GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Thursday. Here is all you need to know before the market opens.

GIFT Nifty traded up by 15 points or 0.07% at 22,735 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended down by 183.45 or 0.80% to settle at 22,704.15 while the BSE Sensex plunged 667.56 points or 0.89% to 74,502.90.

“Markets continued their corrective trend for another session, losing over half a percent. After an initial drop, the Nifty fluctuated within a range and ultimately closed near the day’s low at 22,704.70 level. Most sectors were under pressure, with banking, financial, and IT sectors being the top losers. Despite the overall decline, broader indices performed relatively better, finishing nearly flat to slightly negative,” said   Ajit Mishra – SVP, Research, Religare Broking.

Mishra also added that the recent decline signals caution among investors, and we anticipate Nifty finding support around the 22,550 level, which corresponds to the 20-day EMA. With the May derivatives contracts expiry approaching, volatility is expected to remain high. We recommend limiting aggressive long positions and adopting a hedged approach.

Key things to know before share market opens on May 30, 2024

Wall Street

A global equities gauge fell on Wednesday while U.S. Treasury yields rose after a third weak government debt auction in a row, and investors worried about higher interest rates while they waited for a key U.S. inflation report due on Friday, reported Reuters. The tech-heavy Nasdaq Composite ended down by 99.30 points or 0.58% at 17,920.58. The S&P 500 ended lower by 39.09 points or 0.74% at 5,266.95, while the Dow Jones Industrial Average ended lower by 411.32 points or 1.06% at 38,441.54.

US Dollar 

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.46% at 105.14.

Crude Oil 

WTI crude prices are trading at $79.14 down by 0.18%, while Brent crude prices are trading at $83.42 down by 0.15%, on Thursday morning.

Asian Markets

Shares in the Asia-Pacific region are trading on a mixed note on Thursday morning. The Asia Dow is trading down by 1.97%, whereas Japan’s Nikkei 225 is trading in red, down by 1.90%, Hong Kong’s Hang Seng index is ended lower by 1.83% and the benchmark Chinese index Shanghai Composite ended flat, marginally higher by 0.05%.

FII, DII Data

Foreign institutional investors (FII) sold shares worth Rs 5,841.84 crore, while domestic institutional investors (DII) bought shares worth Rs 5,233.79 crore on May 29, 2024, according to the provisional data available on the NSE.

F&O Ban

The NSE added  GMR Airports Infrastructure, Aditya Birla Fashion & Retail, Hindustan Copper, and Vodafone Idea in F&O on May 30, 2024.

Technical View

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Bears remained in control, leading to a sharp fall in Nifty. During the day, heavy call writing activities were seen at the 23,000 and 22,800 strikes, while put writing activities were visible at the 22,800 and 22,700 strikes. The option data suggests that Nifty might expire around 22,800. On the other hand, a fall below 22,700 might trigger additional selling pressure in the market. Immediate resistance is placed at 22,800.

Bank Nifty Outlook

“The Bank Nifty index has demonstrated a clear shift in sentiment by opening below its support level at 49,000 and trading beneath it. It closed near its 21-day EMA at 48,400. If Bank Nifty fails to maintain above the 21-day EMA, further selling pressure may drive it down to 48,000. Consequently, 48,400 now serves as the support level for Bank Nifty, with 49,000 acting as the new resistance level,” said  Rupak De, Senior Technical Analyst, LKP Securities.