GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Friday. Here’s a look at things to know before markets open today.
GIFT Nifty traded up by 73 points or 0.29% at 25,560 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended up by 38.25 points or 0.15% to settle at 25,415.80 while the BSE Sensex jumped 236.57 points or 0.29% to 83,184.80.
“The markets ended almost unchanged in a volatile expiry session, continuing the recent trend. After a gap-up opening, the Nifty index moved higher during the first hour, but profit booking in heavyweight stocks across sectors erased those gains. Sector-wise, the trend remained mixed with FMCG, banking, and auto sectors edging higher, while metals and pharma faced pressure, closing in the red. Midcap and smallcap indices also saw noticeable declines, losing between 0.5% and 1%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that the movement resembled the US market’s response to the rate cut announcement, suggesting possible further profit-taking. However, the downside appears limited, with strong support around the 25,100-25,200 zone. Among key sectors, banking and financials are demonstrating resilience, while other sectors are trading with mixed trends. Traders are advised to maintain positions on both sides and focus more on index heavyweights.
Key things to know before share market opens on September 20, 2024
Wall Street
Major Wall Street indexes broke record highs after global counterparts booked gains and Treasury yields rose on Thursday as the start of the Federal Reserve’s first rate-cutting cycle in more than four years whet investors’ risk appetite, reported Reuters. The tech-heavy Nasdaq Composite ended up by 440.68 points or 2.51% at 18,013.98 The S&P 500 ended up by 95.38 points or 1.70% at 5,713.64, while the Dow Jones Industrial Average is trading up by 522.09 point or 1.26% at 42,025.19.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.34% at 100.66.
Crude Oil
WTI crude prices are trading at $70.98 down by 0.25%, while Brent crude prices are trading at $74.70 lower by 0.24%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Friday morning. The Asia Dow is trading up by 2.49%, where as the Japan’s Nikkei 225 is trading in green, up by 1.85%, South Korea’s KOSPI index is traded higher by 1.04% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14% on Friday.
FII, DII Data
Foreign institutional investors (FII) sold shares worth Rs 2,547.53 crore, while domestic institutional investors (DII) bought shares worth Rs 2,012.86 crore on September 19, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Chambal Fertilisers and Chemicals, NALCO, SAIL, Aarti Industries, Biocon, Birlasoft, GNFC, Granules India, LIC Housing Finance, Oracle Financial Services Software, Punjab National Bank, and RBL Bank in the F&O Ban on September 20, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that The Nifty formed a shooting star pattern on the hourly chart, suggesting an early sign of a bearish reversal. Additionally, the Nifty failed to close above the rising trendline despite a gap-up opening and strong global cues. Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550–25,600 range. On the lower end, support is placed at 25,350. Below which the Nifty might correct down towards 25100-25000.
Bank Nifty Outlook
“The Bank Nifty index has touched a key resistance level at 53,350, and selling pressure may emerge from current levels. Traders should be cautious, as this resistance could trigger a short-term pullback. Immediate support lies at 52,750, with a stronger support zone at 52,500. Despite potential near-term corrections, the overall trend remains positive. A break above 53,350 could resume the upward momentum, while declines towards support zones present buying opportunities with strict risk management,” said Riyank Arora Technical Analyst at Mehta equities.