GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Tuesday. Here’s a look at things to know before markets open today.
GIFT Nifty traded up by 171 points or 0.71% at 24,315.50 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended down by 662.10 points or 2.68% to settle at 24,055.60 while the BSE Sensex plunged 2222.55 points or 2.74% to 78,759.40.
“Markets plunged sharply on Monday, losing over 2.5% due to weak global cues. After a gap-down start, Nifty inched gradually lower throughout the day, briefly breaching the 50-day EMA support zone around 23,950 before closing at 24,055.60 level. All key sectors declined in line with the benchmark, with realty, metal, and energy being the top losers. The broader indices also suffered, losing between 3.6% and 4.6%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that we may see continued volatile swings with a negative bias due to multiple global headwinds, including the unwinding of Yen carry trades, recession fears in the US, and escalating tensions in the Middle East. On the index front, we are eyeing the 23,250-23,400 zone as key support for Nifty, while the 24,500-24,700 zone will act as resistance in the event of a rebound. Traders should align their positions accordingly and prefer a hedged approach. Investors, on the other hand, should view this correction as an opportunity to accumulate quality stocks on dips.
Key things to know before share market opens on August 06, 2024
Wall Street
Wall Street’s most-watched gauge of investor anxiety logged its largest ever intraday jump on Monday and closed at its highest since October 2020, as traders scrambled to hedge against market volatility during a global selloff fueled by U.S. recession fears, reported Returns. The tech-heavy Nasdaq Composite ended down by 576.08 points or 3.43% at 16,200.08. The S&P 500 ended lower by 160.23 points or 3% at 5,186.33, while the Dow Jones Industrial Average is down by 1,033.99 point or 2.60% at 38,703.27.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.26% at 102.95.
Crude Oil
WTI crude prices are trading at $74.23 up by 1.77%, while Brent crude prices are trading at $77.47 up by 1.54%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Tuesday morning. The Asia Dow is trading down by 6.50%, where as the Japan’s Nikkei 225 is trading in green, up by 8.76%, Hong Kong’s Hang Seng index is trade higher by 1.08% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.44%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 10,073.75 crore, while domestic institutional investors (DII) mopped shares worth Rs 9,155.55 crore on August 05, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Hindustan Copper, Aditya Birla Capital, Birlasoft, Chambal Fertilisers and Chemicals, GNFC, Granules India, India Cements, IndiaMART InterMESH, and RBL Bank in the F&O Ban on August 06, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that Nifty slipped back into the rising channel on the daily time frame due to heavy selling during the day. On the lower end, Nifty found initial support at the 50EMA before closing slightly higher. The RSI is in a bearish crossover and falling. Sentiment is likely to remain weak in the short term and may weaken further below 23,900. Support is placed at 23,900/23,700. On the higher end, resistance is seen at 24,200/24,500.
Bank Nifty Outlook
“The bank Nifty has also breached and closed below the previous swing low of 50440 suggesting continuation of the fall and is likely to drift lower towards 47650 – 47500 where the 200-day moving average is placed. The 20 week moving average is placed at 49800, which can provide some relief however rallies towards 50400 – 50500 should be used as a selling opportunity,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
