GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Saturday. Here is all you need to know before the market opens.
GIFT Nifty ended up by 17 points or 0.08% at 21,697.50 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Saturday. Previously, on Friday, the NSE Nifty 50 gained 160.15 points or 0.75% to settle at 21,622.40, while the BSE Sensex surged by 496.37 points or 0.70% to 71,683.23.
“Markets witnessed some respite after 3 days of decline and gained over half a percent. Firm global cues triggered a gap-up start in Nifty, followed by range bound movement till the end. Meanwhile, a mixed trend on the sectoral front kept traders occupied wherein FMCG, metal and energy edged higher while banking continued to reel under pressure. The broader indices maintained their outperformance and gained over a percent each,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty has reclaimed its short term moving average but lacks decisiveness. We reiterate our cautious view citing the prevailing underperformance of the banking and eyeing the 21,700-21,850 zone to act as a hurdle. Traders should continue stock-specific approach and prefer hedged trades.
Key things to know before share market opens on January 20, 2024
Wall Street
Wall Street is ending the week on a positive note, with stocks heading toward their all-time highs and the latest economic data reinforcing speculation the Federal Reserve will start cutting rates this year, reported Bloomberg. The tech-heavy Nasdaq Composite gained 238.19 points or 1.58% at 15,293.84. The S&P 500 surged by 55.26 points or 1.16% at 4,836.20, while the Dow Jones Industrial Average ended higher by 378.05 points or 1.01% at 37,846.66.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.30% at 103.23.
Crude Oil
WTI crude prices are trading at $73.56 down by 0.52%, while Brent crude prices are trading at $78.94 down by 0.20%, on Saturday morning.
Asian Markets
Shares in the Asia-Pacific region are ended Friday’s session in mixed territory. The Asia Dow is trading up by 0.79%, where as the Japan’s Nikkei 225 is ended in green, up by 1.40%, Hong Kong’s Hang Seng index is closed lower by 0.54% and the benchmark Chinese index Shanghai Composite is dropped by 0.47% to end Friday’s trading session.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 3,689.7 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,638.4 crore on January 19, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion and Retail, Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indian Energy Exchange, National Aluminium, Oracle Financial Services Software, Polycab India, RBL Bank, SAIL, and Zee Entertainment to its F&O ban list for January 20, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said The Nifty remained sideward throughout the session following a strong start. The index has moved back above critical near-term moving average. In the short term, the index is likely to consolidate within the bands of 21500 and 21700. A decisive breakout on either side would confirm a directional move.
Bank Nifty Outlook
“The Bank Nifty is currently witnessing a bearish trend, with bears exerting dominance from higher levels. The index encounters strong resistance around the 46300 mark, posing a significant hurdle for any upward movement. Active put writing indicates a lower-end support at 45500; however, breaching this level may intensify selling pressure. Additionally, the index is trading below short-term moving averages, signaling a bearish sentiment in the current market scenario,” said Rupak De, Senior Technical Analyst at LKP Securities.