GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a muted opening on Friday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 42 points or 0.17% at 24,817 indicating a muted opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended up by 41.30 points or 0.17% to settle at 24,811.50. while the BSE Sensex jumped 147.89 points or 0.18% to 81,053.19.
“Markets ended slightly higher in a lackluster session, pausing after the recent rally. Following an initial uptick, the Nifty traded within a narrow range and closed at 24,811. Sectors like metals, FMCG, and banking supported the positive sentiment, while energy and IT remained subdued. The broader indices continued to provide support, with notable traction in the midcap segment,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Markets are closely monitoring global indices for direction, and the recent pause in US markets ahead of the Jackson Hole Symposium is leading to some caution locally also. Technically, there are signs of consolidation in the Nifty after it failed to break the resistance at 24,850 level. Despite this, we maintain a bullish outlook on the markets and recommend focusing on selective stock picking.
Key things to know before share market opens on August 23, 2024
Wall Street
Bond yields climbed and stocks got hit, with Wall Street traders betting Jerome Powell will throw cold water on market expectations for aggressive interest-rate cuts, reported Bloomberg. The tech-heavy Nasdaq Composite ended down by 299.64 points or 1.67% at 17,619.35. The S&P 500 ended lower by 50.21 points or 0.89% at 5,570.64, while the Dow Jones Industrial Average fell by 177.71 points or 0.43% at 40,712.78.
NSE tightens SME listing norms
The National Stock Exchange (NSE) has introduced new eligibility conditions for the listing of small and medium enterprises (SMEs) as of Thursday, addressing concerns about the quality of companies raising funds through this route. SMEs can list on the NSE Emerge platform and, upon meeting specified conditions, migrate to the mainboard.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.36% at 101.48.
Crude Oil
WTI crude prices are trading at $72.95 up by 1.54%, while Brent crude prices are trading at $77.25 up by 1.20%, on Fri day morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading up by 0.26%, where as the Japan’s Nikkei 225 is trading in green, up by 0.21%, South Korea’s KOSPI index is traded lower by 0.51% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 1,371.79 crore, while domestic institutional investors (DII) mopped shares worth Rs 2,971.80 crore on August 22, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Chambal Fertilisers and Chemicals, Indian Energe Exchange, RBL Bank, Aarti Industries, Aditya Birla Fashion and Retail, Birlasoft, GNFC, Granules India, Hindustan Copper, India Cements, LIC Housing Finance, NALCO, Piramal Enterprises, and Sun TV Network in the F&O Ban on August 23, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that The Nifty remained rangebound for another trading session. On the daily chart, the Nifty continues to move towards the upper Bollinger band. Additionally, the index has been sustaining above the critical near-term moving average. Sentiment may continue to favor the bulls as long as it remains above 24,650. On the other hand, the current rise might extend towards 25,000 in the near term.
Bank Nifty Outlook
“The benchmark index, Bank Nifty, is currently positioned at 50,952, with a key resistance level at 51,250. Should the index encounter selling pressure, the primary support is established at 50,500, with further support at 50,200. The overall technical outlook remains bullish, and a ‘buy on dips’ strategy is advisable, particularly if the index sustains levels above these critical support zones. This approach is expected to capitalize on the ongoing upward momentum while mitigating downside risks,” said Riyank Arora Technical Analyst at Mehta equities.