SGX Nifty up 49 points: Asian markets, oil prices, dollar movement, FPI flow trend & more

Domestic stock indices are likely to open on a positive note on Thursday, tracking strong cues from global markets. US stock settled higher overnight while most Asian markets were up in early Thursday trade, thanks to a drop in dollar that supported sentiment. Here's what you should know before the Opening Bell:

Nifty outlook

Nifty faced on Wednesday faced resistance near a rising trendline and key daily moving averages. The bulls however managed to defend the key psychological level of 18,000 level, said Gaurav Ratnaparkhi of Sharekhan. "Unless Nifty breaks 18,000 on the downside, it can once again take a leap towards 18,250-18300. On the other hand, breach of 18,000 will allow the Nifty to slide further towards the lower end of the short term consolidation at 17,800," he said.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange quoted 49 points, or 0.27 per cent higher at 18,160, hinting at a firm start for the domestic market on Thursday.

Asian shares gain in early trade

Asia markets traded mostly higher in Thursday’s trade, tracking overnight gains on Wall Street. Japan's Nikkei gained 0.44 per cent, Hong Kong's Hang Seng jumped 1.48 per cent, New Zealand's key index was up 0.47 per cent. Seoul's Kospi advanced 0.37 per cent. China's Shanghai was added 0.71 per cent.

Oil price recovers after steep fall

Oil prices rebounded on Thursday after opening the year down more than 9 per cent, the worst yearly start in over three decades, as investors took advantage of the decline to buy futures on expectations long-term fuel demand will remain steady. Brent crude futures gained 59 cents to $78.43 a barrel at 0136 GMT, while US West Texas Intermediate crude futures rose 69 cents to $73.53 a barrel.

Hawkish Fed rhetoric fails to lift dollar

The dollar struggled to advance on Thursday morning, even as Federal Reserve policymakers reiterated their commitment last month to fighting inflation, while the Aussie rallied after China eased its restrictions on imports of Australian coal. The US dollar index fell 0.14 per cent to 104.06. Sterling was last steady at $1.2062, after rising 0.76 per cent, while the euro edged 0.19 per cent higher to $1.0624. The Japanese yen climbed 0.5 per cent to 131.97 per dollar

Wall Street settled higher

US stocks finished higher on Wednesday but below its session peak after volatile trading following the release of minutes from the Federal Reserve's last meeting, which showed officials laser-focused on controlling inflation even as they agreed to slow their interest rate hiking pace. Dow Jones Industrial Average index added 133.40 points, or 0.40 per cent, to 33,269.77; S&P500 index gained 28.83 points, or 0.75 per cent, at 3,852.97; and the Nasdaq Composite index jumped 71.78 points, or 0.69 per cent, to 10,458.76

Stocks in F&O ban

No stocks have been added by National Stock Exchange (NSE) under F&O ban for Thursday, January 5. 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 2,621 crore

Provisional data available with NSE suggests FPIs were net sellers of domestic stocks to the tune of Rs 2,620.89 crore on Monday. Domestic institutional investors (DIIs) were buyers of equities to the tune of Rs 773.58 crore.

Rupee recovered 23 paise against dollar

The rupee recovered from its all-time low level and settled 23 paise higher at 82.77 against the US dollar on Wednesday, supported by easing crude oil prices. Forex traders said weakness of the greenback in the overseas market, strong Asian peers and suspected intervention by the Reserve Bank of India (RBI) also helped the currency, PTI reported.

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