GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here’s a look at things to know before markets open today.
GIFT Nifty traded down by 72 points or 0.29% at 24,399 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended down by 30.20 points or 0.12% to settle at 24,479.05 while the BSE Sensex fell 73.04 points or 0.09% to 80,429.04.
“Union Budget day turned into a roller coaster for investors, with the Nifty Index fluctuating dramatically before ending the session flat. The initial mood was subdued, but the announcement of increased STT on F&O and higher STCG and LTCG tax rates sparked a sharp reaction midway through the day. However, buoyant performance from select heavyweights helped recover most of the losses in the latter half. Sector-wise, FMCG and IT displayed notable resilience, while realty, metals, and banking faced pressure. The broader indices also underperformed, declining between 0.6% and 0.9%.,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that given the volatility, we advise maintaining a cautious stance. It’s crucial for Nifty to sustain above the 24,200 level to keep a positive outlook; otherwise, profit-taking may intensify. Traders should adopt a hedged approach and favor defensive sectors such as FMCG, pharma, and IT for long trades. Conversely, avoid adding to positions in overbought themes like defense, railways, and select PSUs, and use any recovery to reduce exposure in loss-making trades.
Key things to know before share market opens on July 24, 2024
Wall Street
Wall Street’s main indexes ended slightly lower on Tuesday, having given up meager intraday gains in the final minutes of trading, as investors switched their focus to the latest earnings from Alphabet and Tesla, reported Returns. The tech-heavy Nasdaq Composite ended down by 10.22 points or 0.06% at 17,997.35. The S&P 500 ended lower by 8.67 points or 0.67% at 5,555.74, while the Dow Jones Industrial Average is down by 57.35 point or 0.14% at 40,358.09.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.21% at 104.52.
Crude Oil
WTI crude prices are trading at $77.33 down by 0.11%, while Brent crude prices are trading at $81.42 down by 0.09%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Wednesday morning. The Asia Dow is trading up by 0.96%, where as the Japan’s Nikkei 225 is trading in red, down by 0.22%, Hong Kong’s Hang Seng index is traded marginally lower by 0.21% and the benchmark Chinese index Shanghai Composite ended down by 0.05%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 2,975.31 crore, while domestic institutional investors (DII) mopped shares worth Rs 1418.82 crore on July 23, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added GNFC, India Cements, and SAIL in F&O on July 24, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that the Nifty remained highly volatile on budget day as traders adjusted their positions in accordance with the budget announcements. On the daily chart, a hammer kind of pattern has formed. On the other hand, the RSI is emerging from the overbought zone with a bearish crossover. On the lower end, immediate support is placed at 24,400. Heavy call writing at 24,500 indicates that the selling pressure will remain prevalent in the market until Nifty decisively breaches above 24,500. On the lower end, a fall below 24,400 might trigger a correction towards 24,200/24,000.
Bank Nifty Outlook
“The Bank Nifty was an underperforming sector and was also partially responsible for dragging Nifty lower in today’s trading session. Technically, the Bank Nifty closed below the level of 52,000, which has been acting as a psychological support for the past couple of days. This is a negative development for the time being. It is likely to find resistance in the 52,200-300 area on an immediate basis. On the downside, the support zone lies at 51,500 / 51,000-100 while the resistance is seen at 52,200-300 / 52,700-800,” said Tejas Shah, Technical Research, JM Financial & BlinkX.
