GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening Friday. Here is all you need to know before the market opens.
GIFT Nifty traded down by 52.50 or 0.24% at 22,015 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 152.05 points or 0.69% to settle at 21,995.85, while the BSE plunged 454.69 points or 0.62% to 72,488.99.
“It turned out to be a volatile day as Nifty swung sharply on both sides and finally shed nearly half a percent. The tone was positive in the first half however a sharp dip in the middle, followed by a gradual decline till the end. Eventually, it settled closer to the day’s low at 21,995.85 level; down by 0.7%. The majority of sectors traded in sync with the move wherein FMCG, banking and financials were among the top losers. Meanwhile, the broader indices showed resilience for yet another day and ended almost unchanged,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, We have been seeing pressure on every bounce and Nifty has tested the lower band of the rising channel around 21,960 today. Its break would prompt a further fall to the 21,750-21,600 zone. Meanwhile, volatility across sectors is further adding to the traders’ worries. We thus suggest limiting positions and waiting for clarity.
Key things to know before share market opens on April 19, 2024
Wall Street
US Treasury yields edged higher after solid economic data spurred bets the Federal Reserve will be in no rush to cut interest rates, Bloomberg reported. The tech-heavy Nasdaq Composite ended down by 81.87 points or 0.24% at 15,601.50. The S&P 500 dropped by 11.09 points or 0.22% at 5,011.12, while the Dow Jones Industrial Average ended higher by 22.07 points or 0.06% at 37,775.38.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.05% at 106.21.
Crude Oil
WTI crude prices are trading at $82.61 down by 0.03%, while Brent crude prices are trading at $86.97 up by 0.08%, on Friday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Friday morning. The Asia Dow is trading down by 0.38%, where as the Japan’s Nikkei 225 is trading in red, down by 1.70%, Hong Kong’s Hang Seng index is ended higher by 0.82% and the benchmark Chinese index Shanghai Composite is ended up by 0.09%.
FII, DII Data
Foreign institutional investors (FII) sold shares worth net Rs 4,260.3 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,285.5 crore on April 18, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Balrampur Chini Mills, Bandhan Bank, Exide Industries, GNFC, Hindustan Copper, Idea, Metropolis, National Aluminium, Piramal Enterprises, SAIL, and Zee Entertainment Enterprise in F&O on April 19, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty continued to weaken as the index remained below the critical moving average of 21EMA. However, on the hourly chart, the index has formed a bullish harami pattern, suggesting a potential bullish reversal in the near term. Additionally, a bullish divergence is evident on the hourly chart. Looking ahead, the index might advance towards 22,200/22,300; sustained trading above 22,300 could further strengthen the market. Support is situated at 21,900.
Bank Nifty Outlook
“The Bank Nifty Index remains under bearish control, with any upward movements facing aggressive selling, highlighting a prevailing “sell on rise” sentiment among traders. The major resistance for the index is positioned at 48,000, where significant call writing activity has been observed, indicating strong resistance at this level. The overall market tone continues to be bearish, and if the selling pressure persists, the index could test its next major support level at 46,500, where the 100-day exponential moving average (EMA) is located,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.