GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here’s a look at the key stocks to watch in trade.
GIFT Nifty traded up by 46 points or 0.19% at 24,407 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 ended down by 108.75 points or 0.45% to settle at 24,324.45 while the BSE Sensex plunged 426.86 points or 0.53% to 79,924.78.
“Markets fluctuated sharply within a range and ended up losing nearly half a percent, wiping out the gains from Tuesday’s session. After a flat start, Nifty plunged sharply in the early hours but a recovery in select heavyweights helped pare some losses as the day progressed. It eventually settled at 24,324, down by 0.45%. Most sectors ended lower in line with the benchmark, with auto, metal, and IT being the top losers. The broader indices also took a hit, pushing market breadth into negative territory,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also The intraday slide in the index has slightly dented sentiment, but resilience in certain pockets limited the damage. We believe it is prudent to refrain from aggressive long positions in the index for now and wait for further clarity. Additionally, we have started seeing erratic swings across the board, which are likely to intensify with the start of the earnings season. Traders should prefer a hedged approach and closely monitor their position sizes.
Key things to know before share market opens on July 11, 2024
Wall Street
The Nasdaq and S&P 500 rallied to record high closes on Wednesday, fueled by gains in Nvidia and other Wall Street heavyweights ahead of inflation data and quarterly earnings reports due this week, reported Returns. The tech-heavy Nasdaq Composite ended up by 218.16 points or 1.18% at 18,647.45. The S&P 500 ended higher by 56.93 points or 1.02% at 5,633.91, while the Dow Jones Industrial Average ended higher by 429.39 point or 1.09% at 39,721.36.
Jerome Powell on U.S. Inflation
Federal Reserve Chair Jerome Powell stated on Wednesday that he was hesitant to declare victory over inflation, emphasizing that the U.S. economy was progressing towards achieving stable prices and sustaining low unemployment. Powell and his colleagues at the Fed have expressed their stance on holding off interest rate cuts until they are more assured that inflation is returning to the central bank’s targeted 2% level, following a significant rise during the pandemic.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up by 0.01% at 104.98.
Crude Oil
WTI crude prices are trading at $82.50 up by 0.49%, while Brent crude prices are trading at $85.42 up by 0.40%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in positive territory on Thursday morning. The Asia Dow is trading up by 0.78%, where as the Japan’s Nikkei 225 is trading in green, up by 1.07%, Hong Kong’s Hang Seng index is traded higher by 0.90% and the benchmark Chinese index Shanghai Composite is trading marginally lower by 0.19%.
FII, DII Data
Foreign institutional investors (FII) bought shares worth Rs 583.96 crore, while domestic institutional investors (DII) mopped shares worth Rs 1,082.40 crore on July 10, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aditya Birla Fashion and Retail, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers GNFC, IEX, India Cements, Indus Tower, RBL Bank and Piramal Enterprises in F&O on July 11, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said the bears remained at the helm as the index slipped by more than 100 points for the first time in many days. On the lower end, it found support just above the upper band of the rising channel. A bearish engulfing pattern has formed on the daily chart. Additionally, heavy call writing coupled with decent put unwinding ahead of the weekly expiry suggests the possibility of a correction. Immediate support is placed at 24,270. Below 24,270, the Nifty might fall towards 24,100-24,000. On the higher end, resistance is placed at 24,350-24,400. Expect another round of short covering above 24,400.
Bank Nifty Outlook
“The Bank Nifty index continued to witness selling pressure from higher levels and was unable to surpass the 52500 mark, where call writers are active. The index is trading near a crucial support zone of 52000-51800. If it manages to hold this level, it can witness a pullback rally towards 52500. A sustained move above 52500 will open up gates for 53000, but if it fails to hold the support of 51800, it can decline further towards the 51300-51000 zone,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.