GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a muted opening on Wednesday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 27 points or 0.11% at 24,690 indicating a muted opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended up by 126.20 points or 0.51% to settle at 24,698.85 while the BSE Sensex jumped 378.18 points or 0.47% to 80,802.86.
“The markets continued their upward momentum, gaining nearly half a percent. Nifty opened with a gap-up and edged higher during the early session, remaining range-bound until the close. Most sectors contributed to the gains, with banking, financial, and IT sectors leading the charge. The broader indices mirrored this performance, each adding almost half a percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that Nifty has reached its initial target of 24,700, and the current trend appears poised to continue. While all major sectors are participating, a sustained recovery in key banking stocks is essential to drive the index toward a new record high. We maintain our recommendation to adopt a “buy on dips” strategy and stay focused on stock selection.
Key things to know before share market opens on August 21, 2024
Wall Street
U.S. stocks closed slightly lower on Tuesday, breaking their recent winning streak amid few market-moving catalysts ahead of the Jackson Hole Economic Symposium, set to get under way on Thursday, reported Returns. The tech-heavy Nasdaq Composite ended down by 59.83 points or 0.33% at 17,816.94. The S&P 500 ended lower by 11.13 points or 0.20% at 5,597.12, while the Dow Jones Industrial Average is fell by 61.56 point or 0.15% at 40,834.97.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.49% at 101.37.
Crude Oil
WTI crude prices are trading at $73.09 down by 0.78%, while Brent crude prices are trading at $77.11 down by 0.71%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Wednesday morning. The Asia Dow is trading down by 0.02%, where as the Japan’s Nikkei 225 is trading in red, down by 0.77%, South Korea’s KOSPI index is traded lower by 0.17% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 1,457.96 crore, while domestic institutional investors (DII) mopped shares worth Rs 2,252.10 crore on August 20, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE addedNALCO, Aarti Industries, Aditya Birla Fashion and Retail, Balrampur Chini Mills, Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, India Cements, LIC Housing Finance, Manappuram Finance, Piramal Enterprises, RBL Bank, SAIL, and Sun TV Network in the F&O Ban on August 21, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that The Nifty moved above 24,700 after sustaining above 24,600. The trend is likely to remain strong as long as it stays above the 24,600-24,650 range. A decisive fall below 24,600 might trigger a reversal of the current uptrend. On the higher end, the Nifty might move towards 24,840-24,860.
Bank Nifty Outlook
“The benchmark index, Bank Nifty, is currently trading within a crucial support zone between 50,500 and 50,600. Below this, the next support levels are near 50,200 and 50,000. On the upside, immediate resistance is at 51,000, with the next resistance at 51,200. The overall trend remains positive, favoring a ‘buy on dips’ approach as the market holds above these key support levels,” said Riyank Arora Technical Analyst at Mehta equities.
