GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 6.50 points or 0.04% at 23,025.50 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended down by 24.65 or 0.11% to settle at 22,932.10 while the BSE ended marginally lower by just 19.89 points or 0.03% to 75,390.50.
“Markets experienced volatility and ended nearly unchanged, pausing after the recent surge. The tone was positive in the first half, but profit-taking in heavyweights in the latter half erased all the gains. Sectorally, the trend was mixed: realty and banking sectors edged higher, while energy and metal sectors came under pressure. Amid the choppiness, the broader indices regained strength, gaining between 0.6%-0.8%,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, The presence of resistance around the 23,100 level in the Nifty, along with a rise in the volatility index, India VIX, limited the upside. We may see further consolidation in the index ahead, so participants should focus on careful stock selection and effective trade management.
Key things to know before share market opens on May 28, 2024
Wall Street
US markets remained closed on Monday, May 27, in observance of Memorial Day. Wall Street ended at record highs on Friday. The tech-heavy Nasdaq Composite ended up by just 184.76 points or 1.10% at 16,920.79. The S&P 500 ends higher by 36.88 points or 0.70% at 5,304.72, while the Dow Jones Industrial Average ended little higher by just 4.33 points or 0.01% at 39,069.59.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.20 at 104.54.
Crude Oil
WTI crude prices are trading at $78.69 up by 0.13%, while Brent crude prices are trading at $82.04 up by 0.23%, on Tuesday morning.
Asian Markets
Asain markerts traded in mixed territory on Tuesday. The Asia Dow is trading up by 0.27%, where as the Japan’s Nikkei 225 is trading in red, down by 0.07%, Hong Kong’s Hang Seng index is ended higher by 1.17% and the benchmark Chinese index Shanghai Composite ended up by 1.14%.
FII, DII Data
Foreign institutional investors (FII) sold shares worth Rs 541.22 crore, while domestic institutional investors (DII) bought shares worth Rs 922.60 crore on May 27, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Biocon, GNFC, Hindustan Copper, Vodafone Idea, and Piramal Enterprises in F&O on May 28, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty remained mostly volatile during the day as India awaits the final phase of the general election. The near-term outlook remains positive, with the index staying above the crucial moving averages. Support lies at 22,900, below which the index might slip towards 22,800. On the higher end, bears are active around 23,000-23,050. A decisive move above 23,050 might trigger a stronger rally towards higher levels.
Bank Nifty Outlook
“Bank Nifty opened above the 49,000 resistance level but encountered selling pressure around the 49,600-49,800 range, setting 49,600 as a new resistance level. Significant put writing at the 49,000 strike price indicates strong support at this level. Closing above 49,600 could drive Bank Nifty towards 50,000. Overall sentiment is bullish, recommending a buy-on-dip strategy with a stop loss at 48,900.,” said Rupak De, Senior Technical Analyst, LKP Securities.
