GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Thursday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 163 points or 0.57% at 24,251 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended down by 65.55 points or 0.27% to settle at 24,413.50 while the BSE Sensex fell 280.15 points or 0.35% to 80,148.89.
“The markets traded lackluster and ended slightly lower, continuing the ongoing consolidation phase. After a flat start, Nifty fluctuated within a narrow range, eventually closing at 24,413.50. Sector-wise, the trend was mixed, with energy, realty, and pharma showing decent gains, while banking and FMCG sectors declined. Notably, the broader indices performed well amid volatility, gaining between 1% and 2%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Nifty has remained firmly above the 20-day exponential moving average (DEMA) during this consolidation, indicating that the bulls are maintaining their grip despite weakness in the banking sector. We recommend maintaining a positive yet cautious stance on the index until Nifty decisively breaks below 24,200. Additionally, we reiterate our preference for index majors over others and suggest monitoring position sizes.
Key things to know before share market opens on July 25, 2024
Wall Street
The S&P 500 and Nasdaq ended at multi-week lows on Wednesday, with the S&P snapping one of its longest streaks without a daily decline of more than 2%, as lackluster Alphabet and Tesla earnings undermined investor confidence in megacap names, reported Returns. The tech-heavy Nasdaq Composite ended down by 654.94 points or 3.64% at 17,342.41. The S&P 500 ended lower by 128.61 points or 2.31% at 5,427.13, while the Dow Jones Industrial Average is down by 504.22 point or 1.25% at 39,853.87.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.12% at 104.37.
Crude Oil
WTI crude prices are trading at $77.37 down by 0.12%, while Brent crude prices are trading at $81.43 down by 0.34%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Thursday morning. The Asia Dow is trading down by 1.68%, where as the Japan’s Nikkei 225 is trading in red, down by 2.46%, South Korea’s KOSPI traded lower by 1.71% and the benchmark Chinese index Shanghai Composite ended down by 0.26%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 5,130.90 crore, while domestic institutional investors (DII) mopped shares worth Rs 3137.30 crore on July 24, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Vodafone Idea and India Cements, in F&O on July 25, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that the Nifty continues to remain volatile with a mild negative bias. On the daily chart, a small-bodied red candle has formed. However, the short-term trend remains positive as it closed above the 21-day exponential moving average. The Relative Strength Index (RSI) is showing a bearish crossover and is declining. Weakness might increase in the market in the short term if the Nifty falls below 24,350. On the higher end, resistance is seen at 24,600. A decisive move above 24,600 could trigger a meaningful rally in the market.
Bank Nifty Outlook
“The Bank Nifty was an underperforming sector and was also primarily responsible for dragging Nifty lower in today’s trading session. Technically, it also closed below the crucial support zone of 51,900-52,000 for two consecutive days, which is not a positive sign. It is likely to find resistance in the 51,900-52,000 area on an immediate basis. On the downside, the support zone lies at 50,900-51,000 / 50,500 while the resistance is seen at 51,900-52,000 / 52,500,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
