Domestic stock indexes are expected to open on a positive note on Thursday, following strong cues from global markets. The US stock was higher overnight, while most Asian markets were up early on Thursday thanks to a drop in dollar that supported sentiment. On Wednesday, the Nifty faced resistance near a rising trendline and key daily moving averages. Gaurav Ratnaparkhi, of Sharekhan said the bulls managed to defend the key psychological level of 18,000. If Nifty breaks 18,000 on the downside, it can take a leap towards 18,250 -- 18300. He said that a breach of 18,000 will allow the Nifty to slide further towards the lower end of the short term consolidation at 17,800.
Nifty futures on the Singapore Exchange quoted 49 points, or 0.27 per cent, higher at 18,160, hinting a firm start for the domestic market on Thursday.
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 rose by 0.37 per cent. China's Shanghai was added by 0.71 per cent.
After opening the year down more than 9 per cent, the worst yearly start in over three decades, oil prices rebounded on Thursday after investors took advantage of the decline to buy futures on the assumption that long-term fuel demand will remain steady. The price of crude futures rose 59 cents to $78.43 a barrel at 0136 GMT, while the US West Texas Intermediate crude futures rose 69 cents to $73.53 a barrel.
The dollar struggled to advance on Thursday morning, even as Federal Reserve policymakers reiterated their commitment to fight inflation a month ago, 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. The pound rose 0.76 per cent to $1.2062, while the euro rose 0.19 per cent higher to $1.0624 at the end of the day. The Japanese yen climbed by 0.5 per cent to 131.97 per dollar.
National Stock Exchange NSE hasn't added any stocks under the 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 the security. The prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
FPIs were net sellers of domestic stocks to the tune of 2,620, according to the provisional data available with the NSE. On Monday, there were 89 crore. Domestic institutional investors DIIs were buyers of equity to the tune of 773.58 crore.
The rupee rebounded from its all-time low and settled on Wednesday 23 paise higher at 82.77 against the US dollar, supported by easing crude oil prices. The weakness of the dollar in the overseas market, strong Asian peers and suspected intervention from the Reserve Bank of India RBI has helped the currency, according to traders, according to PTI.