GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Monday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 153.50 points or 0.62% at 24,773.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended down by 292.95 points or 1.17% to settle at 24,852.15 while the BSE Sensex plunged 1017.23 points or 1.24% to 81,183.93.
“On Friday, markets came under pressure and closed over a percent lower, weighed down by weak global cues. After a flat start, the Nifty gradually declined throughout the day, breaking multiple support levels to end at 24,852.15. The sell-off was broad-based, with the banking and energy sectors taking the biggest hit. Broader indices also saw declines, losing more than a percent each,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that The recent weakness in U.S. markets has stalled the momentum in Indian markets, causing participants to become cautious ahead of the upcoming jobs data. With the Nifty slipping below the crucial 20-day exponential moving average (DEMA), further downside is likely, with key support around 24,500 at the 50 DEMA. Given the circumstances, it is advisable to avoid taking aggressive positions and to apply strict stop losses on existing trades.
Key things to know before share market opens on September 9, 2024
Wall Street
U.S. stocks fell on Friday, weighed down by a jobs report that showed a continued labor market slowdown but left traders uncertain about how far the Federal Reserve will go in cutting interest rates, reported Reuters. The tech-heavy Nasdaq Composite ended down by 436.83 points or 2.55% at 16,690.83. The S&P 500 ended lower by 94.99 points or 1.73% at 5,408.42, while the Dow Jones Industrial Average is trading down by 410.34 point or 1.01% at 40,345.41.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded unchanged at 101.19.
Crude Oil
WTI crude prices are trading at $68.45 up by 1.15%, while Brent crude prices are trading at $71.79 up by 1.03%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Monday morning. The Asia Dow is trading down by 1.86%, where as the Japan’s Nikkei 225 is trading in red, down by 2.74%, South Korea’s KOSPI index is traded lower by 1.48% and the benchmark Chinese index Shanghai Composite trading in red, down by 0.89%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 620.95 crore, while domestic institutional investors (DII) bought shares worth Rs 2,121.53 crore on September 6, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Biocon, Chambal Fertilisers and Chemicals, Aditya Birla Fashion and Retail, Balrampur Chini Mills, Hindustan Copper, RBL Bank in the F&O Ban on September 9, 2024.
Technical View
Commenting on the Technical outlook of Nifty Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said that Nifty opened on a flat note and witnessed a sharp decline. It closed in the red down ~280 points. On the daily charts we can observe that the Nifty on account of the fall has reached the crucial support zone 24850 – 24800 which coincides with the 20 day moving average and the 38.2% Fibonacci retracement level. We expect the Nifty to hold on to this support zone and hence shall continue to maintain our short-term positive stance on the nifty. The immediate hurdle is placed at 25000.
Bank Nifty Outlook
“The Bank Nifty was clearly an underperforming sector and it was also primarily responsible for dragging Nifty lower during this week. It is likely to find resistance in the 50,900-51,100 area on an immediate basis. On the downside, the support zone lies at 50,350-450 / 49,650-700 while the resistance is seen at 50,900-51,100 / 51,375-400,” said Tejas Shah, Technical Research, JM Financial & BlinkX.