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 the key things to know before the market opens.
GIFT Nifty traded down by 36 points or 0.15% at 23,684.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended up by 183.45 points or 0.78% to settle at 23,721.30 while the BSE Sensex gained 712.44 points or 0.92% to 78,053.52.
“The markets edged higher, gaining over half a percent, signaling a resumption of the uptrend after a brief pause. Following an initial uptick, Nifty traded within a range during the first half, but selective buying in heavyweight stocks, particularly from the banking sector, spurred a sharp surge as the day progressed. Besides banking, the IT sector also performed well, whereas the realty, metal, and energy sectors ended in the red. Amidst all this, the broader indices were slightly on the back foot, closing flat to marginally lower.,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, Nifty has finally surpassed the 23,600 hurdle after two weeks of consolidation, reaching a new record high. We maintain a positive outlook on the index, now targeting the next milestone of 24,000. We believe the current buoyancy in banking, coupled with notable strength in IT, will dictate the trend, while other sectors may contribute on a rotational basis. Traders should align their positions accordingly and avoid a contrarian approach.
Key things to know before share market opens on June 26, 2024
Wall Street
The Nasdaq rallied 1.3% on Tuesday, buoyed by strength in Nvidia, and other tech megacaps, while the Dow slipped as retailers weighed and investors waited for crucial inflation data due out this week., reported Reuters. The tech-heavy Nasdaq Composite ended up by 220.83 points or 1.26% at 17,717.65. The S&P 500 ended higher by 21.43 points or 0.39% at 5,469.30, while the Dow Jones Industrial Average ended lower by 299.05 point or 0.76% at 39,112.16.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.18% at 105.70.
Crude Oil
WTI crude prices are trading at $80.71 down by 0.09%, while Brent crude prices are trading at $84.82 down by 0.13%, on Wednsday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Wednesday morning. The Asia Dow is trading up by 1.66%, whereas Japan’s Nikkei 225 is trading in green, up by 0.36%, Hong Kong’s Hang Seng index ended unchanged and the benchmark Chinese index Shanghai Composite traded lower by 0.44%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 1175.91 crore, while domestic institutional investors (DII) offloaded shares worth Rs 149.45 crore on June 25, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added GNFC, Granules, Indus Tower, Punjab National Bank, and Sail, in F&O on June 26, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty continues to rise on the back of strength in the banking giants. The Nifty moved above 23,700 to make a new all-time high of 23,754, showing resilience amid global sluggishness. Put writers were very active at 23,600 and 23,700, while call writers unwound their positions, causing the PCR to rise. In the short term, the trend might remain strong as long as it stays above 23,500. On the higher end, the index might continue moving towards 24,000 in the near term.
Bank Nifty Outlook
“The BankNifty index broke above the resistance of 52,000, where the highest open interest was built up on the call side. The index is trading in a strong uptrend with higher highs and higher lows intact on the daily chart. The support now stands at 52,000, and intraday dips should be viewed as a buying opportunity for targets of 53,000/53,500,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
