Summary: The domestic stock indices are expected to open higher on Thursday, driven by positive sentiment surrounding the quarterly earnings reports of Tata Consultancy Services Ltd and Infosys Ltd. Asian stocks also traded higher, following the gains in US stocks, while investors anxiously awaited US inflation numbers.
Nifty Outlook: According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Nifty index has received support near the 20-day SMA (Simple Moving Average) and rebounded strongly after a temporary correction. Chouhan believes that if the Nifty can remain above the critical support level of 21,500, it has a bright chance of reaching 21,720-21,760. However, a drop below 21,500 may lead to increased selling pressure and a potential decline to 21,400-21,355.
Nifty Bank Outlook: Om Mehra, Technical Analyst at SAMCO Securities, suggests that the MACD (Moving Average Convergence Divergence) indicators indicate a neutral stance for the Nifty Bank, indicating possible range-bound movement. Mehra emphasizes that a significant shift in direction will only occur if the index breaks the range between 47,000 and 48,150. The volume profile further supports the strong support at the 47,000 level for the next few trading sessions.
GIFT Nifty Signals Positive Start: Nifty futures on the NSE International Exchange hinted at a positive start as they traded slightly lower at 21,733.50.
Asian Shares Open Higher: Asian equities opened higher on Thursday, with Japan’s Nikkei surging 1.94%, China’s Shanghai adding 0.01%, Hong Kong’s Hang Seng surging 1.55%, and South Korea’s KOSPI gaining 0.37%. Investors are closely watching the US consumer price report for indications of when the Federal Reserve might begin reducing interest rates.
Oil Prices Tick Higher: Oil prices in Asian trading slightly increased due to growing tensions in the Middle East, despite US crude stockpiles unexpectedly rising, which had pushed oil benchmarks down in the previous session. US West Texas Intermediate crude futures rose by 0.28% to $71.57 a barrel, while Brent crude oil futures rose by 0.27% to $77.01 a barrel.
Dollar Takes Breather Ahead of US CPI Data: On Thursday, the yen weakened due to sluggish Japanese wages, while the dollar remained steady as traders awaited US inflation data. The dollar index hovered at 102.3, the yen was at 145.55 per dollar, sterling bought $1.2750, and the euro bought $1.0974.
Wall Street Shares Settle Mixed: The S&P 500 and Dow closed lower on Tuesday, pressured by modest rises in Treasury yields as investors assessed the possibility of Federal Reserve interest rate cuts. The Dow Jones fell 0.42%, the S&P 500 lost 0.15%, and the Nasdaq Composite gained 0.09%.
Q3 Results Today: Companies including Tata Consultancy Services, Infosys, HDFC Asset Management Company, GTPL Hathway, 5Paisa Capital, Rajoo Engineers, AGI Infra, and Plastiblends India will announce their results for the December 2023 quarter on Thursday.
Stocks in F&O Ban: The National Stock Exchange (NSE) has placed 13 stocks under the F&O segment ban for Thursday, including Indus Towers, PVR Inox, and Zee Entertainment Enterprises (ZEEL). These stocks will join the existing list of stocks under retention, such as Balrampur Chini Mills, Bandhan Bank, Piramal Enterprises (PEL), and others. Stocks are banned from the F&O segment when derivative contracts exceed 95% of the market-wide position limit.
FPIs Sell Shares: On Wednesday, foreign portfolio investors (FPIs) sold domestic stocks worth Rs 1,721 crore, according to provisional data from the NSE. Conversely, domestic institutional investors (DIIs) bought Indian equities worth Rs 2,080.01 crore.
Rupee Rises Against Dollar: The Indian rupee continued its upward trend for the sixth consecutive session, gaining 10 paise against the US dollar to reach 83.03. This rise was attributed to a firm trend in equity markets, easing crude prices, a weak US dollar, and positive expectations for global and domestic macroeconomic data.