GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here is all you need to know before the market opens.
GIFT Nifty traded up by just 15.50 points or 0.07% at 22,605 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended down by 33.15 points or 0.15% to settle at 22,442.70 while the BSE gained just 17.39 points or 0.02% to 73,895.54.
“The market began the week quietly and concluded with little change, influenced by mixed signals. Despite an initial rise, the Nifty quickly gave up its gains and traded within a narrow range until the close, finishing at 22,442.70 levels. Various sectors saw a mixed performance, with realty and IT showing modest gains while energy and metal sectors saw declines. Broader indices performed weaker than the benchmark, experiencing losses ranging from 0.5% to 1.50%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, The significant increase in the volatility index, India VIX, is starting to impact sentiment, potentially continuing to exert pressure on the Nifty as it rises. Although the recovery in US markets and the resilience of certain heavyweights have mitigated some damage thus far, a clear break below 22,400 in the Nifty could dampen bullish sentiment. Traders are advised to maintain a hedged approach and focus on selective stock picking.
Key things to know before share market opens on May 7, 2024
Wall Street
US stocks headed toward their best three-day rally of 2024, extending a rebound fueled by expectations the Federal Reserve will be able to cut interest rates this year, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 192.92 points or 1.19% at 16,349.24. The S&P 500 gained by 52.95 points or 1.03% at 5,180.74, while the Dow Jones Industrial Average ended higher by 176.59 points or 0.46% at 38,852.27.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.05% at 105.10.
Crude Oil
WTI crude prices are trading at $78.97 up by 0.33%, while Brent crude prices are trading at $83.81 up by 0.34%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Tuesday morning. The Asia Dow is trading up by 0.61%, where as the Japan’s Nikkei 225 is trading in green, up by 1.29%, Hong Kong’s Hang Seng index is ended higher by 0.55% and the benchmark Chinese index Shanghai Composite is ended up by 1.16%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 2,168.75 crore, while domestic institutional investors (DII) mopped shares worth net Rs 781.39 crore on May 6, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion, Balrampur Chini Mills, Biocon, GMR Infra, Vodafone Idea, and SAIL in F&O on May 7, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty mostly traded sideways throughout the day, fluctuating between 22400 and 22550. Although the index ended above the short-term moving average, the 21EMA, on the daily chart, the sentiment appears somewhat bearish due to consecutive red candles, suggesting a prevalence of sellers over buyers. In the near term, sentiment could stay subdued as long as it stays below 22500. On the downside, there’s a possibility of the index sliding towards 22300.
Bank Nifty Outlook
“The BankNifty index underwent a sideways trading session, with bulls successfully defending the support zone around 49000-48900. Immediate resistance is noted at 49300, and a decisive breakthrough could trigger short-covering moves towards 49500. Conversely, a significant breach of the 48900 mark may induce further selling pressure towards 48400, where the 20DMA is positioned,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities