Domestic benchmark indices are likely to open lower on Thursday amid negative global cues. Asian stocks tanked in early trade, tracking an overnight fall in US stocks. Back home, the expiry of weekly derivatives contracts will heighten volatility, head of the RBI's monetary policy outcome due on Friday. Here's what you should know before the Opening Bell: Nifty outlook Rupak De of LKP Securities said Nifty's Hanging Man on the daily chart suggested a possibility of bearish reversal. The bearish formation around the crucial resistance of 21,000 amplifies the bearish sentiment, he said. "The support lies at 20,850, below which the market may witness a healthy correction in the short term. On the other hand, a move above 21,000 might trigger a resumption of the bullish trend," he said. Nifty Bank outlook Ashwin Ramani of SAMCO Securities said the index formed a Bearish Engulfing candle on the daily chart, a bearish reversal signal. “Heavy call writing was observed at the 47,000-strike and the option activity at this strike will provide cues about Nifty Bank’s future direction," he said. GIFT Nifty signals a negative start Nifty futures on the NSE International Exchange traded 21 points, or 0.10 per cent, lower at 21,039, hinting at a negative start for the domestic market on Thursday. Asian shares fall at open Asian shares slipped with Wall Street on Thursday, while a sharp fall in oil prices to a five-month low promised further reduction in inflationary pressures, boosting global bond markets. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.81 per cent. Japan's Nikkei tanked 1.82 per cent; Australia's ASX 200 dropped 0.34 per cent; New Zealand's DJ declined 0.56 per cent; China's Shanghai fell 0.31 per cent; Hong Kong's Hang Seng plnged 1.68 per cent; South Korea's Kospi shed 0.31 per cent. Oil prices regain ground Oil prices recouped some of their losses in early Asian trading but remained at the lowest levels since June, after falling in the previous session on high US crude output and gasoline inventories. Brent crude futures rose 32 cents, or 0.43 per cent, to $74.62 a barrel. US West Texas Intermediate crude futures rose 33 cents, or 0.48 per cent, to $69.71 a barrel. Dollar steady, euro near three-week low The euro languished near a three week low on Thursday as traders intensified bets that the European Central Bank (ECB) will start cutting rates from March next year, while the dollar was steady ahead of a crucial payrolls data later this week. The dollar has found its footing this month after a 3 per cent drop in November as traders ramp up rate cut bets for other central banks. The dollar index was little changed at 104.12. The euro was up 0.05 per cent at $1.0767. The Japanese yen strengthened 0.16 per cent to 147.07 per dollar. The offshore Chinese yuan eased 0.02 per cent to $7.1717 per dollar. Wall Street shares end lower US stocks on Wednesday, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve could start cutting interest rates early next year. The S&P 500 declined 0.39 per cent to end at 4,549.34 points. The Nasdaq Composite Index fell 0.58 per cent to 14,146.71, while the Dow Jones Industrial Average slid 0.19 per cent to 36,054.43. Stocks in F&O ban list Five stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Thursday, December 7. The new addition namely- Steel Authority of India (SAIL) - will join the existing retentions including Indiabulls Housing Finance, India Cements and Zee Entertainment Enterprises (ZEEL) and Delta Corp. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment. FPIs sell shares worth Rs 80 crore Provisional data available with NSE suggest that FPIs were net sellers of domestic stocks to the tune of 79.88 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 1,372.18 crore.
Rupee rises 5 paisa against dollar The rupee appreciated 5 paise to close at 83.32 against the US dollar on Wednesday, helped by a bullish trend in domestic equities and lower crude oil prices. Forex traders said elevated American currency in the overseas markets and dollar buying by the Reserve Bank of India (RBI) capped sharp gains for the local unit. Note: With inputs from PTI, Reuters and other agencies
Also read: Delta Corp shares in focus as arm gets interim relief on Rs 6,384-crore GST notice demand