GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 might see a lower opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty was down 245 points, or 0.98%, at 24,810 indicating a negative start for the domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 closed 60 points or 0.24% higher to settle at 25,011, while the BSE Sensex rose 126 points or 0.15% to finish at 81,8681.
Key things to know before share market opens on August 02, 2024
Wall Street
US markets slipped on Thursday as market participants feared recession might hit soon. The broader market index, the S&P 500, dropped 1.37% to close at 5,446.68. Similarly, the tech-heavy Nasdaq Composite dipped 2.3% to settle at 17,194. Meanwhile, the Dow Jones Industrial Average pulled back 494.82 points, or 1.21%, to end at 40,348. The smallcap index, Russel 2000, which has recently rallied also fell 3%.
US Dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading down 0.06% at 104.41 on Friday morning.
Crude Oil
WTI crude prices were trading at $76.67 up by 0.47%, while Brent crude prices were trading at $79.83 down by 1.16%, on Friday morning.
Asian Markets
On Friday morning, Asian markets were trading deep in red following the overnight sell-off on Wall Street. Japan’s Nikkei 225 tumbled 4.64% to 36,356. The Korean index Kospi was down 2.73% at 2,702. However, the Asia Dow was trading 4.19% lower at 3,472.74. The benchmark Chinese index Shanghai Composite was trading at 2,932.
FII, DII Data
Foreign institutional investors (FII) bought shares net worth Rs 2,089.28 crore. However, domestic institutional investors (DII) sold shares net worth Rs 337.03 crore on August 01, 2024, according to the provisional data available on the NSE.
Expert’s View
“On the daily charts, we can observe that the Nifty has broken out of a sideways consolidation on the upside. This breakout suggests a resumption of upmove after a brief pause. We expect the rally to continue towards 25330 – 25530 from a short-term perspective. Crucial support now stands at 24850 – 24800. The divergence between the daily and hourly momentum indicator can lead to a consolidation however price action is suggesting a breakout and hence we shall assign more weightage to the price action and continue to maintain our positive outlook on the Nifty,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty Outlook
“Bank Nifty continued to witness rangebound price action. The consolidation has taken the form of a symmetrical triangle pattern. A range breakout shall decide the further trend hereon. Thus, shall maintain our rangebound outlook for the Bank Nifty. The consolidation range for the Bank Nifty is likely to be 51300 – 52000,” said Gedia.
