GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Wednesday. Here is all you need to know before the market opens.
GIFT Nifty traded up by 117.50 points or 0.53% at 22,122 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Wednesday. Previously, on Tuesday, the NSE Nifty 50 gained 157.70 points or 0.72% to settle at 21,929.40, while the BSE Sensex soared by 454.68 points or 0.63% to 72,186.10.
“Markets reversed Monday’s decline and gained nearly a percent, in continuation to the prevailing consolidation range. After the flat start, the Nifty gradually inched higher as the day progressed and finally settled closer to the day’s high. Most sectors traded in sync with the move wherein IT, metal and auto were among the top performers while banking and FMCG remained subdued. The buoyancy returned to the broader indices after a breather and both midcap and smallcap gained in the range of 0.8%-1.2%,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
Mishra also added that, All key sectors, barring banking, are attracting buying on a rotational basis and that is helping the index to maintain a positive tone amid consolidation. The recent price action indicates the prevailing tone to continue and traders should maintain their focus on stock selection. We reiterate our preference for metal, IT, auto and pharma for long trades and suggest staying selective in the others.
Key things to know before share market opens on February 7, 2024
Wall Street
The U.S. bond market bounced back after a two-day rout, with investors awaiting a slew of Federal Reserve speakers for clues on whether the latest economic reports will impact their rate outlook, Bloomberg reported. The tech-heavy Nasdaq Composite ended up by just 11.32 points or 0.07% at 15,609. The S&P 500 gained by 11.42 points or 0.23% at 4,954.23, while the Dow Jones Industrial Average surged by 141.24 points or 0.37% at 38,521.36.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.06% at 104.15.
Crude Oil
WTI crude prices are trading at $73.45 up by 0.19%, while Brent crude prices are trading at $78.69 up by 0.13%, on Wednesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading Wednesday’s session in positive territory. The Asia Dow is trading up by 0.85%, where as the Japan’s Nikkei 225 is trading in red, down by 0.41%, Hong Kong’s Hang Seng index is trading higher by 4.04% and the benchmark Chinese index Shanghai Composite is gained by 3.23% to end Tuesday’s trading session.
FII, DII Data
Foreign institutional investors (FII) bought shares worth net Rs 92.5 crore, while domestic institutional investors (DII) offloaded shares worth net Rs 1,096.3 crore on February 6, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Ashok Leyland, Hindustan Copper, India Cements, Indus Tower, National Aluminium, UPL, and Zee Entertainment Enterprise February 7, 2024.
Technical View
Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty exhibited a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the market’s direction. A range-bound movement is expected to persist until a breakout occurs on either side. A decisive upward move beyond 21950 has the potential to propel the Nifty towards 22200. Conversely, a decline below 21850 could instigate a correction towards the 21700 level.
Bank Nifty Outlook
“The Bank Nifty index experienced a subdued trading session one day ahead of the weekly expiry, with an ongoing struggle between bears and bulls. The lack of a clear trend indicates that a breakout is awaited to determine the market direction. The support is positioned at 45500, while the immediate hurdle lies at 46000. A successful break above 46000 is anticipated to propel the index towards 46500 on the upside,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.