GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty traded up by just 12.50 points or 0.06% at 22,406 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended down by 140.20 points or 0.62% to settle at 22,302.50 while the BSE plunged 383.69 points or 0.52% to 73,511.85.
“Markets edged lower and lost over half a percent, in continuation to the prevailing trend. After the flat start, the Nifty inched gradually lower as the day progressed and finally settled at 22,302 level. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein FMCG and IT edged higher while realty, metal and energy lost in the range of 2%-3.5%. The broader indices also witnessed pressure and lost over 2% each,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, Nifty has finally slipped below the short term moving average i.e. 20 EMA and is likely to witness further decline to the next major support around the 22,150 level. While the majority of sectors are seeing pressure, defensive viz. FMCG, IT and pharma are showing resilience, traders should plan their trades accordingly.
Key things to know before share market opens on May 8, 2024
Wall Street
US stocks remained close to their highest levels in about a month, with investors at crossroads about how much further the market can sustain the rebound from April’s selloff, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 45.22 points or 0.28% at 16,394.47. The S&P 500 gained by 12.18 points or 0.25% at 5,193.92, while the Dow Jones Industrial Average ended higher by 40.14 points or 0.10% at 38,892.41.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.22% at 105.42.
Crude Oil
WTI crude prices are trading at $78.23 down by 0.79%, while Brent crude prices are trading at $82.97 down by 0.67%, 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 0.28%, where as the Japan’s Nikkei 225 is trading in red, down by 1.06%, Hong Kong’s Hang Seng index is ended lower by 0.53% and the benchmark Chinese index Shanghai Composite is ended up by 0.22%.
FII, DII Data
Foreign institutional investors (FII) sold shares worth net Rs 3,668.8 crore, while domestic institutional investors (DII) mopped shares worth net Rs 2,304.50 crore on May 7, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion, Balarampur Chini Mills, Biocon, GMR Infra, Vodafone Idea, PNB, Sail, and Zee Entertainment Enterprise in F&O on May 8, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Technically, the trend has weakened as the index fell below the 21EMA. A Head and Shoulders pattern is visible on the hourly chart, with the index currently sustaining below the neckline, indicating a bearish formation. Further selling pressure is anticipated, possibly extending towards 21980-22000 in the short term, as long as it remains below 22400.
Bank Nifty Outlook
“On the hourly chart, a head and shoulders pattern has emerged, with the index already breaking below the neckline. More weakness is anticipated in the coming days, potentially pushing the index towards 47700. Resistance is observed at 48800 on the higher end,” said Rupak De, Senior Technical Analyst, LKP Securities.
