The global markets are set to open on a positive note on Thursday, with domestic stock indices in India expected to rise ahead of the monthly expiry of January series F&O contracts. This momentum is largely influenced by Asian stocks, which opened higher following a firm closing for US stocks on Friday. In addition, the dollar is maintaining a six-week high.
In terms of the Nifty outlook, the index has struggled to surpass the 21,500-mark, but experts suggest that it is likely to remain sideways within the range of 21,300 and 21,500. However, a decisive breakthrough above 21,500 could potentially push the index towards 21,700-22,000 in the short term.
The Nifty Bank, on the other hand, witnessed a sharp pullback from intraday lows, indicating a potential relief rally. Technical analysts believe that there is a positive divergence and a positive crossover, suggesting a loss of downside momentum. The support zone for the Nifty Bank is at 44,600-44,500.
In Asian markets, major stock markets opened higher as investors awaited key economic data and the US Fed’s interest rate decision scheduled for this week. While the MSCI’s broadest index of Asia-Pacific shares outside Japan dipped slightly, the Nikkei, ASX 200, Hang Seng, and KOSPI all made gains.
Meanwhile, oil prices rose 1% due to fuel supply concerns after a missile strike on a fuel tanker in the Red Sea and expected declines in Russian refined products exports. Brent crude futures climbed to $84.38 a barrel, while US West Texas Intermediate crude rose to $78.79 a barrel.
The dollar remains steady as investors evaluate US economic data ahead of the Federal Reserve policy meeting. Geopolitical tensions in the Middle East also contribute to risk sentiment. The euro and sterling experienced slight declines, while the Japanese yen strengthened slightly against the dollar.
In summary, the global markets, including domestic stock indices in India, are likely to open on a positive note. Asian markets have started the day higher while oil prices have risen due to supply concerns. Investors are closely monitoring economic data and the upcoming Fed meeting for further market direction.
FAQ on Global Markets: January Series F&O Contracts and Nifty Outlook
1. What are the expectations for the global markets on Thursday?
Global markets, including domestic stock indices in India, are set to open on a positive note.
2. What is influencing this positive momentum?
The momentum is largely influenced by Asian stocks, which opened higher, and the US stocks’ firm closing on Friday. Additionally, the dollar is maintaining a six-week high.
3. What is the outlook for the Nifty index?
The Nifty index has struggled to surpass the 21,500-mark. However, experts suggest that it is likely to remain sideways within the range of 21,300 and 21,500. A decisive breakthrough above 21,500 could potentially push the index towards 21,700-22,000 in the short term.
4. What is the outlook for the Nifty Bank?
The Nifty Bank witnessed a sharp pullback from intraday lows, indicating a potential relief rally. Technical analysts believe there is a positive divergence and positive crossover, suggesting a loss of downside momentum. The support zone for the Nifty Bank is at 44,600-44,500.
5. How are Asian markets performing?
Major stock markets in Asia opened higher. Although MSCI’s broadest index of Asia-Pacific shares outside Japan dipped slightly, the Nikkei, ASX 200, Hang Seng, and KOSPI all made gains.
6. Why did oil prices rise?
Oil prices rose by 1% due to fuel supply concerns after a missile strike on a fuel tanker in the Red Sea and expected declines in Russian refined products exports. Brent crude futures climbed to $84.38 a barrel, while US West Texas Intermediate crude rose to $78.79 a barrel.
7. What is the current status of the dollar?
The dollar remains steady as investors evaluate US economic data ahead of the Federal Reserve policy meeting. Geopolitical tensions in the Middle East also contribute to risk sentiment. The euro and sterling experienced slight declines, while the Japanese yen strengthened slightly against the dollar.
Definitions:
– F&O Contracts: Futures and Options contracts, a type of derivative instrument traded in the financial markets.
– Index: A statistical measure of the changes in a portfolio of stocks representing a portion of the overall market.
– Technical Analysts: Professionals who study historical market data and use it to predict future price movements.
– Relief Rally: A rally in prices following a period of decline or consolidation.
– Geopolitical Tensions: Conflicts and tensions arising from political relationships between different countries or regions.