GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Monday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 31.50 points or 0.14% at 21,935 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex
“It turned out to be a roller coaster ride for participants on Friday as the benchmark oscillated sharply on both sides and ended with modest gains. After the gap-up start, Nifty marched towards its record high but couldn’t hold that level for long and surrendered most of its gains. Among the key sectors, energy, metal and IT ended with strong gains while banking and FMCG closed in the red. The broader indices too traded mixed wherein smallcap managed to gain nearly a percent,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, Nifty has retested its record high after consolidating for two weeks but we feel it is early to assume that we are set for the next leg of the up move. It needs sustainability above 22,150 to march towards 22,500+. Besides, consistency in the participation from the banking majors is also critical for a steady trend else the range-bound trend would continue. Traders should focus more on stock selection in the present scenario and maintain positions on both sides.
Key things to know before share market opens on February 5, 2024
Wall Street
The U.S. stock market extended the week’s gains amid a rally in big tech and as a solid jobs report bolstered the outlook for corporate America, reported Bloomberg. The tech-heavy Nasdaq Composite gained 277.29 points or 1.81% at 15,638.93. The S&P 500 surged by 58.36 points or 1.19% at 4,964.55, while the Dow Jones Industrial Average ended higher by 186.47 points or 0.48% at 38,706.31.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.14% at 104.11.
Crude Oil
WTI crude prices are trading at $72.69 up by 0.57%, while Brent crude prices are trading at $77.81 up by 0.62%, on Monday morning.
Asian Markets
Shares in the Asia-Pacific region traded in mixed territory on Monday. The Asia Dow is trading up by 0.14%, where as the Japan’s Nikkei 225 is ended in green, up by 0.41%, Hong Kong’s Hang Seng index is closed lower by 0.21% and the benchmark Chinese index Shanghai Composite is dropped by 1.46% to end Friday’s trading session.
FII, DII Data
Foreign institutional investors (FII) mopped shares worth net Rs 70.7 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,463.2 crore on February 2, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Hindustan Copper, India Cements, Indus Tower, SAIL, and Zee Entertainment Enterprise February 5, 2024.
Technical View
Commenting on the Technical outlook of Rupak De, Senior Technical Analyst at LKP Securities, said Nifty surpassed the 22,000 mark during the first half of the Friday session but subsequently formed a double top on the hourly chart. Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125. Conversely, a break below the support level at 21,500 could indicate a bearish momentum. In the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond.
Bank Nifty Outlook
“The Bank Nifty