GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Monday. Here’s a look at things to know before markets open today.
GIFT Nifty traded up by 105.50 points or 0.42% at 24,948 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 ended up by 11.65 points or 0.05% to settle at 24,823.15. while the BSE Sensex jumped 33.02 points or 0.04% to 81,086.21.
“Markets edged higher for the second consecutive week, moving closer to record highs, supported by favorable cues. Although the overall sentiment was positive from the start, mixed trends among the heavyweights limited the gains,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Given the favorable global environment, we expect the Nifty to overcome the resistance at 24,850 and aim for new record highs soon. However, sustained participation from the banking sector is needed to drive momentum and push towards the 25,500 level.
Key things to know before share market opens on August 26, 2024
Wall Street
U.S. stocks rallied on Friday as dovish remarks from U.S. Federal Reserve Chair Jerome Powell solidified expectations that the central bank will cut its key policy rate in September, reported Reuters. The tech-heavy Nasdaq Composite ended up by 258.44 points or 1.47% at 17,877.79. The S&P 500 ended higher by 63.97 points or 1.15% at 5,643.61, while the Dow Jones Industrial Average jumped by 462.30 points or 1.14% at 41,175.08.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.36% at 100.64.
Crude Oil
WTI crude prices are trading at $75.40 up by 0.76%, while Brent crude prices are trading at $77.44 up by 0.28%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Monday morning. The Asia Dow is trading down by 0.21%, where as the Japan’s Nikkei 225 is trading in red, down by 0.95%, South Korea’s KOSPI index is traded higher by 0.17% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 1,944.48 crore, while domestic institutional investors (DII) mopped shares worth Rs 2,896.02 crore on August 23, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Balrampur Chini Mills, Aarti Industries, Aditya Birla Fashion and Retail, Birlasoft, Chambal Fertilisers and Chemicals, GNFC, Granules India, Hindustan Copper, Indian Energe Exchange, India Cements, NALCO, RBL Bank, and Sun TV Network in the F&O Ban on August 26, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that Nifty experienced another day of lackluster movement. The RSI is showing a bullish crossover, and the trend remains positive as it closed above the 21 EMA. The market seems to favor a “buy on dips” strategy while it stays above 24,650. On the upside, Nifty faces resistance at 24,850-24,900/25,000. On the downside, the index could see a significant correction if it falls below 24,650.
Bank Nifty Outlook
“The Bank Nifty also witnessed rangebound price action and closed marginally in the red. The Bank Nifty can resume its upmove after couple of days of consolidation. On the upside, we expect can now witness a upmove towards 51500 – 51900 from short term perspective. A stoploss of 50400 should be maintained for the long positions,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.