GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Monday. Here is all you need to know before the market opens.
GIFT Nifty traded up by just 112 points or 0.50% at 22,693 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended down by 172.35 points or 0.76% to settle at 22,475.85 while the BSE plunged 732.96 points or 0.98% to 73,878.15.
“Once again, the markets experienced significant volatility, ending the day with a loss of nearly one percent. Despite a positive start driven by strong global cues, profit-taking in heavyweight stocks not only wiped out early gains but also pushed the index into negative territory. Ultimately, the Nifty settled around the 22,456.65 mark, down by 0.85%. Major sectors such as auto, IT, and realty were among the primary losers. Additionally, broader indices also saw a decline of almost half a percent each,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, The sharp drop in the index has nullified the gains made over the past four sessions, although it managed to hold above the support zone represented by the short-term moving average i.e. 20 DEMA. We recommend a selective approach and suggest considering hedged positions if the Nifty fails to maintain the 22,400 level. Besides domestic factors, it’s crucial for traders to closely monitor the performance of the US markets for further guidance.
Key things to know before share market opens on May 6, 2024
Wall Street
Wall Street took a slowdown in the US jobs market as an indication that the Federal Reserve will be able to start cutting rates as early as September, with traders sending stocks up sharply as bond yields fell, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 308.14 points or 1.95% at 16,149.10. The S&P 500 gained by 63.59 points or 1.26% at 5,127.79, while the Dow Jones Industrial Average ended higher by 449.63 points or 1.18% at 38,675.29.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.05% at 105.13.
Crude Oil
WTI crude prices are trading at $78.16 up by 0.22%, while Brent crude prices are trading at $82.96 up by 0.17%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Monday morning. The Asia Dow is trading up by 0.17%, where as the Japan’s Nikkei 225 is ended in red, down by 0.10%, Hong Kong’s Hang Seng index is ended higher by 1.48% and the benchmark Chinese index Shanghai Composite is ended down by 0.26%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 2,392. crore, while domestic institutional investors (DII) mopped shares worth net Rs 690.5 crore on May 3, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion, Balrampur Chini Mills, Biocon, GMR Infra, and Vodafone Idea in F&O on May 6, 2024.
Technical View
Commenting on the Technical outlook of Nifty Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said The Nifty index is showing signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market. Confirmation of the double top pattern would require follow-up selling in the upcoming week. Immediate resistance is noted at the 22,600-22,700 zone, where aggressive call writing has been observed in the options market. On the downside, the index has immediate support at 22,300, and a breach below this level could accelerate the downside momentum.
Bank Nifty Outlook
“The Bank Nifty index faced selling pressure from higher levels but maintained its uptrend, closing near the immediate support of 49,000. Immediate resistance is at 49,200, and a break above could trigger short-covering moves towards 49,500 levels. Conversely, immediate support lies at 48,800-48,700, and a breach might lead to further downside towards the 48,400 mark, where the 20DMA is situated,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
