Domestic stock indices may open higher on Thursday, but they will be dictated by global cues and interim Budget announcements later in the day. US Fed kept the interest rates unchanged overnight but dashed hopes of rate cut in March, dragging the Wall Street. Here's what all you know to know before the Opening Bell: Nifty outlook Nifty traded in the 21,100-21,800 range in the past nine trading sessions. The momentum setup is providing a divergent signal, as both daily and hourly momentum indicators have a negative crossover but prices are moving higher, said Jatin Gedia, Technical Research Analyst at Sharekhan. "Under such a situation when the price and momentum indicators are not in sync, it generally leads to a range bound move. Considering the event of interim Budget, volatility is likely to continue. Key support levels to watch are 21,550-21,500 while the immediate hurdle zone is placed at 21,850-21,900," he said. Nifty Bank outlook Nifty Bank formed a strong bullish daily candle on the daily chart. The RSI indicator is positioned below the average line, said Om Mehra, Technical Analyst at SAMCO Securities. “The 20 DMA also plots immediate resistance. Market participants anticipate a decisive directional shift only if the 46,600 range is taken out. The volume profile indicates immediate support at 45,000 levels in Nifty Bank," he said. GIFT Nifty signals a positive start Nifty futures on the NSE International Exchange traded 36 points, or 0.17 per cent, higher at 21,830.50, hinting at a positive start for the domestic market on Thursday. Asian shares trade lower in early trade Asian shares faltered on Thursday after Wall Street took a late spill, while investors stuck to bets for sizable cuts in US interest rates this year even if the kick off might now be a little later than first hoped. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.26 per cent. Japan's Nikkei dropped 0.77 per cent; China's Shanghai tumbled 1.12 per cent; Hong Kong's Hang Seng gained 0.38 per cent; South Korea's KOSPI rallied 0.84 per cent. Oil edges up on the US Fed signals Global oil prices climbed in early trade on Thursday, supported by signals from the US Federal Reserve on a possible start to rate cuts and as China unveiled new support measures for its embattled property market. Brent crude futures rose 46 cents, or 0.6 per cent, to $81.03 a barrel and US West Texas Intermediate crude futures gained 47 cents, or 0.6 per cent, to $76.33 at 0140 GMT, after falling by more than $2 a barrel in the previous session. Dollar hovers near 7-week high The dollar hovered close to the highest level in seven weeks against the euro on Thursday, after Federal Reserve Chair Jerome Powell pushed back on the idea of a first US interest rate cut as soon as March. The US dollar index slipped 0.07 per cent to 103.54 in early Asian trading. The euro eased 0.06 per cent to $1.0811, Against Japan's currency, the dollar drifted 0.06 per cent lower to 146.81 yen. Fed stays status quo on interest rates The Federal Reserve left interest rates unchanged on Wednesday but took a major step towards lowering them in coming months in a policy statement that tempered inflation concerns with other risks to the economy and dropped a longstanding reference to possible further hikes in borrowing costs. The US central bank also reiterated that despite progress, inflation risks remain and dashed hopes for an interest rate cut as soon as March. Wall Street shares tumble sharply lower US stocks tumbled on the last trading day in January after the Federal Reserve held interest rates steady while dashing hopes for interest rate cut as soon as March. The three major US stock indexes were already weighed down by weakness in tech. The Dow Jones Industrial Average fell 317.01 points, or 0.82 per cent, to 38,150.30; the S&P 500 lost 79.32 points, or 1.61 per cent, to 4,845.65 and the Nasdaq Composite lost 345.88 points, or 2.23 per cent, to 15,164.01. Interim Budget 2024 today The finance Minister Nirmal Sitharaman will table the interim budget on Thursday, February 1. This will be the last budget from the Modi Government 2.0, ahead of the general elections. The domestic market will be focused on the interim Budget particularly on any proposals regarding taxation of investments relating to the capital market. The fiscal deficit and its glide path also is important since growth with stability is hugely important from the market perspective, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. January GST collection at Rs 1.72 lakh crore The government's Goods and Services Tax (GST) collections rose to Rs 1.72 lakh crore in January, according to provisional data released by the Ministry of Finance on Wednesday, January 31. The January GST collection is the second-highest ever and is 4.4 per cent higher than the Rs 1.65 lakh crore collected in December 2023. Q3 results today Adani Enterprises, Titan Company, Adani Ports and Special Economic Zone, Tube Investment of India, Indian Hotels Company, Abbott India, Mphasis, Aditya Birla Capital, Bayer Cropsciences, Five State Business Finance, Sonata Software, Dr Lal Pathlabs, Sumitomo Chemical India, Castrol India, Bata India, RITES and Jupiter Wagons are among the companies that will announce their results for the December 2023 quarter today. Stocks in F&O ban Two stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Thursday, February 1. The new entrant Steel Authority of India (SAIL) will join the existing retention Zee Entertainment Enterprises (ZEEL) in the list. Companies where derivative contracts cross 95 per cent of the market-wide position limit are put under ban in the F&O segment. FPIs buy shares worth Rs 1,661 crore Provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 1,660.72 crore on Wednesday. On the other hand, domestic institutional investors (DIIs) turned net buyers of Indian equities to the tune of Rs 2,542.93 crore. Rupee rises 6 paise against dollar The rupee appreciated 6 paise to 83.04 against the US dollar on Wednesday, supported by a firm trend in domestic equities. Market participants remained cautious ahead of the interim Budget, scheduled to be presented on February 1, traders said, adding that a strengthening American currency in the overseas market also capped the sharp gain in the local unit. Note: With inputs from PTI, Reuters and other agencies
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