GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty traded up by 77 points or 0.36% at 21,548.50 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 dropped 109.70 points or 0.51% to settle at 21,562.25, while the BSE Sensex plunged by 313.90 points or 0.44% to 71,186.86.
“Markets extended fall and lost half a percent amid volatility. After the gap-down opening, Nifty tried to pare losses but continued fall in HDFC Bank and fresh decline in select heavyweights capped the recovery. Meanwhile, energy, banking and metal were among the top losers on the sectoral front while pharma and realty showed some strength. The broader indices also managed to end unchanged after a volatile swing,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty couldn’t defend the short term moving average i.e. 20 EMA on the expected lines and came closer to the next crucial support of 21,200 level. Indications are now in favor of some consolidation after the recent fall and any rebound to 21,700-21,850 would attract fresh shorts. We thus reiterate our view to reduce positions on the rise and wait for some stability in the trend.
Key things to know before share market opens on January 19, 2024
Wall Street
U.S. stocks retreated and bond yields climbed on speculation the Federal Reserve will be in no rush to cut interest rates as the economy shows signs of resilience, Bloomberg reported. The tech-heavy Nasdaq Composite gained 200.03 points or 1.35% at 15,055.65. The S&P 500 surged by 41.73 points or 0.88% at 4,780.74, while the Dow Jones Industrial Average ended higher by 201.94 points or 0.54% at 37,468.61.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.16% at 103.37.
Crude Oil
WTI crude prices are trading at $74,01 down by 0.08%, while Brent crude prices are trading at $78.98 down by 0.16%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Friday morning. The Asia Dow is trading up by 0.68%, Japan’s Nikkei 225 is green, up by 1.34%, Hong Kong’s Hang Seng index is trading higher by 0.75% and the benchmark Chinese index Shanghai Composite is trading higher by 0.43%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 9,901.6 crore, while domestic institutional investors (DII) bought shares worth net Rs 5,977.1 crore on January 18, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion and Retail, Ashok Leyland, Balrampur Chini Mills, Bandhan Bank, Delta Corp, Hindustan Copper, Indian Energy Exchange, Metropolis Healthcare, National Aluminium, Polycab India, PVR Inox, SAIL, and Zee Entertainment to its F&O ban list for January 19, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said The Nifty slipped below the rising trendline on the daily chart, suggesting a bearish trend reversal. Besides, the index has fallen below the critical near-term moving average. Now, the trend is likely to remain weak as long as the index stays below 21,550. A decisive move above 21,550 might weaken the bears; until then, bears might control the market. On the lower end, support is placed at 21,400. A drift below 21,400 might take Nifty for a revisit to 21,250-21,200.
Bank Nifty Outlook
“The bears maintained control over the Bank Nifty index, leading to a 0.76% decline. The index’s immediate support is positioned at the 45500-45400 zone, and a successful defense of this level could trigger a rebound towards 46500. Despite potential short-term fluctuations, the broader trend continues to favor a “sell on rise” approach, suggesting caution and a likelihood of further declines if the mentioned resistance level is not convincingly breached,” said Rupak De, Senior Technical Analyst at LKP Securities.