Chinese stocks are aiming higher amid the restart of offshore listings. (Pivot Orderbook analysis)

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• Chinese stocks are aiming higher amid the restart of offshore listings.
• The USD Index has turned sideways after dropping to near 103.00 as investors surrendered the risk-aversion theme.
• Oil prices are struggling to extend gains above $78.50 ahead of China’s inflation data.

The pair currently trades last at 27435.85.

The previous day high was 27696.06 while the previous day low was 27401.06. The daily 38.2% Fib levels comes at 27513.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27583.37, expected to provide resistance.

Markets in the Asian domain are demonstrating mixed responses as S&P500 witnessed a sell-off on Wednesday, eased the majority of gains earned in Tuesday’s session. Sell-off in the US equities was tickled by weakness in the technology stocks. Alphabet Inc. was heavily dumped by the market participants after Google ChatGPT Artificial Intelligence (AI) delivered an incorrect answer to an online advertisement.

S&P500 futures have shown some decent gains in the Asian session as investors are digesting concerns about further policy tightening by the Federal Reserve (Fed), portraying a risk-on market mood. The US Dollar Index (DXY) has turned sideways after dropping to near 103.00 as investors surrendered the risk-aversion theme.

At the press time, Japan’s Nikkei225 eased 0.33%, ChinaA50 jumped almost 1%, Hang Seng gained 0.40%, and Nifty50 eased 0.40%.

Chinese stocks are escalating ahead of the release of the Consumer Price Index (CPI) data, which will release on Friday. The annual CPI is seen higher at 2.1% while producers are expected to display deflation in the prices of goods and services settled at factory gates.

The expectations of more stimulus by the Chinese administration and the People’s Bank of China (PBOC) to spurt economic growth after dismantling pandemic controls, will escalate inflation ahead, similar to inflationary pressures in the western countries which are battling against stubborn inflation after the pandemic period.

Chinese state media on Thursday cautioned against risks in chasing local ChatGPT-concept stocks, while domestic artificial intelligence (AI) companies urged investors to be rational after their soaring share prices caught regulators’ attention, as reported by Reuters.

A revival of offshore listing of Chinese companies as Hesai Technology is going public in the United States will improve the risk appetite of Chinese investors.

Indian stocks are facing pressure after a two-day run-up as the Reserve Bank of India (RBI) has not trimmed inflation projections below 5% in any quarter of CY2023. This has opened doors for further hikes in the repo rate ahead.

On the oil front, oil prices are showing a loss in the upside momentum after reaching to $78.50. The oil price is likely to display a power-pack action after China’s inflation data. A decline in the inflation figures could call for more rate cuts by the PBoC ahead.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27435.85 at the time of writing. Pair opened at 27435.85 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 27079.11, 50 SMA 26941.93, 100 SMA @ 27164.72 and 200 SMA @ 27247.53.

The previous day high was 27696.06 while the previous day low was 27401.06. The daily 38.2% Fib levels comes at 27513.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 27583.37, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27325.92, 27215.99, 27030.92
• Pivot resistance is noted at 27620.92, 27805.99, 27915.92

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