GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Monday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 73.50 points or 0.33% at 22,055.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended up by 97.70 or 0.44% to settle at 22,055.20 while the BSE jumped 260.30 points or 0.36% to 72,664.47.
“The markets experienced a rebound following a sharp decline on Thursday, closing with modest gains. Strong global cues initiated a positive start, but a mixed trend among heavyweight stocks limited the upside throughout the day. Ultimately, the market closed at 22,050 levels, marking a 0.40% increase. Metal, energy, and FMCG sectors were the top performers, while IT and realty sectors saw declines. Broader indices also recorded modest gains, each rising over half a percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, It’s advised not to place undue significance on a single day’s pause and to maintain a negative bias until the Nifty convincingly surpasses the 22,400 level. However, there are indications of resilience in certain areas, allowing participants to selectively explore buying opportunities. Looking ahead, the 21,800 level in Nifty is seen as critical, potentially influencing market direction.
Key things to know before share market opens on May 13, 2024
Wall Street
U.S. stocks eked out modest gains on Friday and all three indexes posted another weekly advance as investors parsed comments from Federal Reserve officials and looked ahead to crucial inflation data next week, Reuters reported. The tech-heavy Nasdaq Composite ended down by just 5.39 points or 0.03% at 16,340.87. The S&P 500 ends up by 8.60 points or 0.16% at 5,222.68, while the Dow Jones Industrial Average ended higher by 125.08 points or 0.32% at 39,512.84.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.04% at 105.34.
Crude Oil
WTI crude prices are trading at $78.07 down by 0.17%, while Brent crude prices are trading at $82.52 down by 0.32%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Monday morning. The Asia Dow is trading up by 1.20%, where as the Japan’s Nikkei 225 is trading in red, down by 0.20%, Hong Kong’s Hang Seng index is ended higher by 2.30% and the benchmark Chinese index Shanghai Composite is ended up by just 0.01%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 2,117.5 crore, while domestic institutional investors (DII) mopped shares worth net Rs 2,709.8 crore on May 10, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Canara Bank, GMR Infra, Hindustan Copper, Vodafone Idea, PNB, Sail, and Zee Entertainment Enterprise in F&O on May 13, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said On the daily chart, the index has broken down from the rising channel, indicating a rise in bearish sentiment. The trend is likely to remain weak in the near term, with resistance noted at 22,200. As long as the Nifty remains below this level, a strategy of selling on rallies may be favorable for traders. Support at the lower end is situated at 21,950 on a sustained basis; a decisive drop below this level could trigger panic in the market.
Bank Nifty Outlook
“The Bank Nifty index remained under the control of bears, encountering resistance at elevated levels. Immediate resistance for the Bank Nifty stands at 48,000, coinciding with the highest open interest on the call side. A breakthrough above this level could trigger fresh short-covering moves. On the downside, the index finds support at 47,050, represented by the 100-day exponential moving average (EMA). Sustaining above this level may pave the way for potential pullback moves in the index,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
