GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Monday. Here’s a look at things to know before markets open today.
GIFT Nifty traded up by 39 points or 0.16% at 24,629 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended up by 397.40 points or 1.65% to settle at 24,541 while the BSE Sensex jumped 1,330.96 points or 1.68% to 80,436.85.
“Markets staged a robust recovery on Friday, gaining nearly 1.5%, driven by positive global cues. After opening with a gap-up, the Nifty initially lost all its gains in the early hours but rebounded due to strong buying interest in select heavyweight stocks. As a result, the Nifty decisively crossed the resistance at 24,400, closing near the day’s high at 24,541.15. The rally was broad-based across sectors, with IT, realty, and auto stocks leading the gains. The broader indices also showed a solid recovery, each advancing nearly 2%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that with the Nifty breaking out of its consolidation phase, it appears poised to close the gap around the 24,700 level. If there is any dip, the 24,300-24,400 zone should provide support. We recommend aligning trades with a focus on stock picking. In the absence of any major domestic triggers, attention will remain on global market performance for further cues.
Key things to know before share market opens on August 19, 2024
Wall Street
U.S. stocks ended higher on Friday, extending their biggest weekly percentage gains of the year as worries of an economic downturn eased and investors focused on the Jackson Hole Economic Symposium next week, reported Returns. The tech-heavy Nasdaq Composite ended up by 37.22 points or 0.21% at 17,631.72. The S&P 500 ended higher by 11.03 points or 0.20% at 5,554.25, while the Dow Jones Industrial Average is jumped by 96.70 point or 0.24% at 40,659.76.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.03% at 102.43.
Crude Oil
WTI crude prices are trading at $76.53 down by 0.16%, while Brent crude prices are trading at $79.55 down by 0.16%, 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 2.82%, where as the Japan’s Nikkei 225 is trading in red, down by 0.42%, South Korea’s KOSPI index is traded marginally lower by 0.01% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 766.52 crore, while domestic institutional investors (DII) mopped shares worth Rs 2,606.18 crore on August 16, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aarti Industries, Aditya Birla Fashion and Retail, Bandhan Bank, Biocon, Chambal Fertilisers and Chemicals, GNFC, Granules India, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, NMDC, Piramal Enterprises, Punjab National Bank, RBL Bank, SAIL, Sun TV Network in the F&O Ban on August 19, 2024.
Technical View
Commenting on the Technical outlook of Nifty Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that Nifty on Friday opened with a huge gap up today and after the initial bout of volatility, it traded with a positive bias to close the day up ~410 points. On the daily charts, we can observe that the Nifty has held on to the 40-day average (24150) and has witnessed a sharp pullback.
Gedia also added that the Nifty is now heading towards the 24626 – 24650 zone where the 61.82% Fibonacci retracement level and the gap area formed on the 5th Aug is placed. Considering the sharp pullback, we change the short-term trend to sideways from negative and the range of consolidation is likely to be 2400 – 24200.
Bank Nifty Outlook
“The Bank Nifty, has touched its resistance at the 50,600 mark and witnessed some profit booking. A slight cooldown toward the 50,400 level is expected before a fresh rally towards the 51,000 zone. The current market scenario favors a ‘buy on dips’ strategy, with a recommended stop loss at 50,100. We anticipate a renewed uptrend targeting 51,000 as banking stocks stabilize at support levels,” said Riyank Arora Technical Analyst at Mehta equities.