GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here are the top things to know before the market opens.
GIFT Nifty traded down by 52 points or 0.24% at 21,700, indicating negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 dropped 76.10 points or 0.35% to settle at 21,665.80, while the BSE Sensex ended lower by 379.46 points or 0.53% to 71,892.48.
“Markets traded volatile for yet another session and lost nearly half a percent, in continuation to the prevailing consolidation phase. The beginning was subdued and pressure in the banking, auto and IT majors was weighing on the sentiment however resilience in the pharma and energy majors capped the damage. Eventually, the Nifty index ended with a modest cut to close at 21,665.80 level. The broader indices also witnessed a choppy trend and finally closed with a marginal cut,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, The underperformance of the banking majors is largely weighing on the sentiment amid consolidation and a decisive close above 21,800 in Nifty would prompt the next leg of the up move. Meanwhile, we feel it is prudent to prefer defensive viz. FMCG, pharma and stay selective in others.
Key things to know before share market opens on January 03, 2024
Wall Street
U.S. stocks and treasuries dropped as traders trimmed their bets on interest rate cuts, reported Bloomberg. The tech-heavy Nasdaq Composite dipped 299.22 points or 1.99% at 15,026.49. The S&P 500 dropped by 41.19 points or 0.86% at 4,728.64, while the Dow Jones Industrial Average ended higher by 0.25%.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.03% at 102.17.
Crude Oil
WTI crude prices are trading at $70.78 up by 0.57%, while Brent crude prices are trading at $76.16 up by 0.36%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading mostly in negative territory on Wednesday morning. The Asia Dow is trading down by 0.19%, Japan’s Nikkei 225 is red, down by 0.22%, Hong Kong’s Hang Seng index is trading down by 1.52% and the benchmark Chinese index Shanghai Composite is trading lower by 0.43%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 1,602.2 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 1959 crore on January 02, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indian Energy Exchange, SAIL, and Zee Entertainment to its F&O ban list for Jaunary 3, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said, A bearish candle has emerged on the daily Nifty chart, indicating a potential bearish trend in the near future. Sentiment is expected to stay bearish as long as it remains below 21750. Any upward movement toward 21750 could encounter selling pressure. However, a clear breakout above 21750 could shift sentiment in favor of the bulls. Support is established at 21500 on the lower end
Bank Nifty Outlook
“The Bank Nifty witnessed sustained bearish pressure throughout the trading day, leading to a close below the crucial support level of 48000. To resume the upward trend and regain positive momentum, the index needs to achieve a breakout above the resistance at 48300, targeting levels of 49000/50000. The immediate support for the index is positioned at 47600, coinciding with its 20-day moving average (20DMA). A decisive breach below this level could intensify the downward momentum,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.