GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a negative opening on Wednesday. Here’s a look at the key things to know before the market opens.
GIFT Nifty traded down by 89.50 points or 0.38% at 23,259.50 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 ended up by just 5.65 points or 0.02% to settle at 23,264.85 while the BSE Sensex dropped 33.48 points or 0.04% to 76,456.60.
“The markets remained range-bound and ended unchanged, continuing Monday’s trend. After a flat start, the Nifty gradually climbed higher, but profit-taking in the latter half erased all gains, eventually settling at 23,264.85. Meanwhile, a mixed sectoral trend persisted, with realty and auto sectors edging higher and emerging as top performers, while FMCG, pharma, and banking sectors faced some profit-taking. The broader indices outperformed, with both midcap and smallcap indices gaining over half a percent,” said Ajit Mishra – SVP, Research, Religare Broking.
Mishra also added that, This pause in the index was largely anticipated, and we expect it to conclude soon. In the meantime, traders should maintain a stock-specific trading approach with a positive bias. In addition to key sectors, certain themes like agriculture-related stocks (fertilizer and sugar) and chemical stocks are drawing noticeable interest. Participants should adjust their positions accordingly.
Key things to know before share market opens on June 12, 2024
Wall Street
The S&P 500 and Nasdaq registered record closing highs for a second straight day on Tuesday, helped by a gain of more than 7% in Apple, opens new tab shares, while investors also awaited consumer prices data and a policy announcement from the Federal Reserve, reported Reuters. The tech-heavy Nasdaq Composite ended up by 151.02 points or 0.88% at 17,343.55. The S&P 500 ended higher by 14.53 points or 0.27% at 5,375.32, while the Dow Jones Industrial Average dropped 120.62 point or 0.31% at 38,747.42.
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 105.29.
Crude Oil
WTI crude prices are trading at $78.08 up by 0.44%, while Brent crude prices are trading at $82.01 up by 0.11%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in negative territory on Wednesday morning. The Asia Dow is trading down by 1.09%, where as the Japan’s Nikkei 225 is trading in red, down by 0.68%, Hong Kong’s Hang Seng index is ended lower by 1.04% and the benchmark Chinese index Shanghai Composite traded down by 0.76%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth Rs 111.04 crore, while domestic institutional investors (DII) mopped shares worth Rs 3,193.29 crore on June 11, 2024, according to the provisional data available on the NSE.
F&O Ban
The NSE added Balrampur Cini Mills, GMR Airports, Hindustan Copper, SAIL, India Cement, and Zee Entertainment Enterprises in F&O on June 12, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said Nifty remained sideways during the day as there was no directional move. The sentiment might remain sideways as well until it breaks out of the 23150-23350 range. Any decisive breakout on either side might confirm the future direction of the market. On the higher end, above 23350, it might move towards 23600. Meanwhile, support below 23150 is placed at 23000-22900..
Bank Nifty Outlook
“The Bank Nifty Index experienced a sideways trading session and was unable to surpass the 50000 mark, where the highest open interest is built up on the call side. Once the index breaks above 50000, it is likely to see sharp short covering towards the 50500/51000 levels. The undertone remains bullish, and traders should adopt a buy-on-dip approach with support at 49000, where the highest open interest is built up on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
