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 26 points or 0.10% at 24,773.50 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended down by 32.40 points or 0.13% to settle at 25,356.50 while the BSE Sensex fell 71.77 points or 0.09% to 82,890.94.
“Indian markets overcame last week’s negative sentiments stirred by SEBI’s deadline over FII’s disclosure norms and recession fears in the US. Initial cautiousness among market participants was also influenced by a slew of macro-economic data points like US inflation & jobless claims, domestic inflation, and manufacturing data. Further, comments from the BoJ of a potential rate hike if inflation remains elevated also led to caution in the air,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair also added that Despite volatility, DIIs and FIIs flows remained positive as a strong monsoon, and an expectation of an uptick in demand during festive season drove investor sentiment. US inflation eased marginally, and the job market continued to see a cooling off. Indian inflation largely remained steady, while July IIP saw an uptick. The market hit a new high as the rate-cut optimism globally (ECB & US Fed) has provided a positive impetus across the global markets.
Key things to know before share market opens on September 16, 2024
Wall Street
Wall Street’s main indexes closed higher on Thursday after the latest inflation data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna’s weak revenue forecast made it the S&P 500’s biggest percentage loser, reported Reuters. The tech-heavy Nasdaq Composite ended up by 114.30 points or 0.65% at 17,683.98 The S&P 500 ended up by 30.26 points or 0.54% at 5,626.02, while the Dow Jones Industrial Average is trading up by 297.01 point or 0.72% at 41,398.78.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.15% at 100.96.
Crude Oil
WTI crude prices are trading at $68.81 up by 0.25%, while Brent crude prices are trading at $71.66 up by 0.07%, on Monday morning.
Asian Markets
The Asia-Pacific region experienced a subdued start to trading, as several key markets remain closed for an extended holiday weekend. The thin trading conditions were further impacted by reduced participation as investors brace for a series of central bank meetings this week, including the highly anticipated Federal Open Market Committee (FOMC) meeting.
With market activity expected to pick up later in the week, traders are keeping a close watch on the outcomes of these central bank meetings, which could set the tone for global financial markets in the coming days.
FII, DII Data
Foreign institutional investors (FII) mopped shares worth Rs 2,364.82 crore, while domestic institutional investors (DII) bought shares worth Rs 2,532.18 crore on September 13, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers, Granules, Hindustan Copper, and RBL Bank in the F&O Ban on September 16, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst at LKP Securities, said that The index remained range-bound throughout the day. On the higher end, it faced resistance at the rising trendline on the daily chart. On the lower timeframes, the RSI has entered a bearish crossover, signaling an early indication of a potential bearish momentum reversal. In the near term, the trend may remain sideways. Support is observed at 25,150–25,200, while resistance is seen at 25,460.
Bank Nifty Outlook
“The Bank Nifty was also an outperforming sector and was partially responsible for taking Nifty higher during this week. It is trading around the psychological resistance level of 52,000 and any decisive close above the same can trigger 1% to 2% rally on an immediate basis in Bank Nifty. On the downside, the support zone lies at 51,500 / 50,950-51,000 while the resistance is seen at 52,000 / 52,350-400 / 52,750-800.,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
