GIFT Nifty up 137 points: Asian markets, crude oil prices, dollar movement, & more

Domestic stock indices are likely to see a gap-up start to Monday’s trade after the landslide victory for BJP in three state elections. The elections were seen as the semi-finals to the general elections 2024. Asian stocks were up while the dollar eased a bit, supporting the domestic sentiment. Here's what you should know before the Opening Bell:

Nifty outlook
Nifty formed a reasonable positive candle on the daily chart with a gap up opening. Nifty is placed at the all-time high but there is no indication of unfolding  of any reversal pattern. Nifty formed a long bull candle on the weekly chart, which signaled a sharp upside breakout in the market, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

"The short-term trend of Nifty continues to be positive and one may expect further upside in the coming week. The next upside levels to be watched are around 20,510. Immediate support is at 20140," he said.

Nifty Bank outlook
Ashwin Ramani of SAMCO Securities said that the level of 44,500, which acted as a strong resistance earlier, saw call writers exiting and strong put writing, leading to a strong up move in Nifty Bank. "Both the call & put writers, however, battled out at the 45,000 strike fiercely. The option activity at 45,000 level will provide cues about future direction of Bank Nifty" he said.

GIFT Nifty signals a positive start
Nifty futures on the NSE International Exchange traded 137 points, or 0.67 per cent, higher at 20,630.50, hinting at a positive start for the domestic market on Monday.

Asian shares mostly up
Asian shares started firmer on Monday while gold hit another record high in a busy week for economic data that will test market wagers for early and aggressive rate cuts from major central banks next year. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.30 per cent. Japan's Nikkei dropped 0.73 per cent; Australia's ASX 200 surged 0.81 per cent; New Zealand's DJ added 0.08 per cent; China's Shanghai added 0.01 per cent; Hong Kong's Hang Seng declined 0.30 per cent; South Korea's Kospi jumped 0.56 per cent.

Oil prices edge higher
Oil futures rose on Monday as geopolitical tension in the Middle East returned to focus, spurring concerns about supply from the region, but uncertainty over OPEC+ voluntary output cuts and global fuel demand growth clouded the sector's outlook. Brent crude futures climbed 28 cents, or 0.4 per cent, to $79.16 a barrel by 0018 GMT, while US West Texas Intermediate crude futures were at $74.36 a barrel, up 29 cents, or 0.4 per cent.

Dollar eases as traders weigh rate cut
The dollar started the week on a shaky footing on Monday as markets took stock of cautious remarks from Federal Reserve Chair Jerome Powell as they waited on a key employment report that could influence the outlook for US interest rates. The US dollar index was last hovering around 103.28. The Euro was mostly flat on Monday at $1.0874, while Sterling was last trading around $1.2682. Against the yen, the dollar was fetching 146.58.

Dow rallies to year's highest close
US stocks rebounded in November following three straight months of declines on better-than-expected earnings and as evidence of easing inflation boosted bets that the Fed was at the end of its monetary tightening campaign. The benchmark S&P 500 index (.SPX) closed at its highest level of the year on Friday amid growing optimism. The Dow Jones Industrial Average rose 294.61 points, or 0.82 per cent, to 36,245.5, the S&P 500 gained 26.83 points, or 0.59 per cent, to 4,594.63 and the Nasdaq Composite added 78.81 points, or 0.55 per cent, to 14,305.03.

Investors to cheer election results
Markets will react to the state assembly elections of four states, of which three- Chhattisgarh, Madhya Pradesh and Rajasthan were sweeped by BJP and Congress was restricted to Telangana only. BJPs win in the northern states is likely to be seen as a big positive for the markets in the upcoming general elections in 2024. However, the Election Commission changed the counting date for Mizoram assembly polls to December 4.

Stocks in F&O ban
Even in the beginning of the series, only one stock- Delta Corp- has been put under the F&O segment ban by the National Stock Exchange (NSE) for Monday, December 2. 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 1,590 crore
Provisional data available with NSE suggest that FPIs were net buyers of domestic stocks to the tune of 1,589.61 crore on Friday. On the other hand, domestic institutional investors (DIIs) turned net sellers of Indian equities to the tune of Rs 1,448.02 crore.

Rupee rises 4 paise against dollar
The rupee appreciated 4 paise to settle at 83.33 against the US dollar on Friday, following positive cues from equity markets and strong domestic macroeconomic data. Forex analysts said easing crude oil prices in the international markets also favoured the local currency.

Note: With inputs from PTI, Reuters and other agencies

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