GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Friday. Here is all you need to know before market opens.
GIFT Nifty traded down by just 12.50 points or 0.06% at 21,766.50, indicating negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 gainned 141.25 points or 0.66% to settle at 21,658.60, while the BSE Sensex ended higher by 490.97 points or 0.69% to 71,847.57.
“Markets rebounded swiftly and gained over half a percent, taking a breather after two days of decline. Nifty opened with an uptick despite the weak global cues and inched gradually higher as the day progressed. Meanwhile, a mixed trend continued on the sectoral front wherein a move in the realty pack was the highlight of the day while auto and metal ended unchanged. The broader indices also posted strong gains in the range of 1%-1.7%,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Feeble global cues combined with mixed trends across heavyweights are pointing towards further consolidation in the index. Traders should continue with stock-specific trading approach, with a focus on overnight risk management.
Key things to know before share market opens on January 05, 2024
Wall Street
U.S. Treasury yields rose, while stocks clawed back gains after robust jobs data sparked doubts about how soon and deeply the Federal Reserve could start cutting interest rates, reported Bloomberg. The tech-heavy Nasdaq Composite dipped 45.15 points or 0.31% at 14,547.06. The S&P 500 dropped by 4.44 points or 0.09% at 4,700.37, while the Dow Jones Industrial Average ended higher by 35.53 or 0.09%.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.02% at 102.40.
Crude Oil
WTI crude prices are trading at $72.26 up by 0.10%, while Brent crude prices are trading at $77.61 up by 0.03%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading mostly in negative territory on Thursday morning. The Asia Dow is trading down by 0.78%, Japan’s Nikkei 225 is green, up by 0.21%, Hong Kong’s Hang Seng index is trading down by 0.01% and the benchmark Chinese index Shanghai Composite is trading lower by 0.43%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,513.4 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 1,387.4 crore on January 04, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Chambal Fertilizer, Delta Corp, Escorts, Gujarat Narmada Valley Fertilizer and Chemicals, Hindustan Copper, Indian Energy Exchange, Indian Cements, National Aluminium, SAIL, and Zee Entertainment to its F&O ban list for January 5, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said, The Nifty’s swift recovery following two bearish days indicates continued dominance by the bulls in the market. The present sentiment suggests a promising trajectory towards 21800-21850 for the Nifty. If it surpasses 21850, we might anticipate a further climb toward 22000. Notably, the index appears to have a short-term support level around 21500. A downward shift would likely initiate only if it falls below this mark; until then, it seems favorable for buyers to take advantage of market dips.
Bank Nifty Outlook
“The Bank Nifty witnessed a robust comeback by the bulls, decisively surpassing the hurdle at 48,000 on a closing basis. This breakthrough confirms the resumption of the uptrend, indicating a potential move towards the target of 50,000. The bullish crossover in the RSI further supports the positive momentum. In case of any pullback, the index has a solid support at 47,700, serving as a cushion for the bulls,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securitie.