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 64 points or 0.28% at 22,655 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended up by 117.75 points or 0.53% to settle at 22,474.05, while the BSE Sensex gained 408.86 points or 0.55% to 74,085.99.
“Markets traded volatile for yet another session but ended with decent gains. The tone was negative in the first half, tracking weak global cues, however resilience in banking combined with sharp recovery in the IT and FMCG majors completely changed the mood as the day progressed. Eventually, Nifty settled around the day’s high at 22,474.05 levels. Among the sectoral indices, banking, financials and pharma put up a good show while realty and metal witnessed profit taking. Meanwhile, underperformance continued on the broader front wherein smallcap shed nearly 2%.,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, The rotational buying across sectors is helping the index to maintain a positive tone and we are eyeing 22,800 in Nifty. However, the distribution on the broader front can’t be ignored. We thus reiterate our preference for index majors and large midcaps for long trades and suggest reducing exposure to the smallcap counters.
Key things to know before share market opens on March 7, 2024
Wall Street
U.S. stocks rose and bond yields fell after Jerome Powell reiterated, as expected, that the Federal Reserve is in no rush to cut interest rates, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 80.63 points or 0.51% at 16,020.22. The S&P 500 gained by 24.96 points or 0.49% at 5,103.61, while the Dow Jones Industrial Average ended higher by 63.48 points or 0.16% at 38,648.67.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.05% at 103.32.
Crude Oil
WTI crude prices are trading at $79.07 down by 0.07%, while Brent crude prices are trading at $82.83 down by 0.15%, 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 0.70%, where as the Japan’s Nikkei 225 is trading in green, up by 0.59%, Hong Kong’s Hang Seng index is ended higher by 1.70% and the benchmark Chinese index Shanghai Composite is ended down by 0.26%.
FII, DII Data
Foreign institutional investors (FII) mopped shares worth net Rs 2,766.75 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,149.88 crore on March 6, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Manappuram Finance, Mahanagar Gas, and Zee Entertainment Enterprise in F&O on March 7, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said the index exhibited volatility throughout the session but ultimately closed on a strong note. The short-term trend appears positive, as the index concluded the day above the 21EMA on the daily chart. Additionally, the momentum indicator RSI shows a bullish crossover, indicating a positive momentum for the short term. The bulls are likely to maintain control as long as the index stays above 22,350. Looking ahead, there is potential for the Nifty to reach levels between 22,600 and 22,700 on the higher end.
Bank Nifty Outlook
“The Bank Nifty index remains under the influence of a bullish trend, approaching its all-time high levels with a marginal gap of 600 points. The ongoing bullish sentiment is evident, backed by a robust support zone established at 47500-47400, serving as a defensive line for the index. Anticipated to surpass its historical highs in the next few trading sessions, the Bank Nifty sets its sights on upside potential targets at 49000/50000 in the near term,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.