GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 81.50 points or 0.37% at 22,032 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended up by 172.85 points or 0.79% to settle at 22,011.95, while the BSE gained 539.50 points or 0.75% to 72,641.19.
“Markets surged strongly and gained nearly a percent, tracking favorable global cues. After the gap-up start, Nifty oscillated in a narrow range till the end and finally settled at 22,011.95 level. All the key sectors participated in the move wherein realty and metal were among the top gainers. The broader indices also made a strong comeback and gained ~2.5% each,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, The buoyancy in the US markets is not only helping the index to cap the damage and also triggering a rebound in between. On the benchmark front, Nifty tested the immediate hurdle of short term moving average i.e. 20 EMA today but it couldn’t surpass it. We may see some consolidation now and need sustainability above 22,200 to mark any meaningful recovery. Meanwhile, Participants should stay stock-specific until we see clarity over the next directional move and stick with the index majors and large midcaps.
Key things to know before share market opens on March 22, 2024
Wall Street
The relentless rally in U.S. stocks powered ahead on optimism the Federal Reserve will be able to engineer a soft landing, which would bolster the outlook for corporate earnings, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 32.43 points or 0.20% at 16,401.84. The S&P 500 gained by 16.91 points or 0.32% at 5,241.53, while the Dow Jones Industrial Average ended higher by 269.24 points or 0.68% at 39,781.37.
On Thursday, March 21, the American Depository Receipt (ADR) shares of leading Indian IT giants Infosys and Wipro experienced a decline 2-4% on Wall Street. This drop came in response to Accenture’s decision to lower its revenue growth guidance for FY24. The adjustment was made in light of an uncertain economic environment, which has led clients to cut back on spending for consulting services.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.51% at 103.94.
Crude Oil
WTI crude prices are trading at $80.89 down by 0.22%, while Brent crude prices are trading at $85.64 down by 0.17%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading up by 2.22%, where as the Japan’s Nikkei 225 is trading in green, up by 0.31% to new all time high, Hong Kong’s Hang Seng index is ended higher by 1.93% and the benchmark Chinese index Shanghai Composite is ended down by 0.08%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 1,826.9 crore, while domestic institutional investors (DII) bought shares worth net Rs 3,208.9 crore on March 21, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Biocon, Indus Tower, Piramal Enterprise, SAIL, Tata Chemicals, and Zee Entertainment Enterprise in F&O on March 22, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty rallied following a Doji candlestick pattern on the daily chart, indicating a robust bullish reversal. Additionally, the index has successfully reclaimed the crucial 50-day Simple Moving Average (SMA). Looking ahead, the Nifty could potentially extend its gains towards the range of 22250-25300. Moreover, a breakthrough above 22300 may initiate a rally towards 22500 and beyond. The buy-on-dips strategy is expected to remain viable as long as the Nifty maintains levels above 21840.
Bank Nifty Outlook
“The Bank Nifty remained volatile following a gap-up start. Sentiment improved as the index broke out above the recent consolidation. On the daily chart, the index formed a slightly higher bottom, suggesting diminishing bearishness. Over the short term, the index could move towards 47,000; a decisive move beyond 47,000 might propel it towards 47,700. Support is situated at 46,300 on the lower end,” said Rupak De, Senior Technical Analyst at LKP Securities.