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 108.50 points or 0.49% at 22,368 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended down by 17.30 or 0.08% to settle at 22,200.55 while the BSE dropped 117.58 points or 0.16% to 72,987.03.
“Following three days of rebound, the markets took a pause and closed nearly unchanged. Initially, there was an uptick, but pressure from certain heavyweights pushed the Nifty lower, leading to a range-bound movement until the end of the session. Meanwhile, a mixed trend prevailed on the sectoral front, with energy and realty sectors witnessing gains while FMCG and auto sectors ended in the red. However, the broader indices managed to post modest gains ranging from 0.5% to 1%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, We maintain our cautious outlook on the Nifty index, highlighting the resistance in the 22,300-22,400 zone, and suggest continuing with a stock-specific trading approach. In addition to domestic factors, it’s advisable to closely monitor the US markets for cues.
Key things to know before share market opens on May 16, 2024
Wall Street
Global stock markets rose to record highs while U.S. Treasury yields and the U.S. dollar fell on Wednesday as data showed U.S. consumer prices rose less than expected in April, suggesting inflation has resumed a downward trend in the second quarter, Reuters reported. The tech-heavy Nasdaq Composite ended up by 231.21 points or 1.40% at 16,742.39. The S&P 500 ends up by 61.47 points or 1.17% at 5,308.15, while the Dow Jones Industrial Average ended higher by 349.89 points or 0.88% at 39,908.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.88% at 104.14.
Crude Oil
WTI crude prices are trading at $79.07 up by 0.56%, while Brent crude prices are trading at $83.14 up by 0.47%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Thursday morning. The Asia Dow is trading up by 0.97%, where as the Japan’s Nikkei 225 is trading in green, up by 0.35%, Hong Kong’s Hang Seng index is ended lower by 0.22% and the benchmark Chinese index Shanghai Composite is ended down by 0.82%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 2,832.83 crore, while domestic institutional investors (DII) mopped shares worth net Rs 3,788.38 crore on May 15, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Biocon, Birlasoft, Granules, GMR Infra, LIC Housing Finance, Hindustan Copper, Vodafone Idea, Piramal Enterprises, Sail, India Cement, and Zee Entertainment Enterprise in F&O on May 16, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty largely traded sideways as the index failed to generate any significant directional breakout. Bulls struggled to push Nifty above the 22250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22250. A decisive move beyond this level could potentially propel Nifty towards 22600 and beyond. Conversely, a failure to sustain above 22200 might invite selling pressure in the market.
Bank Nifty Outlook
“The Bank Nifty index experienced sideways trading during the weekly expiry day, encountering resistance at the 48000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48500. On the downside, support is positioned at 47200, presenting favorable buying opportunities on dips toward this level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
