GIFT Nifty down 8 points: Asian markets, crude oil prices, dollar movement, & more

Domestic benchmark indices are likely to open on a flat note on Friday ahead of RBI's monetary policy decision due later in the day. However, global cues remained positive for the day as US stocks opened higher and US stocks settled with decent gains. Back home, RBIs monetary policy may induce some volatility in the equity markets for the day. Here's what you should know before the opening bell:

Nifty outlook
Laxmikant Shukla - Technical Research Analyst, YES Securities said that Nifty formed a  doji candle near the psychological levels of 21,000-21,100 zone implies a possible enervation in recent strength. "However, sustainability above 20,700-20,500 zones is critical to maintain the positive tone," he said.

Nifty Bank outlook
Nifty Bank also witnessed a consolidation however it managed to close marginally in the green, said Jatin Gedia, Technical Research Analyst at Sharekhan. "We expect the Nifty Bank to also consolidate over the next few trading sessions. The range of consolidation is likely to be 46,400-47,300. The trend is still positive and dips towards the support zone of 46,600-46,500 should be used as an opportunity to go long," he said.

GIFT Nifty signals a flat start
Nifty futures on the NSE International Exchange traded 7.5 points, or 0.04 per cent, lower at 21,073.50, hinting at a flattish start for the domestic market on Friday.

Asian stocks rally in early trade
Asian shares rise at open on Friday as bond yields, interest rate expectations, oil prices and inflationary pressures around the world are falling, and the conviction behind this broad-based move appears to be strengthening. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.58 per cent. Japan's Nikkei tanked 1.84 per cent; Australia's ASX 200 gained 0.14 per cent; New Zealand's DJ added 0.08 per cent; China's Shanghai rose 0.36 per cent; Hong Kong's Hang Seng shed 0.39 per cent; South Korea's Kospi jumped 0.79 per cent.

Oil prices head for weekly decline
Oil prices rose in early trade on Friday but were on track to fall 6 per cent for the week, hovering near six-month lows, with investors fretting about weak energy demand in Asia combined with high US crude production. Brent crude futures rose 68 cents, or 0.9 per cent, to $74.73 a barrel by 0136 GMT, while US West Texas Intermediate crude futures gained 64 cents, also up 0.9 per cent, to $69.98 a barrel.

Dollar stays defensive, Yen rallies
The yen extended its towering rally on Friday and marched toward its best week against the dollar in nearly five months, as traders ramped up expectations that the end of Japan's ultra-low interest rates was closing in. The broad strength from the yen kept a lid on the dollar, which stayed on the defensive ahead of the closely-watched US nonfarm payrolls report. The US dollar index slipped 0.05 per cent to 103.63. Against the dollar, the yen was last steady at 144.30. The euro steadied at $1.0792, while sterling last bought $1.2589. The offshore yuan edged 0.1 per cent higher to 7.1560 per dollar.

US stocks settled higher
The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 has steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes. The Nasdaq Composite (.IXIC) jumped 1.37 per cent to 14,339.99 points, while Dow Jones Industrial Average rose 0.18 per cent to 36,117.57 points. The S&P 500 climbed 0.80 per cent to end the session at 4,585.59 points.

RBI monetary policy due later today
The Reserve Bank of India's Monetary Policy Committee (MPC) will announce its decision on the key interest rates today, that is on Friday, December 8 in what will be the last review before the budget is presented for the financial year 2024-25. Economists expect the MPC to maintain the status quo in the upcoming decision.

Stocks in F&O ban
Seven stocks have been put under the F&O segment ban by the National Stock Exchange (NSE) for Friday, December 8. The new addition namely- Balrampur Chini Mills and National Aluminium Company (Nalco) - will join the existing retentions including Indiabulls Housing Finance, Steel Authority of India (SAIL), 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 1,564 crore
Provisional data available with NSE suggest that FPIs were net sellers of domestic stocks to the tune of 1,564.03 crore on Thursday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 9.66 crore.

Rupee falls 4 paisa against US dollar
The rupee depreciated 4 paise to close at 83.36 against the US dollar on Thursday, tracking elevated American currency in the overseas market and a muted trend in domestic equities. Forex traders said the rupee traded in a narrow range as the support from easing crude oil prices was negated by strong dollar demand from importers.


Note: With inputs from PTI, Reuters and other agencies

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