GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Friday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 36.50 points or 0.17% at 21,774.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Friday. Previously, on Thursday, the NSE Nifty 50 ended down by 212.55 points or 0.97% to settle at 21,717.95, while the BSE Sensex plunged by 723.57 points or 1% to 71,428.43.
“Markets traded under pressure on the weekly expiry day and lost nearly a percent. After the flat start, Nifty slipped sharply lower in the first half however it tried to trim losses in the middle but sustained decline in the private banking majors continues to weigh on the sentiment. Most sectors traded in sync with the move wherein FMCG, banking and financials were among the worst hit. Amid all, the broader indices showed resilience and managed to end on a flat note,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, The fresh decline in the private banking majors and select heavyweights like ITC has again pushed the Nifty to its crucial support zone of short term moving average i.e. 20 DEMA. And, a decisive close below 21,600 would again push the bulls on the back foot. We thus suggest hedging the existing longs and waiting for clarity.
Key things to know before share market opens on February 9, 2024
Wall Street
The U.S. stock market lost a bit of steam after hitting a fresh record, with traders awaiting a $25 billion sale of Treasuries that will test Wall Street’s appetite for longer-term bonds following solid debt sales this week, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by 25.96 points or 0.16% at 15,782.60. The S&P 500 gained by just 2.28 points or 0.05% at 4,997.34, while the Dow Jones Industrial Average gained by 22.84 points or 0.06% at 38,700.20.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.01% at 104.16.
Crude Oil
WTI crude prices are trading at $76.45 up by 0.30%, while Brent crude prices are trading at $81.68 up by 0.06%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region will be partially or fully closed on Friday as the region enters the Lunar New Year holiday period. The Asia Dow is trading up by 0.20%, where as the Japan’s Nikkei 225 is trading in green, up by 0.68%, Hong Kong’s Hang Seng index is ended lower by 1.27% and the benchmark Chinese index Shanghai Composite is ended higher by 1.28% on Thursday.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 4.933.7 crore, while domestic institutional investors (DII) bought shares worth net Rs 5.512.3 crore on February 8, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Ashok Leyland, Aurobindo Pharma, Balrampur Chini Mills, Biocon, Delta Corp, Hindustan Copper, India Cements, Indus Tower, National Aluminium, PNB, SAIL, UPL on February 9, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty experienced a sharp decline as follow-up selling emerged following profit booking in the previous trading session. However, on the lower end, it found initial support at the 20DMA. The trend could weaken if it drops below 21,690, at which point the index may decline towards 21,500. On the contrary, if it remains above 21,700, we might observe a recovery in the near term.
Bank Nifty Outlook
“The Bank Nifty index experienced a robust comeback by bears, encountering substantial selling pressure following the RBI policy announcement. The critical support zone of 45500 has been breached and is now expected to act as a resistance level. Pullbacks towards this mentioned resistance are considered opportune levels for selling. The subsequent support is positioned at 44400, and a break below this level is likely to intensify selling pressure, potentially leading the index towards the 44000 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
