 103.80-104.10. Rupee's weakness is borrowed due to anticipated hawkish US Fed's minutes update. But RBI is supporting the rupee and is keeping the fall and rise limited between 82.65-83.00, Trivedi said. Anindya Banerjee, VP - Currency Derivatives & Interest Rate Derivatives at Kotak Securities, said that exporter sales and some FPI demand for the US dollar kept prices within a narrow range. On Wednesday, US FOMC (Federal Open Market Committee) minutes can create volatility. "Over the near-term we expect a range of 82.50 and 83.00 on spot," Banerjee added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent higher at 103.87.

3) Stocks in Ban: Securities in Ban on Wednesday is Vodafone Idea.

4) FII / DII Action: Foreign institutional investors were net buyers of Indian equities at Rs 525.8 crore while domestic institutional investors were net sellers at Rs 235.23 crore. 

5) Crude Oil: Global oil benchmark Brent crude futures declined 1.69 per cent to USD 82.65 per barrel. Prices of key commodities will hinge on how USD moves against major currencies tomorrow. 

 Source: MCX

6) Anil Singhvi Strategy on Nifty, Bank Nifty: Nifty will find support at 17,725-17,775 while resistance at 17,925-17,975. As for Bank Nifty, support is seen at 40,500 while resistance at 41,000. The markets lack important triggers that could propel it forwards, he said.    

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7) Monthly Expiry: Investors must keep an eye on how futures & options market trade on Wednesday ahead of monthly expiry on Thursday. Singhvi said that it will be intereing to see how retail traders trade tomorrow and if they will look to reduce positions ahaed of the expiry day.

Also Read: BIG ALERT: Cyber-criminals misusing Anil Singhvi's name to scam WhatsApp users with fraudulent messages - Know modus operandi

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)