GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 186 points or 0.84% at 21,840 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 dropped 65.15 points or 0.29% to settle at 22,032.30, while the BSE Sensex lower higher by 199.17 points or 0.27% to 73,128.77.
“Markets took a breather after four days of advance and ended marginally lower. After the initial positivity, Nifty oscillated in a range and finally settled at 22,028 levels. On the sectoral front, the profit taking in the IT, realty and energy majors were weighing on the sentiment while metal and FMCG showed resilience. The broader indices too inched lower and lost nearly half a percent each,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Indications are in favor of further consolidation in the index and expect Nifty to hold the 21,750-21,900 zone. However, traders should maintain extra caution in stock selection now citing volatility due to earnings. Besides, the current positioning of the midcap and smallcap index is not reflecting the correct picture of deterioration in the broader trend so plan trades accordingly.
Key things to know before share market opens on January 17, 2024
Wall Street
U.S. bond yields rose and stocks fell on speculation that Wall Street’s bets on aggressive Federal Reserve rate cuts have gone too far, Bloomberg reported. The tech-heavy Nasdaq Composite dropped by 28.41 points or 0.19% at 14,944.35. The S&P 500 plunged by 17.85 points or 0.37% at 4,765.98, while the Dow Jones Industrial Average trading down by 231.86 points or 0.62% at 37,261.12.
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 103.35.
Crude Oil
WTI crude prices are trading at $71.99 down by 0.55%, while Brent crude prices are trading at $77.63 down by 0.84%, 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 0.84%, Japan’s Nikkei 225 is green, up by 1.29%, Hong Kong’s Hang Seng index is trading down by 2.16% and the benchmark Chinese index Shanghai Composite is trading higher by 0.27%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 656.6 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 369.3 crore on January 16, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Aditya Birla Fashion and Retail, Ashok Leyland, Bandhan Bank, Biocon, Chambal Fertilizers, Delta Corp, Hindustan Copper, India Cements, Indus Tower, Metropolis Healthcare, National Aluminium, Piramal Enterprise, Polycab India, PVRINOX, and Zee Entertainment to its F&O ban list for January 17, 2024.
Technical View
Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said The Nifty index experienced a day of mixed market dynamics, with bulls dominating the first half and bears taking control in the second half. For a sustained upward movement towards 22300 levels, the index needs to decisively break above the 22150 mark. On the downside, the immediate support is located at 21950, and a clear break below this level could trigger further corrections towards the 21800 mark.
Bank Nifty Outlook
“The Bank Nifty index displayed a doji candle, signaling a struggle between bulls and bears in the current market scenario. To witness a continuation of the rally towards 49000/50000, the index must sustain above the crucial level of 48300. Conversely, the immediate lower-end support lies in the 47800-47700 zone, and a conclusive break below this level could pave the way for further downside movements,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.