After a day's hiatus, domestic equity indices are likely to open higher Friday amid the firm global cues. US stocks settled higher on Thursday, whereas Asian peers rose at open. Back home, Adani Enterprises' Rs 20,000 crore FPO and Q3 earnings will continue to remain at focus. Here's what you should know before the opening bell:
Nifty outlook
On the daily timeframe, Nifty remained below the 50-day exponential moving average, which confirms the bearish trend, said Rupak De, Senior Technical Analyst at LKP Securities
"On the lower end, however, the correction was limited to the upper band of the falling wedge pattern on the daily chart. The sentiment looks very weak, with the RSI in a bearish crossover. However, a further correction may occur if the index falls below 17,840. On the higher end, resistance is placed at 18000," he added.
SGX Nifty signals a strong start
Nifty futures on the Singapore Exchange quoted 74 points, or 0.41 per cent, higher at 18,027.50, hinting at a higher start for domestic market on Friday.
Asian shares rise in early trade
Asian stocks rose on Friday and were poised for their fifth straight week of gains after a set of data highlighted a resilient US economy, lifting investor sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.34 per cent. Japan's Nikkei added 0.08 per cent; Australia's ASX 200 gained 0.43 per cent; and New Zealand's DJ was up 0.28 per cent; Hong Kong's Hang Seng advanced 0.39 per cent; and Korea’s Kospi index rallied 0.80 per cent.
Oil prices inched up
Oil prices edged marginally higher on Friday, extending for a second session on strong US economic data and strengthening hope that the reopening of the Chinese economy would boost demand. Brent futures gained 30 cents, or 0.3 per cent, to $87.66 a barrel. US crude futures rose 21 cents to $81.22 per barrel, a 0.3 per cent gain.
US dollar edges lower
The US dollar dropped against the yen on Friday as traders bet a hawkish pivot from the Bank of Japan was still in the offing. The dollar index edged 0.04 per cent lower to 101.70. Euro was 0.07 per cent stronger at $1.08975 on the day, whereas Sterling was flat on Friday at $1.2411. The US currency dropped 0.43 per cent to 129.65 yen in early trading.
US stocks settled higher
Wall Street ended a choppy session higher on Thursday, as investors grappled with an onslaught of economic data and a string of mixed corporate earnings, all while eyeing the clock as it ticks down toward next week's Federal Reserve monetary policy meeting. Dow Jones Industrial Average index rose 205.57 points, or 0.61 per cent, to 33,949.41; S&P500 gained 44.21 points, or 1.10 per cent, to 4,060.43. Nasdaq Composite added 199.06 points, or 1.76 per cent, to 11,512.41.
Q3 earnings today
Bajaj Finance, Vedanta, AIA Engineering, Aditya Birla Sun Life AMC, Shree Renuka Sugars, Godfrey Phillips India, Sterlite Technologies, Anupam Rasayan India, CMS Info Systems, Glenmark Life Sciences, Aarti Drugs, Fineotex Chemicals and Paushak are among the companies that will announce their results for the December 2022 quarter.
Stocks in F&O ban
No stocks have been put under F&O ban by National Stock Exchange (NSE) for Friday, January 27. Derivative contracts in a security are banned when it crosses 95 per cent of the market-wide position limit (MWPL). No new positions can be created in the derivative contracts of said security. This prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
FPIs sell shares worth Rs 2,394 crore
Provisional data available with NSE suggests FPIs turned net sellers of domestic stocks to the tune of Rs 2,393.94 crore on Wednesday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 1,378.49 crore.
Rupee falls 2 paise against dollar
The rupee slipped 2 paise to close at 81.65 against the US dollar on Wednesday amid a firm trend in crude prices and unabated foreign fund outflows. Heavy selling pressure in the domestic equity market also hit the local currency, forex traders said.
Adani Enterprises FPO kicks
The mega follow-on public offering (FPO) of Adani Enterprises kicks off on Friday. The flagship company of the Adani Group is aiming to raise Rs 20,000 from via FPO route by selling its shares in the range of Rs 3,112-3,276. The issue can be subscribed till January 31, 2023 in lots of 4 equity shares each.
Note: With inputs from PTI, Reuters and other agencies
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