GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Tuesday. Here’s a look at things to know before markets open today.
GIFT Nifty traded up by 51.50 points or 0.21% at 24,660 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended up by 31.50 points or 0.13% to settle at 24,572.65 while the BSE Sensex dropped 12.16 points or 0.02% to 80,424.68.
“Markets began the week on a muted note and ended nearly flat, taking a breather after Friday’s surge. Following an initial uptick, the Nifty traded within a narrow range and ultimately closed at 24,580 level. Sectoral performance was mixed, with metals, energy, and IT showing decent gains, while auto and banking lagged behind. The broader indices followed a similar pattern, with the small-cap index performing well, gaining over one and a half percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that with the recovery in global markets is supporting the index’s positive tone, but the underperformance of banking majors is limiting momentum. Amid all, we recommend maintaining a “buy on dips” strategy, with a focus on stock selection. Our preference remains for the IT and FMCG sector, and we suggest being selective in others.
Key things to know before share market opens on August 20, 2024
Wall Street
U.S. stocks advanced on Monday, building on their largest weekly percentage gain of the year as investors focused on the Democratic National Convention and the upcoming Jackson Hole Economic Symposium, reported Returns. The tech-heavy Nasdaq Composite ended up by 245.05 points or 1.39% at 17,876.77. The S&P 500 ended higher by 54 points or 0.97% at 5,608.25, while the Dow Jones Industrial Average is jumped by 236.77 point or 0.58% at 40,896.53.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.52% at 101.87.
Crude Oil
WTI crude prices are trading at $73.38 down by 0.38%, while Brent crude prices are trading at $77.33 down by 0.42%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in mixed territory on Tuesday morning. The Asia Dow is trading down by 0.02%, where as the Japan’s Nikkei 225 is trading in green, up by 1.31%, South Korea’s KOSPI index is traded higher by 0.87% and the benchmark Chinese index Shanghai Composite trading in green, up by 0.14%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 2,667.46 crore, while domestic institutional investors (DII) mopped shares worth Rs 1,802.92 crore on August 19, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Aarti Industries, Aarti Industries, Aditya Birla Fashion and Retail, Bandhan Bank, Chambal Fertilisers and Chemicals, GNFC, Granules India, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, NMDC, Piramal Enterprises, Punjab National Bank, RBL Bank, SAIL, Sun TV Network in the F&O Ban on August 20, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said that The Nifty remained rangebound throughout the day, appearing to pause before the next rally. The index closed above the recent consolidation for the second consecutive day. The trend likely favors the bulls as long as it stays above 24,300. On the higher end, the Nifty might move higher, with resistances placed at 24,750-24,800.
Bank Nifty Outlook
“The benchmark index, Bank Nifty, after touching its resistance at the 50,750 mark, witnessed some profit booking at higher levels. However, the immediate technical structure remains positive, with immediate support at 50,200, followed by stronger support at 50,000 and 49,800. Resistance lies near 50,750, with additional hurdles at 51,000 and 51,200. A ‘buy on dips’ strategy is recommended, as the index is poised for further upward momentum once the immediate support levels hold firm,” said Riyank Arora Technical Analyst at Mehta equities.