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 275 points or 1.14% at 24,376 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended down by 180.50 points or 0.74% to settle at 24,117 while the BSE Sensex plunged 581.79 points or 0.73% to 78,886.22.
“Markets struggled to maintain Wednesday’s recovery, ending over half a percent lower due to weak global cues. After an initial dip, the Nifty showed volatile movements, ultimately closing near the day’s low at 24,117. Sectors like IT, metals, and energy were the hardest hit. However, the broader indices outperformed slightly, posting only minor losses,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that the ongoing global uncertainty is making market participants cautious, and short-term relief seems unlikely. The Nifty is encountering resistance around the 24,350 mark, and a decisive break below 23,900 could lead to a further decline. Traders are advised to adjust their positions with a hedged strategy to navigate the current volatility.
Key things to know before share market opens on August 09, 2024
Wall Street
U.S. stocks jumped on Thursday, with the Nasdaq and S&P 500 each ending more than 2% higher after jobless claims fell more than expected in the latest week, soothing worries the labor market was weakening too quickly, reported Returns. The tech-heavy Nasdaq Composite ended up by 464.21 points or 2.87% at 16,660.02. The S&P 500 ended higher by 119.81 points or 2.30% at 5,319.31, while the Dow Jones Industrial Average is jumped by 683.04 point or 1.76% at 39,446.49.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded unchanged at 103.27.
Crude Oil
WTI crude prices are trading at $76.13 down by 0.08%, while Brent crude prices are trading at $79.09 down by 0.13%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading up by 0.16%, where as the Japan’s Nikkei 225 is trading in green, up by 1.97%, South Korea’s KOSPI index is traded higher by 1.48% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 2,626.73 crore, while domestic institutional investors (DII) mopped shares worth Rs 577.30 crore on August 08, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Punjab National Bank, Aditya Birla Capital, Aditya Birla Fashion and Retail, Birlasoft, GNFC, Hindustan Copper, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, RBL Bank in the F&O Ban on August 09, 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 weak note and after a volatile first half selling pressure emerged at higher levels resulting in a weak close down ~180 points. on the daily charts the lower end (24380) of the gap area formed on the 5th Aug continues to act as a stiff resistance.
Gedia also added that the pullback rallies towards the resistance levels is being sold into. The hourly momentum indicator has completed its pullback to the equilibrium line and started a new cycle on the downside. Thus, we can expect the weakness to continue. On the downside, 23900 is the crucial support and immediate target.
Bank Nifty Outlook
“The Bank Nifty was an outperforming sector as compared to Nifty in today’s trading session. However, the overall chart set-up for Bank Nifty is still weak and it is likely to find major resistance around the 50,700 to 50,900 area on an immediate basis. On the downside, the support zone lies at 49,650-700 / 49,000 while the resistance is seen at 50,400 / 50,700-900,” said Tejas Shah, Technical Research, JM Financial & BlinkX.