Domestic stock indices are likely to open higher on Thursday, ahead of the quarterly earnings of technology giants Tata Consultancy Services Ltd and Infosys Ltd. Asian stocks were trading mostly higher in the early trade, tracking gains in the US stocks overnight. Traders will be keenly awaiting US inflation numbers due later in the day. Here's what all you know to know before the opening bell: Nifty outlook Nifty took the support near 20-day SMA and recovered sharply after intraday correction, said Shrikant Chouhan, Head-Equity Research, Kotak Securities. "We are of the view that, 20-day SMA or 21,500 could act as a sacrosanct support level for traders, above which the chances of hitting 21,720-21,760 would turn bright,” he said.
“Below 21,500, the selling pressure is likely to accelerate. Below which, the market could slip till 214,00-21,355,” he added. Nifty Bank outlook MACD indicators maintain a neutral stance on Nifty Bank, signalling a potential range-bound movement, said Om Mehra, Technical Analyst, SAMCO Securities. "A decisive directional shift is anticipated only upon breaking the 47,000-48,150 range. The volume profile indicates that 47,000 levels hold strong support for the next couple of trading sessions," he said. GIFT Nifty signals a positive start Nifty futures on the NSE International Exchange traded 19 points, or 0.09 per cent, lower at 21,733.50, hinting at a positive start for the domestic market on Thursday. Asian shares open higher in early trade Asian equities opened higher on Thursday as investors looked ahead to a US consumer price report for possible clues on when the Federal Reserve could begin cutting interest rates, while Japanese stocks continue to ride the crest of an increasingly bullish wave. Japan's Nikkei surged 1.94 per cent; China's Shanghai added 0.01 per cent; Hong Kong's Hang Seng surged 1.55 per cent; South Korea's KOSPI gained 0.37 per cent. Oil prices ticked up amid Middle East tensions Oil prices ticked higher in Asian trading as markets measured rising tensions in the Middle East against a surprise build in US crude stockpiles that pushed oil benchmarks down about 80 cents in the previous session. US West Texas Intermediate crude futures gained 20 cents, or 0.28 per cent, to reach $71.57 a barrel by 0202 GMT. Benchmark Brent crude oil futures rose 21 cents, or 0.27 per cent, to $77.01 a barrel. Dollar takes breather ahead of US CPI data The yen was squeezed on Thursday, weighed by sluggish Japanese wages, while the dollar was becalmed as traders waited on US inflation data to see whether bets on rate cuts were justified. The dollar index hovered at 102.3 on Thursday. The yen was under gentle pressure at 145.55 per dollar. Sterling bought $1.2750, while the euro bought $1.0974. Wall Street shares settle mixed The S&P 500 and Dow lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields as investors assessed the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week. The Dow Jones Industrial Average fell 157.85 points, or 0.42 per cent, to 37,525.16. The S&P 500 lost 7.04 points, or 0.15 per cent, at 4,756.50 and the Nasdaq Composite gained 13.94 points, or 0.09 per cent, at 14,857.71. Q3 results today Tata Consultancy Services, Infosys, HDFC Asset Management Company, GTPL Hathway, 5Paisa Capital, Rajoo Engineers, AGI Infra and Plastiblends India are among the companies that will announce their results for the December 2023 quarter today. Stocks in F&O ban As many as 13 stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Thursday, January 11. The new addition namely- Indus Towers, PVR Inox, Zee Entertainment Enterprises (ZEEL) - will join the existing retentions including Balrampur Chini Mills, Bandhan Bank, Piramal Enterprises (PEL), Delta Corp, Indian Energy Exchange (IEX), Chambal Fertilisers & Chemicals, Escorts Kubota, India Cements, National Aluminium Company (Nalco) and Steel Authority of India (SAIL). 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 1,721 crore Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 1,721.35 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 2,080.01 crore. Rupee rises 10 paise against dollar Rising for the sixth straight session, the rupee jumped 10 paise to 83.03 against the US dollar on Wednesday, tracking a firm trend in equity markets and easing crude prices. A weak greenback overseas and expectations of favourable global and domestic macroeconomic data also boosted the domestic currency, forex traders said.
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Note: With inputs from PTI, Reuters and other agencies