GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Monday. Here is all you need to know before the market opens.
GIFT Nifty traded down by just 2 points or 0.01% at 21,766 indicating lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 gained 52.20 points or 0.24% to settle at 21,710.80, while the BSE Sensex ended higher by 178.58 points or 0.25% to 72,026.15.
“Markets traded volatile and ended marginally higher amid mixed cues. After the initial uptick, Nifty drifted gradually lower and oscillated in a range till the end. Meanwhile, a mixed trend continued on the sectoral front wherein recovery in IT majors and follow-up buying in select heavyweights kept the traders occupied. The broader indices managed to edge higher for yet another session wherein smallcap gained over half a percent,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty is likely to spend some more time within the 21,500-21,800 zone citing mixed cues but tone is likely to remain positive. Traders should thus maintain their focus on stock selection and risk management. In absence of any major event, the performance of the global indices especially US would remain in the focus for cues in the coming sessions.
Key things to know before share market opens on January 08, 2024
Wall Street
U.S. stocks hinted at a rebound after a dour start to the year as investors digest data hinting that the Federal Reserve can pull off a soft landing for the world’s largest economy, Bloomberg reported. The tech-heavy Nasdaq Composite gained 13.77 points or 0.09% at 14,524.07. The S&P 500 surged by 8.56 points or 0.18% at 4,679.24, while the Dow Jones Industrial Average ended higher by 25.77 or 0.07%.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.05% at 102.41.
Crude Oil
WTI crude prices are trading at $73.82 up by 0.01%, while Brent crude prices are trading at $78.69 down by 0.06%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Monday morning. The Asia Dow is trading up by 0.37%, Japan’s Nikkei 225 is green, up by 0.27%, Hong Kong’s Hang Seng index is trading down by 0.66% and the benchmark Chinese index Shanghai Composite is trading lower by 0.85%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,696.8 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 3497.6 crore on January 05, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Chambal Fertilizer, Delta Corp, Escorts, Gujarat Narmada Valley Fertilizer and Chemicals, Indian Energy Exchange, Indian Cements, National Aluminium, Piramal Enterprise, SAIL, and Zee Entertainment to its F&O ban list for January 08, 2024.
Technical View
Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, Following a rapid rebound from its positional support at 21500, bullish activity has resumed in the market, with buying interest evident during dips. The prevailing sentiment is bullish, but Nifty encounters initial resistance at 21750, facing selling pressure. Immediate support rests at 21600. A conclusive close above 21750 levels could propel Nifty towards the 22000 mark, signaling further upward movement.
Bank Nifty Outlook
“Exhibiting a robust recovery from the 47500 support level, Bank Nifty showcases active bullish activity, rebounding from the 14-day moving average support at 47800. A closing above 48200 is crucial, as it could propel the index towards 48500 and 48800 levels. The immediate support for Bank Nifty stands at 47800, indicating a key level to monitor in the current market scenario,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.