GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Thursday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 109 points or 0.51% at 21,470 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 dropped 460.35 points or 2.09% to settle at 21,571.95, while the BSE Sensex plunged by 1,628.01 points or 2.23% to 71,500.76.
“Markets plunged sharply on Wednesday and lost nearly 2%, tracking feeble cues. Pressure in the private banking majors post HDFC bank’s number combined with weak global cues was weighing on the sentiment. All key sectors, barring IT, surrendered to the fall wherein banking, metal and auto were among the top losers. Surprisingly, the broader indices managed to outperform the benchmark and shed nearly a percent each,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty has engulfed the gains of the last four sessions but somehow managed to hold the support zone of the short term moving average (20 EMA). The close indicates more pain ahead and can gradually inch towards the 21,200-21,450 zone. We thus suggest reducing existing longs on the bounce and looking for shorting opportunities as well.
Key things to know before share market opens on January 18, 2024
Wall Street
U.S. stocks joined losses in risk assets as bond yields climbed on bets the Federal Reserve will be in no rush to cut rates as the economy shows signs of strengt, Bloomberg reported. The tech-heavy Nasdaq Composite dropped by 88.73 points or 0.59% at 14,855.62. The S&P 500 plunged by 32.90 points or 0.69% at 4,733.08, while the Dow Jones Industrial Average trading down by 94.45 points or 0.25% at 37,266.67.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.08% at 103.37.
Crude Oil
WTI crude prices are trading at $72.85 up by 0.38%, while Brent crude prices are trading at $78.09 up by 0.27%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Thursday morning. The Asia Dow is trading down by 1.81%, Japan’s Nikkei 225 is green, up by 0.34%, Hong Kong’s Hang Seng index is trading down by 3.71% and the benchmark Chinese index Shanghai Composite is trading higher by 2.09%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 10,578.1 crore, while domestic institutional investors (DII) bought shares worth net Rs 4,006.4 crore on January 17, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion and Retail, Ashok Leyland, Bandhan Bank, Chambal Fertilizers, Delta Corp, Hindustan Copper, Indian Energy Exchange, Metropolis Healthcare, National Aluminium, Polycab India, PVRINOX, SAIL, and Zee Entertainment to its F&O ban list for January 17, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said Nifty witnessed a significant decline driven by profit-taking following its record high of 22,124 in the previous trading session. Wednesday’s profit booking led the index to the 21-day Exponential Moving Average, a crucial short-term moving average. Sentiment could potentially deteriorate further if Nifty drops below 21,550, where the 21EMA is situated. On the downside, a breach of 21,550 may result in the index descending towards 21,350. Conversely, on the upside, resistance is observed at 21,650.
Bank Nifty Outlook
“Bank Nifty experienced a sharp decline on the back of sell off in the heavyweight HDFCBANK. The index sharply fell below the 38.20% Fibonacci Retracement level of the previous leg of rally (from 43,230 to 48,347). Additionally, the index retreated within the area of the previous swing high after a consolidation breakdown on the daily chart. The sentiment may remain weak, with immediate support at 45,900-45,930. A drop below 45,900 could potentially initiate a further correction towards 45,500. On the upside, resistance is identified at 46,350,” said Rupak De, Senior Technical Analyst at LKP Securities.
