GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 52 points or 0.23% at 22,865 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended down by 44.30 or 0.19% to settle at 22,888.15 while the BSE ended lower 220.04 points or 0.29% to 75,170.46.
“It was a subdued session as expected, with the Nifty fluctuating within a narrow range and closing slightly lower. Most sectors experienced pressure, with realty and energy being the top losers. The broader indices followed a similar pattern, with both midcap and smallcap indices losing nearly a percent each,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, Indications suggest that the ongoing consolidation will persist, keeping the Nifty within the 22,700-23,100 range. Given the overall bullish trend, traders should use dips toward the lower end of this range to accumulate quality largecap and large midcap stocks. Sector-wise, traders should closely monitor IT and FMCG for cues, as other sectors have already performed well.
Key things to know before share market opens on May 29, 2024
Wall Street
The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose, repoted Reuters. The tech-heavy Nasdaq Composite ended up by 99.09 points or 0.59% at 17,019.88. The S&P 500 ends higher by just 1.32 points or 0.02% at 5,306.04, while the Dow Jones Industrial Average ended lower by 216.73 points or 0.55% at 38,852.86.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.05% at 104.70.
Crude Oil
WTI crude prices are trading at $80.20 down by 0.10%, while Brent crude prices are trading at $84.52 down by 0.12%, on Wednesday morning.
Asian Markets
Asian Markets traded in mixed territory on Wednesday. The Asia Dow is trading up by 0.17%, where as the Japan’s Nikkei 225 is trading in green, up by 0.66%, Hong Kong’s Hang Seng index is ended lower by 0.03% and the benchmark Chinese index Shanghai Composite ended down by 0.46%.
FII, DII Data
Foreign institutional investors (FII) mopped shares worth Rs 66 crore, while domestic institutional investors (DII) bought shares worth Rs 3,232 crore on May 28, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion & Retail, Biocon, GNFC, Hindustan Copper, Vodafone Idea, and Piramal Enterprises in F&O on May 29, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The index remained within a range as the lack of a breakout on either side failed to provide any directional movement. Significant Call writing was observed at the 23000 strike price, followed by the 23100 and 22900 strikes. In comparison to the heavy Call writing, Put writers were less active, leading to a decline in the PCR. The high India VIX suggests that market volatility might remain elevated. On the higher end, the 22950-23000 zone might act as a strong resistance, and any rise may attract selling pressure. On the lower end, the Nifty might drift down towards 22800/22600.
Bank Nifty Outlook
“The Bank Nifty index found strong resistance at 49500-49600 due to visible selling pressure, while 49000 serves as a robust support level. The momentum indicator RSI at 61 and the index maintaining above its 14-day EMA indicate a bullish undertone. A buy-on-dips strategy is recommended, with a stop-loss set at 48700. On the higher end, 49500-600 might continue to remain a strong resistance.,” said Rupak De, Senior Technical Analyst, LKP Securities.
