GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here’s a look at the key things to know before the market opens.
GIFT Nifty traded up by 82.50 points or 0.35% at 23,451.50 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 58.10 points or 0.25% to settle at 23,322.95 while the BSE Sensex jumped 149.98 points or 0.20% to 76,606.57.
“For the third consecutive day, markets remained within a narrow range and ended with slight gains. Following an initial uptick, Nifty rose during the early hours but gains were trimmed due to profit-taking in select heavyweights. It ultimately settled at 23,322.95, up by 0.2%. Sectoral trends were mixed, with energy, financials, and metals closing higher, while FMCG and auto sectors were subdued. Broader indices continued to show buoyancy, each gaining over a percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, After three days of consolidation, markets are expected to react to the outcome of the US Fed meeting in early trades on Thursday, which could set the tone for the day. We anticipate Nifty to hold within the 23,000-23,100 zone in case of a dip, while the 23,600-23,800 zone may act as an immediate resistance. Amidst these conditions, we reiterate our recommendation to seek buying opportunities on dips, focusing on sectors and themes that are drawing consistent interest.
Key things to know before share market opens on June 13, 2024
FOMC Outcome
The US Federal Reserve announced on Wednesday its decision to maintain its key interest rate unchanged, signaling expectations for only one rate cut before the year concludes. This revision marks a significant shift from earlier forecasts, which had anticipated three rate reductions, as inflation, despite recent moderation, remains persistently high.
In a statement following its two-day meeting, the Fed acknowledged the economy’s robust growth and noted that hiring has continued to be strong. Officials also observed “modest” progress towards achieving their 2% inflation target in recent months, reflecting a more positive outlook compared to their assessment in early May, when they expressed dissatisfaction with the pace of inflation control.
Inflation Data
India’s retail inflation, as gauged by the Consumer Price Index (CPI), showed signs of relief in May 2024, dropping to a 12-month low of 4.75% compared to 4.83% in April, according to data released by the National Statistics Office (NSO) today.
Whereas US inflation data for May 2024 indicates a notable slowdown, with the annual rate easing to 3.3% from 3.4% in April, falling below economists’ forecasts of 3.4%, according to the latest report from the Bureau of Labor Statistics (BLS).
Wall Street
The S&P 500 and Nasdaq posted record closing highs for a third straight day on Wednesday after inflation data came in softer than expected but the indexes ended off the day’s highs as the Federal Reserve projected only one interest rate cut this year, reported Reuters. The tech-heavy Nasdaq Composite ended up by 264.89 points or 1.53% at 17,608.44. The S&P 500 ended higher by 45.71 points or 0.85% at 5,421.03, while the Dow Jones Industrial Average dropped 35.21 point or 0.09% at 38,712.21.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.54% at 104.70.
Crude Oil
WTI crude prices are trading at $78.31 down by 0.01%, while Brent crude prices are trading at $82.47 up by 0.09%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading on a mixed note on Thursday morning. The Asia Dow is trading down by 0.52%, where as the Japan’s Nikkei 225 is trading in green, up by 0.53%, Hong Kong’s Hang Seng index is ended lower by 1.31% and the benchmark Chinese index Shanghai Composite traded up by 0.31%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 426.63 crore, while domestic institutional investors (DII) mopped shares worth Rs 233.75 crore on June 12, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Balrampur Chini Mills, GMR Airports, Hindustan Copper, SAIL, and India Cement in F&O on June 13, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty closed flat after a strong initial hour of trading, encountering resistance around 23,400. However, the short-term trend remains positive as the index stayed above 23,300. In the near term, the index might continue consolidating within the 23,300-23,500 range. A decisive breakout above 23,500 could trigger a rally towards 23,800.
Bank Nifty Outlook
“The Bank Nifty Index witnessed a sideways trading session on the day of the weekly expiry and was unable to surpass the 50000 mark, where the highest open interest is built up on the call side. The index needs to decisively surpass the 50000 mark to gain further momentum towards the 50500/51000 levels. The lower-end support is placed at 49400, and a break below this level will accelerate further selling pressure towards the 49000 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.