Stock market today: Key things to know before the opening bell on December 5

Domestic benchmark indices are expected to open positive on Thursday on upbeat global cues. The global markets cheered comments from the optimistic Fed Chairman, who said the downside risk weighs less than earlier.

Global markets

Following the positive commentary, US markets closed to record highs on key benchmark indices. The tech-heavy NASDAQ index outperformed its peers by closing 1.2% higher, while the S&P500 and Dow Jones closed 0.6% higher on Wednesday. The rally in the US markets can largely be attributed to upbeat earnings by Tech companies and positive commentary by Fed Chair Jerome Powell at the DealBook Summit. He also added that central bank officials should remain cautious to bring the interest rates to a neutral level, one that neither hurts economic growth nor inflation.

Asian markets

In tandem with their Western counterparts, Asian markets opened higher Thursday morning, baring China and Kospi. The Japanese Nikkei index traded 1.6% higher following the tech boom rally in the US, while Chinese shares traded lower after renewed restrictions on key companies in China supplying key semiconductors to the US. The Hong Kong’s Hangseng index traded over 1% lower on Thursday morning as trade restrictions dampened investor sentiments.

Crude oil

Crude oil prices dropped by 2% on Wednesday ahead of a key OPEC+ meeting on Thursday. The oil prices almost reversed their 2.7% gains on Tuesday. The OPEC+ meeting is scheduled to be held on Thursday, where, the key decision on oil production output supply is expected to be taken. Brent crude oil prices traded flat at $72.3 per barrel, while WTI crude traded near the $68 per barrel mark.

FII and DII data

The foreign institutional investors remained net buyers of equities for the second consecutive, fuelling a 4-day rally in the Indian markets. FIIs bought nearly ₹1800 crore worth of Indian equities on Wednesday, against which DIIs sold ₹900 crore worth of equities.

In addition, FIIs have reduced their short position in the Indian markets to nearly 82,000 contracts on the short side from the peak of 2.2 lakh contracts in November, indicating a change of stance by the FIIs.

Chart check

(Source: Tradingview,Upstox.pro) On a daily chart basis, the NIFTY50 formed a Doji pattern after it faced resistance at higher levels on Wednesday. The NIFTY50 touched the intraday high of 24,573 on Wednesday, which it failed to hold in the second of the day. Despite facing higher-level resistance, it managed to close above 50 DEMA levels of 24,371, indicating strength in the markets.