GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here is all you need to know before the market opens.
GIFT Nifty traded up by just 56 points or 0.25% at 22,675 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Tuesday, the NSE Nifty 50 ended down by 38.55 points or 0.17% to settle at 22,604.85 while the BSE dropped 188.50 points or 0.25% to 74,482.78.
“Tuesday was quite eventful as the Nifty briefly reclaimed its record high before settling flat at the 22,604.85 level. Although the tone was positive for most of the session, a sharp downturn in the final hours erased all the gains. Across sectors, we saw a mixed performance, with auto and realty sectors showing strong gains while IT, metal, and pharma ended in the red. The broader indices traded quietly and ended nearly unchanged,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, We view the intermediate profit-taking in the index as a healthy correction and anticipate Nifty to maintain support around the 22,300-22,400 zone. Most key sectors, except IT, are participating in the movement, so participants should adjust their positions accordingly.
Key things to know before share market opens on May 2, 2024
Wall Street
After a two-day meeting of the Federal Open Market Committee (FOMC), the US Federal Reserve announced today that it will keep the benchmark interest rates unchanged at 5.25% – 5.50% for the sixth consecutive meeting. This decision is in line with what was anticipated by analysts on Wall Street.
The US stock market got hit after the latest batch of economic data showed a plunge in consumer confidence and persistent wage pressures in the run-up to the Federal Reserve decision, Bloomberg reported. The tech-heavy Nasdaq Composite ended down by 52.34 points or 0.33% at 15,605.48. The S&P 500 dropped by 17.30 points or 0.34% at 5,018.39, while the Dow Jones Industrial Average ended higher by 87.37 points or 0.23% at 37,903.29.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.53% at 105.77.
Crude Oil
WTI crude prices are trading at $79.19 up by 0.23%, while Brent crude prices are trading at $83.64 up by 0.24%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Thursday morning. The Asia Dow is trading down by 0.16%, where as the Japan’s Nikkei 225 is trading in red, down by 0.32%, Hong Kong’s Hang Seng index is ended higher by 0.09% and the benchmark Chinese index Shanghai Composite is ended down by 0.26%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,071.9 crore, while domestic institutional investors (DII) mopped shares worth net Rs 1,429.1 crore on April 30, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Biocon and Vodafone Idea in F&O on May 2, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty witnessed selling pressure as it encountered resistance near the previous swing high, resulting in a weak closing. Other indicators such as the 20-day Simple Moving Average (SMA) and the 50-day SMA are positioned below the index value, suggesting that the ongoing positive trend remains intact. The Relative Strength Index (RSI) also indicates a bullish crossover. Over the next few days, the trend in the headline index might remain sideways unless it breaks above the all-time high of 22783. On the downside, immediate support is placed at 22500, below which the index might decline further.
Bank Nifty Outlook
“The Bank Nifty witnessed a volatile trading session during the expiry day, with bulls dominating the first half and bears taking control in the second half. Although the index fell short of reaching the 50,000 mark, the overall sentiment remains bullish. Dips in the index should be seen as buying opportunities, especially with strong support noted around the 49,000 mark, where the highest open interest lies on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.